SEATTLE–(BUSINESS WIRE)–Feb. 8, 2006–Today at Starbucks Corporation’s (Nasdaq:SBUX) Annual Meeting of Shareholders, in Seattle’s Marion Oliver McCaw Hall and Exhibition Hall, more than 5,000 shareholders were in attendance to enthusiastically share in the Company’s fiscal 2005 successes and learn how Starbucks plans on achieving its aggressive fiscal 2006 goals.
The Company’s record-breaking numbers in fiscal 2005 have proved impressive for Starbucks and its shareholders with consolidated net revenues of $6.4 billion, an increase of 20 percent from $5.3 billion in fiscal 2004. Net earnings for fiscal 2005 increased 27 percent to
$494 million, and the Company realized 14 consecutive years of comparable store sales growth of five percent or greater. The strong year was followed by a robust fiscal 2006 first quarter, leading Starbucks to raise its fiscal 2006 earnings per share target to
$0.68 – $0.70.
“Every year we set very challenging financial and growth targets,” said Howard Schultz, Starbucks chairman. “And each year — for the past 14 years — I’ve been honored to report to you on behalf of all Starbucks partners (employees) that we have not only accomplished our goals, but have proven that starting with the best cup of coffee served to one customer at a time, we can connect with our neighbors, build stronger communities, improve the well-being of others across the globe and help take care of our environment.”
In fiscal 2005, Starbucks successfully extended its brand through the introduction of innovative new products and new distribution channels, while also introducing the Starbucks Experience to new countries. With every successful milestone, the Company reaffirmed its commitment to its customers, partners and communities in which Starbucks operates.
Fiscal 2005 Highlights
— Acquired Ethos(TM) Water and made a commitment to donate $10
million to support clean water projects around the world over
five years (2005-2010).
— Introduced Starbucks(TM) Coffee Liqueur and Starbucks(TM)
Cream Liqueur. Starbucks(TM) Coffee Liqueur was recognized as
“The Best New Product of 2005” by Market Watch, a national
alcohol beverage industry publication.
— Introduced a unique, limited edition Starbucks Card bearing
the image of Seattle Mariners superstar, Ichiro Suzuki, with
Major League Baseball. This first-ever commemorative Starbucks
Card benefits children’s charities in the United States and
Japan.
— Launched Starbucks Discoveries(TM), a ready-to-drink (RTD)
chilled coffee beverage, in Japan and Taiwan.
— Together with the African Wildlife Foundation, announced the
launch of the “Coffee for Conservation” project, aimed at
promoting coffee quality, environmental sustainability and
natural resource conservation in East Africa.
— Purchased 11.5 million pounds of Fair Trade Certified(TM)
coffee and became North America’s largest purchaser of Fair
Trade Certified(TM) coffee.
— Opened stores in three new countries, including the Bahamas,
Ireland and Jordan, allowing us to serve customers in 37
countries through more than 10,800 stores around the world.
“As we move steadfastly toward our long-term goal of having at least 30,000 stores worldwide, with at least 15,000 locations outside the U.S., it is imperative that we continue to foster a spirit of discovery and adhere to the Starbucks culture, values and mission on which the Company was built,” said Jim Donald, Starbucks president and ceo.
Fiscal 2006 Targets
— Starbucks plans to open at least 1,800 new stores on a global
basis in fiscal 2006. In the United States, Starbucks plans to
open approximately 700 Company-operated locations and 600
licensed locations. In International markets, Starbucks plans
to open approximately 150 Company-operated stores and 350
licensed stores.
— The Company is targeting total net revenue growth of
approximately 20 percent on a quarterly and full year basis.
The Company continues to expect comparable store sales growth
in the range of three percent to seven percent for the
remainder of fiscal 2006, with monthly anomalies.
— Starbucks is targeting earnings per share of $0.68 – $0.70 for
fiscal 2006. The Company raised its original target range by
$0.05 on February 1, 2006. The new target range includes
stock-based compensation expense estimated at approximately
$0.09 per share.
About Starbucks Coffee Company
Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world, with more than 10,500 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. The Company is committed to offering the highest quality coffee and the Starbucks Experience while conducting its business in ways that produce social, environmental and economic benefits for communities in which it does business. In addition to its retail operations, the Company produces and sells bottled Starbucks
Frappuccino(R) coffee drinks, Starbucks DoubleShot(R) espresso drink, and a line of superpremium ice creams through its joint-venture partnerships. The Company’s brand portfolio provides a wide variety of consumer products — innovative superpremium Tazo(R) teas and exceptional Starbucks Hear Music(TM) compact discs enhance the Starbucks Experience through best-of-class products. The Seattle’s Best Coffee(R) and Torrefazione Italia(R) Coffee brands enable Starbucks to appeal to a broader consumer base by offering an alternative variety of coffee flavor profiles.
This release includes the following forward-looking statements:
anticipated store openings, comparable store sales expectations, trends in or expectations regarding the Company’s net revenue, estimated stock-based compensation expense and earnings per share results. These forward-looking statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, coffee, dairy and other raw material prices and availability, successful execution of internal performance and expansion plans, fluctuations in U.S. and international economies and currencies, the impact of initiatives by competitors, the effect of legal proceedings, and other risks detailed in the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of Starbucks Annual Report on Form 10-K for the fiscal year ended October 2, 2005. The Company assumes no obligation to update any of these forward-looking statements.
(C) 2006 Starbucks Coffee Company. All rights reserved.
Meeting b-roll footage will be available for download at IA-6, Transponder 21(C-Band) Downlink Frequency: 4120 Vertical Audio 6.2/6.8 on Wednesday, February 8, from 10 a.m. (PT)/1 p.m. (ET) and 1 p.m.
(PT)/4 p.m. (ET).
Copyright Business Wire 2006
