Emerging Growth Companyd18rn0p25nwr6d.cloudfront.net/CIK-0000829224/da245320-9a5b-40… ·...

UNITEDSTATESSECURITIESANDEXCHANGECOMMISSION

Washington,DC20549

FORM8-KCURRENTREPORT

PursuanttoSection13or15(d)ofTheSecuritiesExchangeActof1934

DateofReport(Dateofearliesteventreported):October30,2019

StarbucksCorporation(Exactnameofregistrantasspecifiedinitscharter)

Washington 0-20322 91-1325671(State or other jurisdiction of

incorporation)(Commission File Number) (IRS Employer

Identification No.)

2401UtahAvenueSouth,Seattle,Washington98134(Address of principal executive offices) (Zip Code)

(206)447-1575(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the followingprovisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title TradingSymbol NameofeachexchangeonwhichregisteredCommon Stock, par value $0.001 per share SBUX NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) orRule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new orrevised financial accounting standards provided pursuant to Selection 13(a) of the Exchange Act. o

Item2.02 ResultsofOperationsandFinancialCondition.

On October 30, 2019, Starbucks Corporation issued a press release announcing its financial results for the quarter ended September 29, 2019. A copy of the pressrelease is attached as Exhibit 99.1.

Item8.01OtherEvents.

In the fourth quarter of fiscal 2019, Starbucks Corporation re-aligned its segment reporting structure to better reflect the cumulative effect of streamlining efforts.Specifically, the previous China/Asia Pacific ("CAP") segment and Europe, Middle East, and Africa ("EMEA") segment have been combined into oneInternational segment. Concurrently, results of Siren Retail, a non-reportable operating segment consisting of Starbucks ReserveTM Roastery & Tasting Rooms,Starbucks Reserve brand and Princi operations, which was previously included within Corporate and Other, is now reported within the Americas and Internationalsegments based on the geographical location of the operations. Further, to better support Starbucks review of its results, certain costs have also been reclassified. Acopy of the restated historical financial information is attached as Exhibit 99.2

Item9.01 FinancialStatementsandExhibits.

(d) Exhibits.

ExhibitNo. Description99.1 Earnings Release of Starbucks Corporation dated October 30, 201999.2 Fourth Quarter Fiscal 2019 Re-segmentation and Statements of Earnings Reclassifications

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by theundersigned hereunto duly authorized.

STARBUCKSCORPORATION Dated: October 30, 2019 By: /s/ Patrick J. Grismer Patrick J. Grismer executive vice president, chief financial officer

Exhibit99.1StarbucksReportsQ4andFullYearFiscal2019Results

Q4 Comparable Store Sales Up 5% Globally, Led by 6% Comp Growth in the U.S. and 5% Comp Growth in ChinaGlobal Net Store Growth of 7% Versus Prior Year, Led by 17% Net Store Growth in China

GAAP EPS of $0.67; Non-GAAP EPS of $0.70, Up 13% Year-Over-YearActive Starbucks® Rewards Membership in the U.S. Up 15% Year-Over-Year to 17.6 Million

Returned $12 Billion to Shareholders in Fiscal 2019; Announces Quarterly Dividend Increase of 14% to $0.41 Per ShareIntroduces Fiscal 2020 Outlook Reaffirming Long-term Operating Growth Model

SEATTLE; October 30, 2019 – Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal fourthquarter and 52-week fiscal year ended September 29, 2019. GAAP results in fiscal 2019 and fiscal 2018 include items which are excludedfrom non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for moreinformation.

“I’m very pleased with our strong finish to fiscal 2019, as we sustained positive momentum across each of our business segments,” saidKevin Johnson, president and ceo. “Our U.S. business delivered 6% comparable store sales growth in the fourth quarter, while China grewcomparable store sales by 5% and total transactions by 13%. Our strong performance throughout fiscal 2019 gives us confidence in a robustoperating outlook for fiscal 2020.”

“We are making meaningful progress against our strategic priorities while streamlining the company, bringing more focus and discipline toeverything we do. The investments we are making for the long term---in our partners, our stores, beverage innovation and digital---arecollectively delivering an elevated Starbucks Experience, as evidenced by all-time-high customer connection scores in the fourth quarter. Thislong-term focus is instrumental to how we are building an enduring company,” concluded Johnson.

Q4Fiscal2019Highlights• Global comparable store sales up 5%, driven by a 3% increase in average ticket and a 2% increase in comparable transactions

◦ Americas and U.S. comparable store sales up 6%, both driven by a 3% increase in average ticket and a 3% increase incomparable transactions

◦ International comparable store sales up 3%, driven by a 3% increase in average ticket and a 1% increase in transactions;China comparable store sales increased 5%, with comparable transactions up 2%

• The company opened 630 net new stores in Q4, yielding 31,256 stores at the end of the quarter, a 7% increase over the prior year• Consolidated net revenues of $6.7 billion grew 7% over the prior year

◦ Consolidated net revenues grew 10% over the prior year adjusted for unfavorable impacts of approximately 3% fromStreamline-driven activities

◦ Streamline-driven activities include the licensing of our CPG and Foodservice businesses to Nestlé following the close of thetransaction on August 26, 2018, and the conversion of certain international retail operations from company-operated tolicensed models

• GAAP operating margin expanded 90 basis points year-over-year to 16.1%, primarily due to sales leverage, cost savings initiatives,lapping prior-year Nestlé transaction-related costs and lower restructuring and impairment charges, partially offset by growth inwages and benefits, increased investments in labor hours and the 2019 Starbucks Leadership Experience

◦ Non-GAAP operating margin of 17.2% declined 90 basis points compared to the prior year. Excluding a 30-basis pointunfavorable impact from Streamline-driven activities, non-GAAP operating margin declined by approximately 60 basis pointscompared to the prior year

• GAAP Earnings Per Share of $0.67, up 20% over the prior year

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◦ Non-GAAP EPS of $0.70, up 13% over the prior year, inclusive of a 4% benefit from income tax rate favorability• The company returned $2.7 billion to shareholders through a combination of share repurchases and dividends• Starbucks® Rewards loyalty program grew to 17.6 million active members in the U.S., up 15% year-over-year

FullYearFiscal2019Highlights• Global comparable store sales up 5%, driven by a 3% increase in average ticket and a 1% increase in comparable transactions

◦ Americas and U.S. comparable store sales up 5%, both driven by a 3% increase in average ticket and a 2% increase incomparable transactions

◦ International comparable store sales up 3%, driven by a 2% increase in average ticket and a 1% increase in comparabletransactions; China comparable store sales increased 4%, with comparable transactions flat

• Consolidated net revenues of $26.5 billion grew 7% over the prior year◦ Consolidated net revenues grew 10% over the prior year adjusted for unfavorable impacts of approximately 2% from

Streamline-driven activities and 1% from foreign currency translation• GAAP operating margin declined 30 basis points year-over-year to 15.4%

◦ Non-GAAP operating margin of 17.2% declined 80 basis points compared to the prior year. Excluding a 70-basis pointunfavorable impact from Streamline-driven activities, non-GAAP operating margin declined by approximately 10 basis pointscompared to the prior year

• GAAP Earnings Per Share of $2.92, down 10% over the prior year◦ Non-GAAP EPS of $2.83, up 17% over the prior year, inclusive of a 7% benefit from income tax rate favorability

• The company returned $12.0 billion to shareholders through a combination of share repurchases and dividends

Fiscal2019Re-segmentationIn the fourth quarter of fiscal 2019, the company realigned its operating segment reporting structure to better reflect the cumulative effect ofits streamlining efforts. Specifically, the previous China/Asia Pacific ("CAP") segment and Europe, Middle East, and Africa ("EMEA")segment have been combined into one International segment. The company will continue to provide supplemental information on its two leadgrowth markets, the U.S. and China, in its quarterly earnings news releases in accordance with its "Growth at Scale" agenda.

Concurrently, results of Siren Retail, a non-reportable operating segment consisting of Starbucks ReserveTM Roastery & Tasting Rooms,Starbucks Reserve brand and Princi operations, which was previously included within Corporate and Other, is now reported within theAmericas and International segments based on the geographical location of the operations.

Further, to better support the review of its results, the company changed the classification of certain costs. The most significant change wasthe reclassification of company-operated store occupancy costs from cost of sales to store operating expenses. The company also made certainother immaterial changes. These reclassifications have been retrospectively applied.

There was no impact to consolidated net revenues, consolidated operating income, or net earnings per share as a result of these changes.

Concurrent with the change in reportable segments and reclassification of certain operating expenses noted above, the company revised itsprior period financial information to be consistent with the current period presentation.

Restated GAAP and non-GAAP quarterly financial information for FY18 and FY19 (through fiscal Q3) can be found on the SupplementalFinancial Data page of our Investor Relations website (http://investor.starbucks.com).

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Q4AmericasSegmentResults

QuarterEnded

Change(%)($ in millions) Sep29,2019 Sep30,2018 Comparable Store Sales Growth (1) 6% 4%

Change in Transactions 3% (1)% Change in Ticket 3% 5%

Store Count 18,067 17,460 3%Revenues $4,651.4 $4,259.9 9%Operating Income $938.9 $890.8 5%Operating Margin 20.2% 20.9% (70) bps(1) Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effect of fluctuations in foreign currencyexchange rates and Siren Retail stores.

Net revenues for the Americas segment grew 9% over Q4 FY18 to $4.7 billion in Q4 FY19, primarily driven by 6% growth in comparablestore sales, 607 net new store openings, or 3% store growth, over the past 12 months, and the impact of the adoption of new revenuerecognition accounting for stored value card (SVC) breakage.

Operating income grew 5% to $938.9 million in Q4 FY19, up from $890.8 million in Q4 FY18. Operating margin of 20.2% declined 70 basispoints, primarily due to the 2019 Starbucks Leadership Experience, growth in wages and benefits and increased investments in labor hours,partially offset by cost savings initiatives and sales leverage.

Q4InternationalSegmentResults

QuarterEnded

Change(%)($ in millions) Sep29,2019 Sep30,2018 Comparable Store Sales Growth (1) 3% 1%

Change in Transactions 1% (1)% Change in Ticket 3% 2%

Store Count 13,189 11,852 11%Revenues $1,572.1 $1,489.8 6%Operating Income $262.7 $222.4 18%Operating Margin 16.7% 14.9% 180 bps(1) Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effect of fluctuations in foreign currencyexchange rates and Siren Retail stores.

Net revenues for the International segment grew 6% over Q4 FY18 to $1.6 billion in Q4 FY19, primarily driven by 1,337 net new storeopenings, or 11% store growth, over the past 12 months, and a 3% increase in comparable store sales, partially offset by a 5% revenue-dilutive impact of converting certain retail businesses to fully licensed markets.

Q4 FY19 operating income of $262.7 million grew 18% over Q4 FY18 operating income of $222.4 million. Operating margin expanded 180basis points to 16.7%, primarily due to sales leverage, cost savings initiatives, labor efficiencies and the impact of the conversions of certainretail businesses to fully licensed markets, partially offset by growth in wages and benefits, unfavorable product mix shift and strategicinvestments.

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Q4ChannelDevelopmentSegmentResults

QuarterEnded

Change(%)($ in millions) Sep29,2019 Sep30,2018 Revenues $508.1 $539.3 (6)%Operating Income $190.9 $190.8 —%Operating Margin 37.6% 35.4% 220 bps

Net revenues for the Channel Development segment declined 6% from Q4 FY18 to $508.1 million in Q4 FY19, primarily due to licensing ourCPG and Foodservice businesses to Nestlé following the close of the transaction on August 26, 2018.

Operating income of $190.9 million in Q4 FY19 was flat compared to Q4 FY18. Operating margin expanded 220 basis points to 37.6%,primarily due to lapping prior year costs associated with the establishment of the Global Coffee Alliance, including business taxes associatedwith the up-front payment and employee-related costs. This favorability was partially offset by the impact of our ownership changes,including licensing our CPG and Foodservice businesses to Nestlé and the sale of our Tazo brand.

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Fiscal2020GuidanceThe company introduces the following fiscal year 2020 guidance (all growth targets are relative to fiscal year 2019 non-GAAP measuresunless specified):• Global comparable store sales growth of 3% to 4%• Approximately 2,000 net new Starbucks stores globally

◦ Americas approximately 600 net new stores (3% to 4% growth in the U.S.)◦ International approximately 1,400 net new stores (mid-teens growth in China)

• Consolidated GAAP revenue growth of 6% to 8%• Consolidated operating income growth of 8% to 10%• Consolidated operating margin improving modestly• GAAP interest expense of approximately $415 to $425 million• GAAP and non-GAAP effective tax rate in the range of 22% to 24%• GAAP EPS in the range of $2.84 to $2.89

◦ Non-GAAP EPS in the range of $3.00 to $3.05• Capital expenditures of approximately $1.8 billion

Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release.

The company will provide additional information regarding its business outlook during its regularly scheduled quarterly earnings conferencecall; this information will also be available following the call on the company's website at http://investor.starbucks.com.

CompanyUpdates

1. In July, Starbucks opened its first Starbucks NowTM store in Beijing, China. The new express store format integrates Starbucks storeenvironment with the company's Mobile Order & Pay technology and Starbucks® Delivers into one seamless and convenient experiencefor customers.

2. In September, Starbucks hosted over 12,000 store managers and field operations leaders at its largest ever Leadership Experience. Thethree-day conference held in Chicago was designed to help strengthen leadership capabilities and solidify the foundation of an enduringcompany.

3. In September, Starbucks welcomed three new appointees to its Board of Directors: Richard E. Allison, Jr., Chief Executive Officer ofDomino's; Andrew Campion, Executive Vice President and Chief Financial Officer of Nike; and Isabel Ge Mahe, Apple's Vice Presidentand Managing Director of Greater China. These appointments increased Starbucks Board of Directors to 13 members.

4. The company repurchased 23.5 million shares of common stock in Q4 fiscal 2019; approximately 29.2 million shares remain available forpurchase under the current authorization.

5. The Board of Directors declared a cash dividend of $0.41 per share, an increase of 14%, payable on November 29, 2019, to shareholdersof record as of November 13, 2019.

ConferenceCallStarbucks will hold a conference call today at 2:00 p.m. Pacific Time, which will be hosted by Kevin Johnson, president and ceo, and PatrickGrismer, cfo. The call and selected presentation materials will be webcast and can be accessed at http://investor.starbucks.com. A replay ofthe webcast will be available until end of day Thursday, November 28, 2019.

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AboutStarbucksSince 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with morethan 31,000 stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwaveringcommitment 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 us in our stores or online at stories.starbucks.com or www.starbucks.com.

Forward-LookingStatementsCertain 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,” “outlook,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “will,” “would,” and similar expressions intended to identifyforward-looking statements, although not all forward-looking statements contain these identifying words. These statements include statementsrelating to certain company initiatives, strategies and plans, as well as trends in or expectations regarding our diversified business model, thestrength, resilience, momentum, and potential of our business, operations, and brand, the impacts, benefits, goals and expectations of ourStreamline-driven initiatives and long-term investments, the execution and anticipated impact of our “Growth at Scale”agenda, with a focus on our two lead growth markets of the U.S. and China, expanding the global reach of the Starbucks brand through ourGlobal Coffee Alliance with Nestlé, increasing shareholder returns, the company's position to deliver predictable and sustainable results,building an enduring company, and the creation of meaningful long-term value for shareholders, the estimated impact of the changes in U.S.tax law, net new stores, outlook, guidance and projections for revenues, earnings per share, operating income, operating margins, comparablestore sales, capital expenditures, interest expense, G&A expenses, tax rates, and our fiscal 2020 financial targets, fiscal 2020 guidance andlong-term G&A expense guidance. These forward-looking statements are based on currently available operating, financial, and competitiveinformation and are subject to a number of significant risks and uncertainties. Actual future results may differ materially depending on avariety of factors including, but 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 weexperience a material breach, material failures of our information technology systems, costs associated with, and the successful execution ofthe company’s initiatives and plans, including the integration the East China business and successful execution of our Global Coffee Alliancewith Nestlé, the acceptance of the company’s products by our customers, our ability to obtain financing on acceptable terms, the impact ofcompetition, 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 andExchange Commission, including the “Risk Factors” section of Starbucks Annual Report on Form 10-K for the fiscal year ended September30, 2018. The company assumes no obligation to update any of these forward-looking statements.

Non-GAAPFinancialMeasuresCertain non‐GAAP measures included in our press release were not reconciled to the comparable GAAP financial measures because theGAAP measures are not accessible on a forward‐looking basis. The company is unable to reconcile these forward-looking non-GAAPfinancial measures to the most directly comparable GAAP measures without unreasonable efforts because the company is currently unable topredict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures for theseperiods but would not impact the non-GAAP measures. Such items may include acquisitions, divestitures, restructuring and other items. Theunavailable information could have a significant impact on the company’s GAAP financial results.

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Contacts:

StarbucksContact,InvestorRelations: StarbucksContact,Media:Durga Doraisamy Reggie Borges206-318-7118 [email protected] [email protected]

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STARBUCKSCORPORATIONCONSOLIDATEDSTATEMENTSOFEARNINGS

(unaudited, in millions, except per share data)

QuarterEnded QuarterEnded

Sep29,2019

Sep30,2018

%Change

Sep29,2019

Sep30,2018

Asa%oftotalnetrevenues Net revenues: Company-operated stores $ 5,480.1 $ 5,060.1 8.3 % 81.2 % 80.3 % Licensed stores 734.7 683.6 7.5 10.9 10.8 Other 532.2 559.9 (4.9) 7.9 8.9 Totalnetrevenues 6,747.0 6,303.6 7.0 100.0 100.0 Cost of sales 2,139.6 2,018.7 6.0 31.7 32.0 Store operating expenses 2,709.5 2,438.1 11.1 40.2 38.7 Other operating expenses 91.6 161.2 (43.2) 1.4 2.6 Depreciation and amortization expenses 344.7 326.6 5.5 5.1 5.2 General and administrative expenses 458.4 444.9 3.0 6.8 7.1 Restructuring and impairments 11.8 45.2 (73.9) 0.2 0.7 Total operating expenses 5,755.6 5,434.7 5.9 85.3 86.2 Income from equity investees 91.9 87.7 4.8 1.4 1.4 Operatingincome 1,083.3 956.6 13.2 16.1 15.2 Net gain resulting from divestiture of certain operations — 2.9 nm — — Interest income and other, net 16.4 36.2 (54.7) 0.2 0.6 Interest expense (95.7) (63.8) 50.0 (1.4) (1.0) Earnings before income taxes 1,004.0 931.9 7.7 14.9 14.8 Income tax expense 201.5 175.5 14.8 3.0 2.8 Net earnings including noncontrolling interests 802.5 756.4 6.1 11.9 12.0 Net earnings/(loss) attributable to noncontrolling interests (0.4) 0.6 nm — — NetearningsattributabletoStarbucks $ 802.9 $ 755.8 6.2 11.9% 12.0% Netearningspercommonshare-diluted $ 0.67 $ 0.56 19.6% Weighted avg. shares outstanding - diluted 1,205.6 1,348.7 Cash dividends declared per share $ 0.41 $ 0.36 SupplementalRatios: Store operating expenses as a % of company-operated store revenues 49.4 % 48.2 % Effective tax rate including noncontrolling interests 20.1 % 18.8 %

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YearEnded YearEnded

Sep29,2019

Sep30,2018

%Change

Sep29,2019

Sep30,2018

Asa%oftotalnetrevenues Net revenues: Company-operated stores $ 21,544.4 $ 19,690.3 9.4 % 81.3 % 79.7 % Licensed stores 2,875.0 2,652.2 8.4 10.8 10.7 Other 2,089.2 2,377.0 (12.1) 7.9 9.6 Totalnetrevenues 26,508.6 24,719.5 7.2 100.0 100.0 Cost of sales 8,526.9 7,930.7 7.5 32.2 32.1 Store operating expenses 10,493.6 9,472.2 10.8 39.6 38.3 Other operating expenses 371.0 554.9 (33.1) 1.4 2.2 Depreciation and amortization expenses 1,377.3 1,247.0 10.4 5.2 5.0 General and administrative expenses 1,824.1 1,708.2 6.8 6.9 6.9 Restructuring and impairments 135.8 224.4 (39.5) 0.5 0.9 Total operating expenses 22,728.7 21,137.4 7.5 85.7 85.5 Income from equity investees 298.0 301.2 (1.1) 1.1 1.2 Operatingincome 4,077.9 3,883.3 5.0 15.4 15.7 Gain resulting from acquisition of joint venture — 1,376.4 nm — 5.6 Net gain resulting from divestiture of certain operations 622.8 499.2 24.8 2.3 2.0 Interest income and other, net 96.5 191.4 (49.6) 0.4 0.8 Interest expense (331.0) (170.3) 94.4 (1.2) (0.7) Earnings before income taxes 4,466.2 5,780.0 (22.7) 16.8 23.4 Income tax expense 871.6 1,262.0 (30.9) 3.3 5.1 Net earnings including noncontrolling interests 3,594.6 4,518.0 (20.4) 13.6 18.3 Net loss attributable to noncontrolling interests (4.6) (0.3) nm — — NetearningsattributabletoStarbucks $ 3,599.2 $ 4,518.3 (20.3) 13.6% 18.3% Netearningspercommonshare-diluted $ 2.92 $ 3.24 (9.9)% Weighted avg. shares outstanding - diluted 1,233.2 1,394.6 Cash dividends declared per share $ 1.49 $ 1.32 SupplementalRatios: Store operating expenses as a % of company-operated store revenues 48.7 % 48.1 % Effective tax rate including noncontrolling interests 19.5 % 21.8 %

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SegmentResults(in millions)

Americas

Sep29,2019

Sep30,2018

%Change

Sep29,2019

Sep30,2018

Quarter Ended Asa%ofAmericastotalnetrevenues

Net revenues: Company-operated stores $ 4,164.2 $ 3,790.3 9.9 % 89.5% 89.0% Licensed stores 484.0 466.1 3.8 10.4 10.9 Other 3.2 3.5 (8.6) 0.1 0.1 Totalnetrevenues 4,651.4 4,259.9 9.2 100.0 100.0 Cost of sales 1,278.9 1,240.8 3.1 27.5 29.1 Store operating expenses 2,112.1 1,847.2 14.3 45.4 43.4 Other operating expenses 34.2 41.0 (16.6) 0.7 1.0 Depreciation and amortization expenses 180.6 161.7 11.7 3.9 3.8 General and administrative expenses 106.0 66.0 60.6 2.3 1.5 Restructuring and impairments 0.7 12.4 (94.4) — 0.3 Total operating expenses 3,712.5 3,369.1 10.2 79.8 79.1 Operatingincome $ 938.9 $ 890.8 5.4% 20.2% 20.9%

SupplementalRatio: Store operating expenses as a % of company-operated store revenues 50.7% 48.7%

Year Ended Net revenues: Company-operated stores $ 16,288.2 $ 14,921.5 9.2 % 89.2% 89.1% Licensed stores 1,958.0 1,814.0 7.9 10.7 10.8 Other 12.8 13.1 (2.3) 0.1 0.1 Totalnetrevenues 18,259.0 16,748.6 9.0 100.0 100.0 Cost of sales 5,174.7 4,884.1 5.9 28.3 29.2 Store operating expenses 8,064.8 7,248.6 11.3 44.2 43.3 Other operating expenses 159.8 151.2 5.7 0.9 0.9 Depreciation and amortization expenses 696.1 641.0 8.6 3.8 3.8 General and administrative expenses 323.9 305.1 6.2 1.8 1.8 Restructuring and impairments 56.9 33.4 70.4 0.3 0.2 Total operating expenses 14,476.2 13,263.4 9.1 79.3 79.2 Operatingincome $ 3,782.8 $ 3,485.2 8.5% 20.7% 20.8%


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International

Sep29,2019

Sep30,2018

%Change

Sep29,2019

Sep30,2018

Quarter Ended Asa%ofInternational

totalnetrevenues Net revenues: Company-operated stores $ 1,315.9 $ 1,269.8 3.6 % 83.7% 85.2% Licensed stores 250.7 217.5 15.3 15.9 14.6 Other 5.5 2.5 120.0 0.3 0.2 Totalnetrevenues 1,572.1 1,489.8 5.5 100.0 100.0 Cost of sales 486.1 447.8 8.6 30.9 30.1 Store operating expenses 597.3 590.6 1.1 38.0 39.6 Other operating expenses 31.9 24.4 30.7 2.0 1.6 Depreciation and amortization expenses 126.5 125.6 0.7 8.0 8.4 General and administrative expenses 82.4 78.9 4.4 5.2 5.3 Restructuring and impairments 12.0 26.6 (54.9) 0.8 1.8 Total operating expenses 1,336.2 1,293.9 3.3 85.0 86.9 Income from equity investees 26.8 26.5 1.1 1.7 1.8 Operatingincome $ 262.7 $ 222.4 18.1% 16.7% 14.9%


Year Ended Net revenues: Company-operated stores $ 5,256.2 $ 4,702.1 11.8 % 84.9% 84.7% Licensed stores 917.0 837.0 9.6 14.8 15.1 Other 17.5 12.1 44.6 0.3 0.2 Totalnetrevenues 6,190.7 5,551.2 11.5 100.0 100.0 Cost of sales 1,894.9 1,709.4 10.9 30.6 30.8 Store operating expenses 2,428.5 2,182.3 11.3 39.2 39.3 Other operating expenses 116.4 98.9 17.7 1.9 1.8 Depreciation and amortization expenses 511.5 447.6 14.3 8.3 8.1 General and administrative expenses 317.9 302.5 5.1 5.1 5.4 Restructuring and impairments 59.2 55.1 nm 1.0 1.0 Total operating expenses 5,328.4 4,795.8 11.1 86.1 86.4 Income from equity investees 102.4 117.4 (12.8) 1.7 2.1 Operatingincome $ 964.7 $ 872.8 10.5% 15.6% 15.7%


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Channel Development

Sep29,2019

Sep30,2018

%Change

Sep29,2019

Sep30,2018

Quarter Ended

Asa%ofChannelDevelopment

netrevenues Net revenues $ 508.1 $ 539.3 (5.8)% Cost of sales 359.1 314.3 14.3 70.7% 58.3% Other operating expenses 20.3 92.0 (77.9) 4.0 17.1 Depreciation and amortization expenses 0.3 0.1 nm 0.1 — General and administrative expenses 2.6 3.3 (21.2) 0.5 0.6 Total operating expenses 382.3 409.7 (6.7) 75.2 76.0 Income from equity investees 65.1 61.2 6.4 12.8 11.3 Operatingincome $ 190.9 $ 190.8 0.1% 37.6% 35.4%

Year Ended Net revenues $ 1,992.6 $ 2,297.3 (13.3)% Cost of sales 1,390.0 1,252.3 11.0 69.8% 54.5% Other operating expenses 76.2 286.5 (73.4) 3.8 12.5 Depreciation and amortization expenses 13.0 1.3 nm 0.7 0.1 General and administrative expenses 11.5 13.9 (17.3) 0.6 0.6 Total operating expenses 1,490.7 1,554.0 (4.1) 74.8 67.6 Income from equity investees 195.6 183.8 6.4 9.8 8.0 Operatingincome $ 697.5 $ 927.1 (24.8)% 35.0% 40.4%

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Corporate and Other

Sep29,2019

Sep30,2018

%ChangeQuarter Ended

Net revenues $ 15.4 $ 14.6 5.5 %Cost of sales 15.5 15.8 (1.9)Store operating expenses 0.1 0.3 (66.7)Other operating expenses 5.2 3.8 36.8Depreciation and amortization expenses 37.3 39.2 (4.8)General and administrative expenses 267.4 296.7 (9.9)Restructuring and impairments (0.9) 6.2 nm

Total operating expenses 324.6 362.0 (10.3)Operatingloss $ (309.2) $ (347.4) (11.0)%

Year Ended Net revenues:

Company-operated stores $ — $ 66.7 nmLicensed stores — 1.2 nmOther 66.3 54.5 21.7

Totalnetrevenues 66.3 122.4 (45.8)Cost of sales 67.3 84.9 (20.7)Store operating expenses 0.3 41.3 (99.3)Other operating expenses 18.6 18.3 1.6Depreciation and amortization expenses 156.7 157.1 (0.3)General and administrative expenses 1,170.8 1,086.7 7.7Restructuring and impairments 19.7 135.9 (85.5)

Total operating expenses 1,433.4 1,524.2 (6.0)Operatingloss $ (1,367.1) $ (1,401.8) (2.5)%

Corporate and Other primarily consists of our unallocated corporate operating expenses, Evolution Fresh and formerly, the Teavana retail business.

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14

STARBUCKSCORPORATIONCONSOLIDATEDBALANCESHEETS

(unaudited, in millions, except per share data)

Sep29,2019

Sep30,2018

ASSETS Current assets:

Cash and cash equivalents $ 2,686.6 $ 8,756.3Short-term investments 70.5 181.5Accounts receivable, net 879.2 693.1Inventories 1,529.4 1,400.5Prepaid expenses and other current assets 488.2 1,462.8

Total current assets 5,653.9 12,494.2Long-term investments 220.0 267.7Equity investments 396.0 334.7Property, plant and equipment, net 6,431.7 5,929.1Deferred income taxes, net 1,765.8 134.7Other long-term assets 479.6 412.2Other intangible assets 781.8 1,042.2Goodwill 3,490.8 3,541.6TOTAL ASSETS $ 19,219.6 $ 24,156.4

LIABILITIESANDEQUITY Current liabilities:

Accounts payable $ 1,189.7 $ 1,179.3Accrued liabilities 3,499.5 2,298.4Insurance reserves 210.5 213.7Stored value card liability and current portion of deferred revenue 1,269.0 1,642.9Current portion of long-term debt — 349.9

Total current liabilities 6,168.7 5,684.2Long-term debt 11,167.0 9,090.2Deferred revenue 6,744.4 6,775.7Other long-term liabilities 1,370.5 1,430.5

Total liabilities 25,450.6 22,980.6Shareholders’ equity:

Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,184.6 and1,309.1 shares, respectively 1.2 1.3Additional paid-in capital 41.1 41.1Retained earnings/(deficit) (5,771.2) 1,457.4Accumulated other comprehensive loss (503.3) (330.3)

Total shareholders’ equity/(deficit) (6,232.2) 1,169.5Noncontrolling interests 1.2 6.3

Total equity/(deficit) (6,231.0) 1,175.8TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT) $ 19,219.6 $ 24,156.4

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15

STARBUCKSCORPORATIONCONSOLIDATEDSTATEMENTSOFCASHFLOWS

(unaudited and in millions)

FiscalYearEndedSep29,2019

Sep30,2018

Oct1,2017

OPERATING ACTIVITIES: Net earnings including noncontrolling interests $ 3,594.6 $ 4,518.0 $ 2,884.9Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization 1,449.3 1,305.9 1,067.1Deferred income taxes, net (1,495.4) 714.9 95.1Income earned from equity method investees (250.6) (242.8) (310.2)Distributions received from equity method investees 216.8 226.8 186.6Gain resulting from acquisition of joint venture — (1,376.4) —Net gain resulting from divestiture of certain retail operations (622.8) (499.2) (93.5)Stock-based compensation 308.0 250.3 176.0Goodwill impairments 10.5 37.6 87.2Other 187.9 89.0 68.9Cash provided by changes in operating assets and liabilities:

Accounts receivable (197.7) 131.0 (96.8)Inventories (173.0) (41.2) 14.0Prepaid expenses and other current assets 922.0 (839.5) (20.0)Income taxes payable 1,237.1 146.0 (91.9)Accounts payable 31.9 391.6 46.4Deferred revenue (30.5) 7,109.4 130.8Other operating assets and liabilities (141.1) 16.4 107.2

Net cash provided by operating activities 5,047.0 11,937.8 4,251.8INVESTING ACTIVITIES: Purchases of investments (190.4) (191.9) (674.4)Sales of investments 298.3 459.0 1,054.5Maturities and calls of investments 59.8 45.3 149.6Acquisitions, net of cash acquired — (1,311.3) —Additions to property, plant and equipment (1,806.6) (1,976.4) (1,519.4)Net proceeds from the divestiture of certain operations 684.3 608.2 85.4Other (56.2) 5.6 54.3Net cash used by investing activities (1,010.8) (2,361.5) (850.0)FINANCING ACTIVITIES: Proceeds from issuance of long-term debt 1,996.0 5,584.1 750.2Repayments of long-term debt (350.0) — (400.0)Proceeds from issuance of common stock 409.8 153.9 150.8Cash dividends paid (1,761.3) (1,743.4) (1,450.4)Repurchase of common stock (10,222.3) (7,133.5) (2,042.5)Minimum tax withholdings on share-based awards (111.6) (62.7) (82.8)Other (17.5) (41.2) (4.4)Net cash used by financing activities (10,056.9) (3,242.8) (3,079.1)Effect of exchange rate changes on cash and cash equivalents (49.0) (39.5) 10.8Net increase/(decrease) in cash and cash equivalents (6,069.7) 6,294.0 333.5CASH AND CASH EQUIVALENTS: Beginning of period 8,756.3 2,462.3 2,128.8

End of period $ 2,686.6 $ 8,756.3 $ 2,462.3

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Interest, net of capitalized interest $ 299.5 $ 137.1 $ 96.6Income taxes, net of refunds $ 470.1 $ 1,176.9 $ 1,389.1

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16

SupplementalInformation

The following supplemental information is provided for historical and comparative purposes.

U.S.SupplementalData

QuarterEnded ($ in millions) Sep29,2019 Sep30,2018 Change(%)

Revenues $4,245.9 $3,908.7 9%Comparable Store Sales Growth (1) 6% 4%

Change in Transactions 3% (1%) Change in Ticket 3% 5%

Store Count 15,049 14,612 3%(1) Includes only Starbucks® company-operated stores open 13 months or longer. The results from Siren Retail operations are not reflected in comparable storesales.

ChinaSupplementalData

QuarterEnded ($ in millions) Sep29,2019 Sep30,2018 Change(%)

Revenues $763.0 $669.6 14%Comparable Store Sales Growth (1) 5% 1%

Change in Transactions 2% (2%) Change in Ticket 3% 3%

Store Count 4,125 3,522 17%(1) Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effect of fluctuations in foreign currencyexchange rates and Siren Retail stores.

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17

StoreData

Netstoresopened/(closed)andtransferredduringtheperiod QuarterEnded YearEnded Storesopenasof

Sep29,2019

Sep30,2018

Sep29,2019

Sep30,2018

Sep29,2019

Sep30,2018

Americas: Company-operated stores 117 96 284 275 9,974 9,690Licensed stores 97 156 323 624 8,093 7,770TotalAmericas 214 252 607 899 18,067 17,460

International (1): Company-operated stores 214 175 209 2,079 5,860 5,651Licensed stores 202 187 1,128 (680) 7,329 6,201TotalInternational 416 362 1,337 1,399 13,189 11,852

Corporate and Other (2): Company-operated stores — — — (288) — —Licensed stores — (10) (12) (25) — 12TotalCorporateandOther — (10) (12) (313) — 12

TotalCompany 630 604 1,932 1,985 31,256 29,324(1) International store data includes the transfer of 82 company-operated retail stores in France and the Netherlands to licensed stores in the second quarter of fiscal2019, the transfer of 377 company-operated stores in Thailand to licensed stores as a result of the sale of operations toward the end of the third quarter of fiscal2019 and the transfer of 1,477 licensed stores in East China to company-operated retail stores as a result of the purchase of our East China joint venture onDecember 31, 2017.(2) Corporate and Other store data includes the closure of 313 Teavana retail stores in fiscal 2018 and 12 Teavana retail stores in the first quarter of fiscal 2019.

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18

Non-GAAPDisclosure

In addition to the GAAP results provided in this release, the company provides certain non-GAAP financial measures that are not in accordance with, oralternatives for, generally accepted accounting principles in the United States. Our non-GAAP financial measures of non-GAAP G&A, non-GAAP operatingincome, non-GAAP operating income growth, non-GAAP operating margin, non-GAAP effective tax rate and non-GAAP EPS exclude the below-listed items andtheir related tax impacts, as they do not contribute to a meaningful evaluation of the company's future operating performance or comparisons to the company's pastoperating performance. The GAAP measures most directly comparable to non-GAAP G&A, non-GAAP operating income, non-GAAP operating income growth,non-GAAP operating margin, non-GAAP effective tax rate and non-GAAP EPS are general and administrative expenses, operating income, operating incomegrowth, operating margin, effective tax rate and diluted net earnings per share, respectively.

Non-GAAPExclusion RationaleEast China acquisition-related gain Management excludes the gain on the purchase of our East China joint venture as this incremental gain was specific to

the purchase activity and for reasons discussed above.Sale of Taiwan joint venture operations Management excludes the gain related to the sale of our Taiwan joint venture operations as this incremental gain was

specific to the sale activity and for reasons discussed above.Sale of Tazo brand Management excludes the net gain on the sale of our assets associated with our Tazo brand and associated transaction

costs as these items do not reflect future gains, losses, costs or tax benefits and for reasons discussed above.Sale of certain retail operations Management excludes the gains and net loss related to the sale of our Thailand, France, the Netherlands and Brazil

retail operations as these items do not reflect future gains, losses or tax impacts for reasons discussed above.Restructuring, impairment andoptimization costs

Management excludes restructuring charges and business process optimization costs related to strategic shifts in itsTeavana, U.S., International, e-commerce and other business units. Additionally, management excludes expensesrelated to divesting certain lower-margin businesses and assets, such as closure of certain company-operated stores andSwitzerland intangible asset impairments. Management excludes these items for reasons discussed above. Theseexpenses are anticipated to be completed within a finite period of time.

Transaction and integration-related costs Management excludes transaction and integration costs and amortization of the acquired intangible assets for reasonsdiscussed above. Additionally, the majority of these costs will be recognized over a finite period of time.

2018 U.S. stock award Management excludes the incremental stock-based compensation award granted in the third quarter of fiscal 2018 forreasons discussed above.

Nestlé transaction-related costs Management excludes the transaction-related costs associated with Nestlé for reasons discussed above.Other tax matters On December 22, 2017, the Tax Cuts and Jobs Act was signed into U.S. law. Management excludes the estimated

transition tax on undistributed foreign earnings, the impacts of estimated incremental foreign withholding taxes onexpected repatriated earnings and the re–measurement of deferred tax assets and liabilities due to the reduction of theU.S. federal corporate income tax rate for reasons discussed above.

Non-GAAP G&A, non-GAAP operating income, non-GAAP operating income growth, non-GAAP operating margin, non-GAAP effective tax rate and non-GAAPEPS may have limitations as analytical tools. These measures should not be considered in isolation or as a substitute for analysis of the company's results asreported under GAAP. Other companies may calculate these non-GAAP financial measures differently than the company does, limiting the usefulness of thosemeasures for comparative purposes.

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19

STARBUCKSCORPORATIONRECONCILIATIONOFSELECTEDGAAPMEASURESTONON-GAAPMEASURES

(unaudited)

($ in millions) QuarterEnded

ConsolidatedSep29,2019

Sep30,2018 Change

General and administrative expenses, as reported (GAAP) $ 458.4 $ 444.9 3.0%Restructuring, impairment and optimization costs (1) 0.2 (5.1) International transaction and integration-related items (2) (8.0) (4.0) 2018 U.S. stock award (3) — (24.1) Nestlé transaction-related costs 0.1 (9.7)

Non-GAAP G&A $ 450.7 $ 402.0 12.1%

Operating income, as reported (GAAP) $ 1,083.3 $ 956.6 13.2%Restructuring, impairment and optimization costs (1) 12.8 50.0 International transaction and integration-related items (2) 64.5 63.1 2018 U.S. stock award (3) — 24.1 Nestlé transaction-related costs 0.1 49.3

Non-GAAP operating income $ 1,160.7 $ 1,143.1 1.5%

Operating margin, as reported (GAAP) 16.1% 15.2% 90 bpsRestructuring, impairment and optimization costs (1) 0.2 0.8 International transaction and integration-related items (2) 0.9 1.0 2018 U.S. stock award (3) — 0.4 Nestlé transaction-related costs — 0.8

Non-GAAP operating margin 17.2% 18.1% (90) bps

Diluted net earnings per share, as reported (GAAP) $ 0.67 $ 0.56 19.6%Restructuring, impairment and optimization costs (1) 0.01 0.04 International transaction and integration-related items (2) 0.05 0.05 2018 U.S. stock award (3) — 0.02 Nestlé transaction-related costs — 0.04 Other tax matters (4) — 0.01 Income tax effect on Non-GAAP adjustments (5) (0.03) (0.09)

Non-GAAP EPS $ 0.70 $ 0.62 12.9%(1) Represents costs associated with our restructuring efforts, primarily severance, lease termination costs and asset impairments related to certain company-

operated store closures, as well as business process optimization costs, largely consulting fees.(2) Includes transaction costs for the acquisition of our East China joint venture and the divestitures of our Taiwan joint venture and Thailand retail operations;

ongoing amortization expense of acquired intangible assets associated with the acquisition of East China and Starbucks Japan; and the related post-acquisitionintegration costs, such as incremental information technology and compensation-related costs.

(3) Represents incremental stock-based compensation award for U.S. partners (employees).(4) Represents the estimated impact of the U.S. Tax Cuts and Jobs Act, specifically the transition tax on undistributed foreign earnings, estimated incremental

foreign withholding taxes on expected repatriated earnings and the re-measurement of deferred taxes.(5) Adjustments were determined based on the nature of the underlying items and their relevant jurisdictional tax rates.

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20

Q4QTDFY19NON-GAAPDISCLOSUREDETAILS(Pretax $ in millions and USD)

Q4 QTD FY19 Americas InternationalChannel

Development CorporateandOther Consolidated

StatementofEarningsLineItem

Restructuring,Impairmentand

OptimizationCosts

InternationalTransactionandIntegrationCosts

Restructuring,Impairmentand

OptimizationCostsNestléTransaction-

RelatedCosts

InternationalTransactionandIntegrationCosts

NestléTransaction-RelatedCosts

Restructuring,Impairment&

OptimizationCostsTotalNon-GAAP

Adjustment

Net revenue

Cost of sales (0.2) (0.2)

Store operating expenses 3.4 3.4

Other operating expenses 1.4 0.3 (0.1) 1.6Depreciation and amortizationexpenses 53.1 53.1General and administrativeexpenses (0.4) 7.7 0.3 0.3 (0.1) (0.1) 7.7

Restructuring and impairments 0.7 12.0 (0.9) 11.8

Income from equity investees Total impact to operating income (0.3) (64.2) (13.7) (0.3) (0.3) 0.2 1.2 (77.4)

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21

($ in millions) YearEnded


Sep30,2018 Change

General and administrative expenses, as reported (GAAP) $ 1,824.1 $ 1,708.2 6.8%Restructuring, impairment and optimization costs (1) (9.3) (10.0) International transaction and integration-related items (2) (29.7) (38.0) 2018 U.S. stock award (3) (61.3) (45.8) Nestlé transaction-related costs (1.8) (16.9) Sale of certain retail operations transaction costs — (1.1) Sale of Tazo brand — (2.2)

Non-GAAP G&A $ 1,722.0 $ 1,594.2 8.0%

Operating income, as reported (GAAP) $ 4,077.9 $ 3,883.3 5.0%Restructuring, impairment and optimization costs (1) 146.2 239.0 International transaction and integration-related items (2) 262.0 224.2 2018 U.S. stock award (3) 61.3 45.8 Nestlé transaction-related costs 12.6 61.3 Sale of certain retail operations transaction costs — 1.6 Sale of Tazo brand — 2.2

Non-GAAP operating income $ 4,560.0 $ 4,457.4 2.3%

Operating margin, as reported (GAAP) 15.4% 15.7% (30) bpsRestructuring, impairment and optimization costs (1) 0.6 1.0 International transaction and integration-related items (2) 1.0 0.9 2018 U.S. stock award (3) 0.2 0.2 Nestlé transaction-related costs — 0.3

Non-GAAP operating margin 17.2% 18.0% (80) bps

Diluted net earnings per share, as reported (GAAP) $ 2.92 $ 3.24 (9.9)%East China acquisition-related gain — (0.99) Sale of Taiwan joint venture operations — (0.11) Sale of Tazo brand — (0.25) Gain on sale of certain retail operations (0.51) 0.01 Restructuring, impairment and optimization costs (1) 0.12 0.17 International transaction and integration-related items (2) 0.21 0.16 2018 U.S. stock award (3) 0.05 0.03 Nestlé transaction-related costs 0.01 0.04 Other tax matters (4) 0.06 0.13 Income tax effect on Non-GAAP adjustments (5) (0.03) (0.02)

Non-GAAP EPS $ 2.83 $ 2.42 16.9%(1) Represents costs associated with our restructuring efforts, primarily severance, lease termination costs and asset impairments related to certain company-

operated store closures, as well as business process optimization costs, largely consulting fees.(2) Includes transaction costs for the acquisition of our East China joint venture and the divestitures of our Taiwan joint venture and Thailand retail operations;

ongoing amortization expense of acquired intangible assets associated with the acquisition of East China and Starbucks Japan; and the related post-acquisitionintegration costs, such as incremental information technology and compensation-related costs.

(3) Represents incremental stock-based compensation award for U.S. partners (employees).(4) Represents the estimated impact of the U.S. Tax Cuts and Jobs Act, specifically the transition tax on undistributed foreign earnings, estimated incremental

foreign withholding taxes on expected repatriated earnings and the re-measurement of deferred taxes.(5) Adjustments were determined based on the nature of the underlying items and their relevant jurisdictional tax rates.

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22

YTDFY19NON-GAAPDISCLOSUREDETAILS(Pretax $ in millions and USD)

Q4 YTD FY19 Americas International ChannelDevelopment CorporateandOther Consolidated

StatementofEarningsLineItem

Restructuring,ImpairmentandOptimization

Costs

InternationalTransactionandIntegration

Costs


Costs



Costs

InternationalTransaction

andIntegrationCosts


2018U.S.StockAward

Restructuring,Impairment&Optimization

Costs

TotalNon-GAAP

Adjustment

Net revenue

Cost of sales (0.4) (0.4)

Store operating expenses (0.1) 17.0 0.0 16.9

Other operating expenses 0.0 3.6 10.8 0.2 14.6Depreciation and amortizationexpenses 213.1 213.1General and administrativeexpenses (1.5) 29.1 4.9 0.6 1.8 61.3 5.9 102.1

Restructuring and impairments 56.9 59.2 19.7 135.8

Income from equity investees Total impact to operating income (55.3) (259.2) (67.7) (10.8) (0.2) (0.6) (1.8) (61.3) (25.2) (482.1)

Non-Operating gains

Gains resulting from divestiture of certain operations (622.8)

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23

YearEnded


(Projected)

Operating Income Growth (GAAP) 15 - 17%International transaction and integration-related items (1) (1)%Restructuring, impairment and optimization costs

(4)%2018 U.S. stock award (2)%

Non-GAAP Operating Income Growth 8 - 10%

Diluted net earnings per share (GAAP) $ 2.84 - 2.89International transaction and integration-related items (1) 0.21Restructuring, impairment and optimization costs

—Income tax effect on Non-GAAP adjustments (2) (0.05)

Non-GAAP EPS $ 3.00 - 3.05

(1) Includes ongoing amortization expense of acquired intangible assets associated with the acquisition of our East China joint venture and Starbucks Japan; andthe related post-acquisition integration costs, such as incremental information technology and compensation-related costs.

(2) Adjustments were determined based on the nature of the underlying items and their relevant jurisdictional tax rates.

#

Exhibit99.2Q42019RE-SEGMENTATIONANDSTATEMENTSOFEARNINGSRECLASSIFICATIONS

In the fourth quarter of fiscal 2019, we realigned Starbucks operating segment reporting structure to better reflect the cumulative effect of our streamlining efforts.Specifically, our previous China/Asia Pacific ("CAP") segment and Europe, Middle East, and Africa ("EMEA") segment have been combined into oneInternational segment. We will continue to provide supplemental information on our two lead growth markets, the U.S. and China, in our quarterly earnings newsreleases in accordance with our "Growth at Scale" agenda.

Concurrently, results of Siren Retail, a non-reportable operating segment consisting of Starbucks ReserveTM Roastery & Tasting Rooms, Starbucks Reserve brandand Princi operations, which was previously included within Corporate and Other, is now reported within the Americas and International segments based on thegeographical location of the operations.

Further, to better support the review of our results, we have changed the classification of certain costs. The most significant change is the reclassification ofcompany-operated store occupancy costs from cost of sales to store operating expenses. We have also made certain other immaterial changes. Thesereclassifications have been retrospectively applied.

There was no impact to consolidated net revenues, consolidated operating income, or net earnings per share as a result of these changes.

Concurrent with the change in reportable segments and reclassification of certain operating expenses noted above, we have revised our prior period financialinformation to be consistent with the current period presentation.

The tables below present our consolidated and reportable segment results, as recast, net of intersegment eliminations (unaudited, in millions):

QuarterEnded FiscalYearEnded

Consolidated(GAAP)Dec31,2017

Apr1,2018

Jul1,2018

Sep30,2018

Sep30,2018

Net revenues: Company-operated stores $ 4,741.8 $ 4,828.0 $ 5,060.4 $ 5,060.1 $ 19,690.3Licensed stores 682.4 625.6 660.6 683.6 2,652.2Other 649.5 578.2 589.3 559.9 2,377.0

Total net revenues 6,073.7 6,031.8 6,310.3 6,303.6 24,719.5Cost of sales 1,988.7 1,947.8 1,975.4 2,018.7 7,930.7Store operating expenses 2,255.8 2,365.8 2,412.5 2,438.1 9,472.2Other operating expenses 132.9 124.9 135.9 161.2 554.9Depreciation and amortization expenses 258.8 331.6 330.0 326.6 1,247.0General and administrative expenses 383.2 407.2 472.8 444.9 1,708.2Restructuring and impairments 27.6 134.7 16.9 45.2 224.4

Total operating expenses 5,047.0 5,312.0 5,343.5 5,434.7 21,137.4Income from equity investees 89.4 52.7 71.4 87.7 301.2Operating income $ 1,116.1 $ 772.5 $ 1,038.2 $ 956.6 $ 3,883.3Operating margin 18.4% 12.8% 16.5% 15.2% 15.7%

Q42019RE-SEGMENTATIONANDSTATEMENTSOFEARNINGSRECLASSIFICATIONS


Consolidated(Non-GAAP)Dec31,2017

Apr1,2018

Jul1,2018

Sep30,2018

Sep30,2018

Net revenues: Company-operated stores $ 4,741.8 $ 4,828.0 $ 5,060.4 $ 5,060.1 $ 19,690.3Licensed stores 682.4 625.6 660.6 683.6 2,652.2Other 649.5 578.2 589.3 559.9 2,377.0

Total net revenues 6,073.7 6,031.8 6,310.3 6,303.6 24,719.5Cost of sales 1,984.3 1,950.1 1,975.9 2,018.7 7,929.1Store operating expenses 2,254.3 2,363.8 2,411.1 2,431.6 9,460.9Other operating expenses 132.9 122.1 130.6 121.6 507.2Depreciation and amortization expenses 246.9 276.1 274.6 274.3 1,071.9General and administrative expenses 377.2 395.3 419.6 402.0 1,594.2Restructuring and impairments — — — — —

Total operating expenses 4,995.6 5,107.4 5,211.8 5,248.2 20,563.3Income from equity investees 89.4 52.7 71.4 87.7 301.2Operating income $ 1,167.5 $ 977.1 $ 1,169.9 $ 1,143.1 $ 4,457.4Operating margin 19.2% 16.2% 18.5% 18.1% 18.0%



Americas(GAAP)Dec31,2017

Apr1,2018

Jul1,2018

Sep30,2018

Sep30,2018

Net revenues: Company-operated stores $ 3,790.0 $ 3,568.1 $ 3,773.0 $ 3,790.3 $ 14,921.5Licensed stores 466.7 429.3 452.0 466.1 1,814.0Other 3.9 2.2 3.5 3.5 13.1

Total net revenues $ 4,260.6 $ 3,999.6 $ 4,228.5 $ 4,259.9 $ 16,748.6Cost of sales 1,250.5 1,181.0 1,211.8 1,240.8 4,884.1Store operating expenses 1,796.3 1,777.9 1,827.2 1,847.2 7,248.6Other operating expenses 38.9 34.3 37.0 41.0 151.2Depreciation and amortization expenses 158.3 160.8 160.2 161.7 641.0General and administrative expenses 64.5 74.2 100.4 66.0 305.1Restructuring and impairments 1.6 0.9 18.4 12.4 33.4

Total operating expenses 3,310.1 3,229.1 3,355.0 3,369.1 13,263.4Operating income $ 950.5 $ 770.5 $ 873.5 $ 890.8 $ 3,485.2Operating margin 22.3% 19.3% 20.7% 20.9% 20.8%


Americas(Non-GAAP)Dec31,2017

Apr1,2018

Jul1,2018

Sep30,2018

Sep30,2018

Net revenues: Company-operated stores $ 3,790.0 $ 3,568.1 $ 3,773.0 $ 3,790.3 $ 14,921.5Licensed stores 466.7 429.3 452.0 466.1 1,814.0Other 3.9 2.2 3.5 3.5 13.1

Total net revenues 4,260.6 3,999.6 4,228.5 4,259.9 16,748.6Cost of sales 1,250.5 1,181.0 1,211.8 1,240.8 4,884.1Store operating expenses 1,796.3 1,777.4 1,827.2 1,847.5 7,248.3Other operating expenses 38.9 34.3 37.2 41.0 151.4Depreciation and amortization expenses 158.3 160.8 160.2 161.7 641.0General and administrative expenses 64.5 73.1 100.4 67.1 305.1Restructuring and impairments — — — — —

Total operating expenses 3,308.5 3,226.6 3,336.8 3,358.1 13,229.9Operating income $ 952.1 $ 773.0 $ 891.7 $ 901.8 $ 3,518.7Operating margin 22.3% 19.3% 21.1% 21.2% 21.0%



International(GAAP)Dec31,2017

Apr1,2018

Jul1,2018

Sep30,2018

Sep30,2018

Net revenues: Company-operated stores $ 898.5 $ 1,246.5 $ 1,287.4 $ 1,269.8 $ 4,702.1Licensed stores 214.6 196.3 208.6 217.5 837.0Other 3.1 3.8 2.8 2.5 12.1

Total net revenues 1,116.2 1,446.6 1,498.8 1,489.8 5,551.2Cost of sales 371.4 449.3 440.9 447.8 1,709.4Store operating expenses 427.7 579.1 584.9 590.6 2,182.3Other operating expenses 26.5 26.2 21.9 24.4 98.9Depreciation and amortization expenses 61.3 130.9 129.8 125.6 447.6General and administrative expenses 60.4 67.5 95.7 78.9 302.5Restructuring and impairments — 28.5 — 26.6 55.1

Total operating expenses 947.3 1,281.5 1,273.2 1,293.9 4,795.8Income from equity investees 50.7 16.7 23.5 26.5 117.4Operating income $ 219.6 $ 181.8 $ 249.1 $ 222.4 $ 872.8Operating margin 19.7% 12.6% 16.6% 14.9% 15.7%


International(Non-GAAP)Dec31,2017

Apr1,2018

Jul1,2018

Sep30,2018

Sep30,2018

Net revenues: Company-operated stores $ 898.5 $ 1,246.5 $ 1,287.4 $ 1,269.8 $ 4,702.1Licensed stores 214.6 196.3 208.6 217.5 837.0Other 3.1 3.8 2.8 2.5 12.1

Total net revenues 1,116.2 1,446.6 1,498.8 1,489.8 5,551.2Cost of sales 371.4 449.3 440.9 447.8 1,709.4Store operating expenses 426.2 577.6 583.5 583.8 2,171.2Other operating expenses 26.5 23.4 22.1 24.4 96.3Depreciation and amortization expenses 49.4 75.4 74.4 73.3 272.5General and administrative expenses 58.9 60.6 73.0 73.8 266.3Restructuring and impairments — — — — —

Total operating expenses 932.4 1,186.3 1,193.9 1,203.1 4,515.7Income from equity investees 50.7 16.7 23.5 26.5 117.4Operating income $ 234.5 $ 277.0 $ 328.4 $ 313.2 $ 1,152.9Operating margin 21.0% 19.1% 21.9% 21.0% 20.8%



ChannelDevelopment(GAAP)Dec31,2017

Apr1,2018

Jul1,2018

Sep30,2018

Sep30,2018

Total net revenues $ 628.0 $ 562.6 $ 567.4 $ 539.3 $ 2,297.3Cost of sales 330.7 302.8 304.6 314.3 1,252.3Other operating expenses 62.4 58.1 74.0 92.0 286.5Depreciation and amortization expenses 0.6 0.3 0.2 0.1 1.3General and administrative expenses 3.4 3.4 3.7 3.3 13.9

Total operating expenses 397.1 364.6 382.5 409.7 1,554.0Income from equity investees 38.7 36.0 47.9 61.2 183.8Operating income $ 269.6 $ 234.0 $ 232.8 $ 190.8 $ 927.1Operating margin 42.9% 41.6% 41.0% 35.4% 40.4%


ChannelDevelopment(Non-GAAP)Dec31,2017

Apr1,2018

Jul1,2018

Sep30,2018

Sep30,2018

Total net revenues $ 628.0 $ 562.6 $ 567.4 $ 539.3 $ 2,297.3Cost of sales 330.7 302.8 304.6 314.3 1,252.3Other operating expenses 62.4 58.1 68.4 52.4 241.3Depreciation and amortization expenses 0.6 0.3 0.2 0.1 1.3General and administrative expenses 3.4 3.4 4.7 3.3 14.9Restructuring and impairments — — — — —

Total operating expenses 397.1 364.6 377.9 370.1 1,509.8Income from equity investees 38.7 36.0 47.9 61.2 183.8Operating income $ 269.6 $ 234.0 $ 237.4 $ 230.4 $ 971.3Operating margin 42.9% 41.6% 41.8% 42.7% 42.3%



CorporateandOther(GAAP)Dec31,2017

Apr1,2018

Jul1,2018

Sep30,2018

Sep30,2018

Net revenues: Company-operated stores $ 53.3 $ 13.4 $ — $ — $ 66.7Licensed stores 1.1 — — — 1.2Other 14.5 9.6 15.6 14.6 54.5

Total net revenues 68.9 23.0 15.6 14.6 122.4Cost of sales 36.1 14.7 18.1 15.8 84.9Store operating expenses 31.8 8.8 0.4 0.3 41.3Other operating expenses 5.1 6.3 3.0 3.8 18.3Depreciation and amortization expenses 38.6 39.6 39.8 39.2 157.1General and administrative expenses 254.9 262.1 273.0 296.7 1,086.7Restructuring and impairments 26.0 105.3 (1.5) 6.2 135.9

Total operating expenses 392.5 436.8 332.8 362.0 1,524.2Operating loss $ (323.6) $ (413.8) $ (317.2) $ (347.4) $ (1,401.8)


CorporateandOther(Non-GAAP)Dec31,2017

Apr1,2018

Jul1,2018

Sep30,2018

Sep30,2018

Net revenues: Company-operated stores $ 53.3 $ 13.4 $ — $ — $ 66.7Licensed stores 1.1 — — — 1.2Other 14.5 9.6 15.6 14.6 54.5

Total net revenues 68.9 23.0 15.6 14.6 122.4Cost of sales 31.7 17.0 18.6 15.8 83.3Store operating expenses 31.8 8.8 0.4 0.3 41.4Other operating expenses 5.1 6.3 2.9 3.8 18.2Depreciation and amortization expenses 38.6 39.6 39.8 39.2 157.1General and administrative expenses 250.4 258.2 241.5 257.8 1,007.9Restructuring and impairments — — — — —

Total operating expenses 357.6 329.9 303.2 316.9 1,307.9Operating loss $ (288.7) $ (306.9) $ (287.6) $ (302.3) $ (1,185.5)


QuarterEnded

Consolidated(GAAP)Dec30,2018

Mar31,2019

Jun30,2019

Net revenues: Company-operated stores $ 5,370.3 $ 5,159.0 $ 5,535.0Licensed stores 737.1 678.2 725.0Other 525.3 468.7 563.0

Total net revenues 6,632.7 6,305.9 6,823.0Cost of sales 2,175.8 2,012.0 2,199.6Store operating expenses 2,586.8 2,554.1 2,643.2Other operating expenses 97.6 87.1 94.4Depreciation and amortization expenses 333.4 356.2 343.1General and administrative expenses 448.0 458.1 459.7Restructuring and impairments 43.2 43.0 37.7

Total operating expenses 5,684.8 5,510.5 5,777.7Income from equity investees 67.8 62.3 76.0Operating income $ 1,015.7 $ 857.7 $ 1,121.3Operating margin 15.3% 13.6% 16.4%

QuarterEnded

Consolidated(Non-GAAP)Dec30,2018

Mar31,2019

Jun30,2019


Total net revenues 6,632.7 6,305.9 6,823.0Cost of sales 2,176.0 2,012.0 2,199.6Store operating expenses 2,582.1 2,550.3 2,638.3Other operating expenses 92.6 82.8 90.6Depreciation and amortization expenses 281.0 302.2 289.5General and administrative expenses 415.1 421.8 434.4Restructuring and impairments — — —

Total operating expenses 5,546.8 5,369.1 5,652.4Income from equity investees 67.8 62.3 76.0Operating income $ 1,153.7 $ 999.1 $ 1,246.6Operating margin 17.4% 15.8% 18.3%


QuarterEnded

Americas(GAAP)Dec30,2018

Mar31,2019

Jun30,2019


Total net revenues 4,612.5 4,314.1 4,681.1Cost of sales 1,351.3 1,220.5 1,324.0Store operating expenses 1,983.1 1,935.7 2,034.0Other operating expenses 44.5 39.4 41.7Depreciation and amortization expenses 166.9 173.0 175.6General and administrative expenses 75.1 70.9 72.0Restructuring and impairments 22.9 18.2 15.1

Total operating expenses 3,643.8 3,457.7 3,662.4Operating income $ 968.7 $ 856.4 $ 1,018.7Operating margin 21.0% 19.9% 21.8%

QuarterEnded

Americas(Non-GAAP)Dec30,2018

Mar31,2019

Jun30,2019


Total net revenues 4,612.5 4,314.1 4,681.1Cost of sales 1,351.3 1,220.5 1,324.0Store operating expenses 1,983.2 1,935.7 2,034.0Other operating expenses 44.7 39.2 41.7Depreciation and amortization expenses 166.9 173.0 175.6General and administrative expenses 75.7 70.9 72.4Restructuring and impairments — — —

Total operating expenses 3,621.8 3,439.3 3,647.7Operating income $ 990.7 $ 874.8 $ 1,033.4Operating margin 21.5% 20.3% 22.1%


QuarterEnded

International(GAAP)Dec30,2018

Mar31,2019

Jun30,2019


Total net revenues 1,504.0 1,529.4 1,585.3Cost of sales 462.7 470.2 476.1Store operating expenses 603.7 618.4 609.2Other operating expenses 31.3 26.3 26.7Depreciation and amortization expenses 127.0 130.4 127.7General and administrative expenses 69.3 80.2 86.0Restructuring and impairments 6.4 24.2 16.6

Total operating expenses 1,300.4 1,349.7 1,342.3Income from equity investees 26.4 22.1 27.2Operating income $ 230.0 $ 201.8 $ 270.2Operating margin 15.3% 13.2% 17.0%

QuarterEnded

International(Non-GAAP)Dec30,2018

Mar31,2019

Jun30,2019


Total net revenues 1,504.0 1,529.4 1,585.3Cost of sales 462.7 470.2 476.1Store operating expenses 598.9 614.6 604.3Other operating expenses 31.4 26.2 24.4Depreciation and amortization expenses 74.6 76.4 74.1General and administrative expenses 66.3 69.1 74.2Restructuring and impairments — — —

Total operating expenses 1,233.9 1,256.5 1,253.1Income from equity investees 26.4 22.1 27.2Operating income $ 296.5 $ 295.0 $ 359.4Operating margin 19.7% 19.3% 22.7%


QuarterEnded

ChannelDevelopment(GAAP)Dec30,2018

Mar31,2019

Jun30,2019

Total net revenues $ 504.6 $ 446.6 $ 533.3Cost of sales 348.4 305.4 377.1Other operating expenses 18.6 17.1 20.2Depreciation and amortization expenses — 12.3 0.2General and administrative expenses 3.2 3.1 2.7

Total operating expenses 370.2 337.9 400.2Income from equity investees 41.4 40.2 48.8Operating income $ 175.8 $ 148.9 $ 181.9Operating margin 34.8% 33.3% 34.1%

QuarterEnded

ChannelDevelopment(Non-GAAP)Dec30,2018

Mar31,2019

Jun30,2019

Total net revenues $ 504.6 $ 446.6 $ 533.3Cost of sales 348.4 305.4 377.1Other operating expenses 13.3 13.1 18.7Depreciation and amortization expenses — 12.3 0.2General and administrative expenses 3.2 3.1 2.7

Total operating expenses 364.9 333.9 398.7Income from equity investees 41.4 40.2 48.8Operating income $ 181.1 $ 152.9 $ 183.4Operating margin 35.9% 34.2% 34.4%


QuarterEnded

CorporateandOther(GAAP)Dec30,2018

Mar31,2019

Jun30,2019

Total net revenues $ 11.6 $ 15.8 $ 23.3Cost of sales 13.4 15.9 22.4Store operating expenses — — —Other operating expenses 3.2 4.3 5.8Depreciation and amortization expenses 39.5 40.5 39.6General and administrative expenses 300.4 303.9 299.0Restructuring and impairments 13.9 0.6 6.0

Total operating expenses 370.4 365.2 372.8Operating loss $ (358.8) $ (349.4) $ (349.5)

QuarterEnded

CorporateandOther(Non-GAAP)Dec30,2018

Mar31,2019

Jun30,2019

Total net revenues $ 11.6 $ 15.8 $ 23.3Cost of sales 13.6 15.9 22.4Store operating expenses — — —Other operating expenses 3.2 4.3 5.8Depreciation and amortization expenses 39.5 40.5 39.6General and administrative expenses 269.9 278.7 285.1Restructuring and impairments — — —

Total operating expenses 326.2 339.4 352.9Operating loss $ (314.6) $ (323.6) $ (329.6)


Certain metrics have been updated to reflect our new segment reporting structure, including the International segment's comparable store sales. Comparable storesales include Starbucks® company-operated stores open 13 months or longer. Comparable store sales do not reflect the effect of fluctuations in foreign currencyexchange rates and results from global Siren Retail operations.


InternationalDec31,2017

Apr1,2018

Jul1,2018

Sep30,2018

Sep30,2018

Comparable Store Sales Growth —% 2 % (1)% 1 % 1 %Change in Transactions —% (1)% (3)% (1)% (1)%Change in Ticket 1% 3 % 2 % 2 % 2 %

QuarterEnded

InternationalDec30,2018

Mar31,2019

Jun30,2019

Comparable Store Sales Growth 2% 2% 5%Change in Transactions 1% —% 1%Change in Ticket 1% 2% 3%


Under our new segment reporting structure, U.S. and China revenue and store count now include the results of Siren Retail operations. The new structure did notresult in any change to previously reported comparable store sales growth, which continues to only include Starbucks® company-operated stores open 13 months orlonger and does not reflect the effect of fluctuations in foreign currency exchange rates.

QuarterEnded

U.S.SupplementalDataDec30,2018

Mar31,2019

Jun30,2019

Revenue $ 4,216.0 $ 3,955.3 $ 4,288.1Comparable Store Sales Growth(1) 4% 4% 7%

Change in Transactions —% —% 3%Change in Ticket 4% 4% 3%

Store Count 14,767 14,787 14,883(1) Includes only Starbucks® company-operated stores open 13 months or longer. The results from Siren Retail operations are not reflected in comparable storesales.

QuarterEnded

ChinaSupplementalDataDec30,2018

Mar31,2019

Jun30,2019

Revenue $ 657.7 $ 708.6 $ 735.2Comparable Store Sales Growth(2) — % 2 % 6%

Change in Transactions (2)% (1)% 2%Change in Ticket 2 % 3 % 4%

Store Count 3,685 3,791 3,924(2) Includes only Starbucks® company-operated stores open 13 months or longer. The effect of fluctuations in foreign currency exchange rates and results fromSiren Retail operations are not reflected in comparable store sales.

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