- In the largest shareholder meeting in
company history, Starbucks celebrates transformative year in fiscal
2018, highlighted by double digit growth in topline revenue of
$24.7 billion, up 10% over the prior year; reaffirms ongoing growth
algorithm of consolidated revenue growth of 7% to 9% and non-GAAP
earnings per share growth of at least 10%.
- Company unveils plans to modernize the
Starbucks Experience with a focus on three key attributes:
convenience, comfort and connection.
- Announced $100 million cornerstone
investment in Valor Siren Ventures to accelerate innovation in “new
retail.”
- With a focus on disciplined growth in
U.S. and China, Starbucks celebrates the 30,000th store
opening.
- Reaffirming its commitment to remain a
company that believes in the pursuit of doing good, Starbucks
announced it maintained equity in pay for race and gender in the
U.S. for the second consecutive year and verified gender equity in
pay in China and Canada.
- Company demonstrates latest innovations
in sustainable coffee: further reduction of straws; greener cups;
and digitally traceable coffee that shows the journey from bean to
cup.
Starbucks Corporation (NASDAQ: SBUX) today will host its 27th
Annual Meeting of Shareholders, with nearly 4,000 shareholders,
partners (employees), invited guests and board members in
attendance. Key presenters at the meeting will include Kevin
Johnson, president and chief executive officer of Starbucks; Roz
Brewer, Americas group president and chief operating officer;
Patrick Grismer, executive vice president and chief financial
officer; and Michelle Burns, senior vice president of Global Coffee
& Tea.
Committed to honoring Starbucks heritage while setting the
course to creating an enduring company, Johnson and Starbucks
leadership team will set a vision for reimagining and reinventing
the core areas of the Starbucks Experience. Throughout the
event, leaders will preview differentiated and elevated customer
and partner (employee) experiences.
In addition, the company will showcase opportunities where it is
uniquely positioned to serve as the catalyst for future “new
retail” innovations and announced commitments aimed to create
meaningful societal impact.
“Starbucks is a different kind of company – and we have been
since our founding,” Johnson said. “Our long-term plan for growth
with focus and discipline is built on the acknowledgement that the
pursuit of profit is not in conflict with the pursuit of doing
good. We are a part of millions of people’s everyday lives around
the world, and I believe we are uniquely positioned to be one of
the most enduring brands of all time.”
The Third Place: Reimagined
Brand endurance requires evolving with customer’s changing
needs. To that end, Brewer will reveal the company’s plans to
reimagine the third place, with a focus on three key attributes:
convenience, comfort and connection. Through this lens, Brewer will
announce Starbucks will take a phased approach to modernizing the
customer experience across all key touchpoints for customers,
beginning this summer in New York City.
“I don’t want anyone to walk away today thinking this is about
furniture or a new renovation strategy,” said Brewer. “Reimagining
the third place is about listening to our customers, so we can
better position our business now and for the future.”
Through this approach, the company aims to learn directly from
its customers and adapt changes to new and better experiences using
technology, product innovation, in addition to new and reimagined
store formats. The company also will reiterate its commitment to
the continued expansion and evolution of programs like Starbucks
Delivers® – now available in 12 countries – and Starbucks
Rewards.
“Our relationship with our customers starts the moment they
think of Starbucks. They connect with us through their barista and
the quality of what’s in the cup they take with them,” Brewer said.
“Their third place is everywhere they’re holding our cup. No matter
their journey, after leaving our stores, that feeling of comfort
stays with them. And in an increasingly busy and on-demand world,
it’s that feeling that keeps the third place growing.”
Starbucks Commits $100 Million as Cornerstone Investor in
Valor Siren Ventures
Furthering its efforts to focus on new ideas and technologies
that are relevant to customers, inspiring to partners (employees),
and meaningful to the Starbucks business, Starbucks announces today
its pioneering investment in the new Valor Siren Ventures I L.P.
(“VSV”).
This investment will serve as a catalyst for the next generation
of food and retail start-up companies. Managed by Valor Equity
Partners, a leading growth-focused private equity investment firm
that was among the first investors in food technology, the new fund
will identify and invest in companies who are developing
technologies, products, and solutions relating to food or retail.
These verticals are increasingly relevant to Starbucks as it seeks
to support its world-class talent with an innovation agenda
accelerated by external relationships.
The Starbucks $100 million cornerstone commitment to VSV is the
first of its kind for the company, and the new fund will seek to
raise an additional $300 million in the coming months from other
strategic partners and key institutional investors.
“We believe that innovative ideas are fuel for the future, and
we continue to build on this heritage inside our company across
beverage, experiential retail, and our digital flywheel,” said
Johnson. “At the same time, and with an eye toward accelerating our
innovation agenda, we are inspired by, and want to support the
creative, entrepreneurial businesses of tomorrow with whom we may
explore commercial relationships down the road. This new
partnership with Valor presents exciting opportunities, not only
for these startups, but also for Starbucks, as we build an enduring
company for decades to come.”
Delivering on Returns for Shareholders
On the heels of a fiscal year of unprecedented growth and
revenues of more than $24.7 billion, the company has returned $14
billion towards its previously announced commitment to return
$25 billion to shareholders in the form of share buybacks and
dividends over a three-year period through fiscal 2020.
As part of this commitment, the company entered into a $2
billion accelerated share repurchase program (ASR) of the Company’s
common stock. Initial delivery of shares represents approximately
80% of the total shares estimated to be repurchased under the ASR,
which is expected to be completed no later than June 2019. The
total shares repurchased will be based on the volume weighted
average share price during the term of the ASR, less an agreed
discount, and is subject to certain adjustments under the
agreements.
CREATING SOCIAL IMPACT
GLOBALLY
For more than 48 years, the Starbucks brand has been fueled by
both an elevated customer experience and passionate, continual
efforts to create meaningful impact in the communities it
serves.
That commitment isn’t more evident than in the company’s
continued drive towards a more sustainable Starbucks.
Greener Cups, Fewer Straws and Tracing Your Coffee’s Journey
via Starbucks® Mobile App
Burns will outline significant, collaborative progress and new
plans on greener cups, fewer straws and digitally tracing its
coffee as Starbucks works to support and empower coffee farmers and
decrease the company’s environmental footprint.
In addition, speakers will share progress related to supporting
the communities that host and sustain Starbucks® stores, and
providing pathways and opportunities to people.
Starbucks in the U.S. Maintains Equity in Pay for Race and
Gender; Starbucks in China and Canada Verify Gender Equity in
Pay
At last year’s Annual Meeting of Shareholders, Starbucks
announced 100% pay equity in the U.S. for women, men and people of
all races performing similar work, as well as a commitment to
achieve gender equity in pay globally in all company-owned
markets.
Today, Johnson will confirm Starbucks maintained pay equity in
the U.S. this year, and that China and Canada are the first
international markets to verify the fulfillment of the global
commitment to gender equity in pay.
Last year the company announced its Pay Equity Principles –
Equal Footing, Transparency and Accountability – after drawing on
its own experience to address systemic barriers to gender equity in
pay. China and Canada have joined the U.S. in committing to these
Pay Equity Principles and will continue to update country-centric
best practices to address challenges unique to each market.
This global commitment has set a new bar for multinational
companies. The effort is supported by equal rights champion the
Billie Jean King Leadership Initiative (BJKLI) and leading national
women’s organizations, the National Partnership for Women &
Families and the American Association of University Women.
Creating More Opportunities
Other updates related to Starbucks efforts to create pathways
for people who face barriers to opportunity include the
following:
- Veterans and Military Spouses:
With 22,000 hires to date, Starbucks is on track to well exceed its
goal of 25,000 hires by 2025.
- Opportunity Youth: Starbucks is
on track to meet its goal of hiring 100,000 Opportunity Youth –
defined by the U.S. Department of Labor as 16-24-year-olds not in
school or in the labor force – by 2020, with 75,000 hired so
far.
- Partners in Pursuit of a Higher
Education: The Starbucks College Achievement Plan – a model for
access to higher education for employees in partnership with
Arizona State University – has more than 12,000 scholars as of this
year and more than 2,300 graduates since its launch in 2014.
Through the Starbucks College Achievement Plan, partners earn a
bachelor’s degree with tuition costs covered, without a further
commitment to Starbucks. The program’s goal is 25,000 graduates by
2025.
Supporting Communities Across the Globe
Starbucks other updates related to supporting its various
communities include the following:
- Increased Commitment to Ending
Hunger: Starbucks is increasing its commitment to ending
hunger, particularly among children and families, by investing
$300,000 in Feeding America food bank mobile pantry programs across
the U.S. The company also marks a milestone of 15 million meal
donations made since 2016 through its U.S. FoodShare program.
Worldwide, the company now has hunger-related donation programs in
Canada, the UK, Switzerland, Austria and the Netherlands with more
planned expansion.
- Expansion of Efforts to Support
Unsheltered Families in the Seattle Area: Starbucks will be
expanding its partnership with United Way of King County in the
coming year to support families experiencing homelessness, and
reported that the late 2018 crowd-funding effort for the No Child
Sleeps Outside campaign with Mary’s Place and other partners raised
$2.4 million in 45 days to help bring unsheltered families inside
and move them into permanent stable housing.
Starbucks Annual Meeting of Shareholders will begin at 10 a.m.
PT today and will be webcast and can be accessed at
http://investor.starbucks.com. A replay of the webcast will be
available on the company’s website until end of day Friday,
September 20, 2019. Please visit https://stories.starbucks.com/ to
find images, b-roll and live updates of the Annual Meeting of
Shareholders.
Forward Looking Statements
Certain statements contained herein are “forward-looking
statements” within the meaning of the applicable securities laws
and regulations. Generally, these statements can be identified by
the use of words such as “anticipate,” “expect,” “believe,”
“could,” “estimate,” “feel,” “forecast,” “intend,” “may,” “plan,”
“potential,” “project,” “should,” “will,” “would,” and similar
expressions intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. These statements are based upon information
available to Starbucks as of the date hereof, and Starbucks actual
results or performance could different materially from those stated
or implied due to risks and uncertainties associated with its
business. These risks and uncertainties include, but are not
limited to, fluctuations in U.S. and international economies and
currencies, our ability to preserve, grow and leverage our brands,
potential negative effects of incidents involving food or
beverage-borne illnesses, tampering, adulteration, contamination or
mislabeling, potential negative effects of material breaches of our
information technology systems to the extent we experience a
material breach, material failures of our information technology
systems, costs associated with, and the successful execution of,
the company’s initiatives and plans, including the integration of
Starbucks Japan and East China business and the successful
execution of our Global Coffee Alliance with Nestle, the acceptance
of the company’s products by our customers, our ability to obtain
financing on acceptable terms, the impact of competition, the
prices and availability of coffee, dairy and other raw materials,
the effect of legal proceedings, the effects of changes in U.S. tax
law and related guidance and regulations that may be implemented,
and other risks detailed in the company filings with the Securities
and Exchange Commission, including the “Risk Factors” section of
the Starbucks Annual Report on Form 10-K for the fiscal year ended
September 30, 2018. The company assumes no obligation to update any
of these forward-looking statements.
Non-GAAP Financial Measures
Non‐GAAP measures included in our press release were not
reconciled to the comparable GAAP financial measures because the
GAAP measures are not accessible on a forward‐looking basis. The
Company is unable to reconcile these forward-looking non-GAAP
financial measures to the most directly comparable GAAP measures
without unreasonable efforts because the Company is currently
unable to predict with a reasonable degree of certainty the type
and extent of certain items that would be expected to impact GAAP
measures for these periods but would not impact the non-GAAP
measures. Such items may include acquisition, divestitures,
restructurings and other items. The unavailable information could
have a significant impact on the Company’s GAAP financial
results.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting high-quality arabica coffee.
Today, with more than 30,000 stores around the globe, Starbucks is
the premier roaster and retailer of specialty coffee in the world.
Through our unwavering commitment to excellence and our guiding
principles, we bring the unique Starbucks Experience to life for
every customer through every cup. To share in the experience,
please visit our stores or online at stories.starbucks.com
and Starbucks.com.
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