What changed in this filing

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Item 5. Market for Registrant’s Common Equity

2021-11-19 compared with 2020-11-12 · 8 added, 96 removed, 14 unchanged (88% of the section changed)

5 unchanged sentences

This does not include persons whose stock is in nominee or “street name” accounts through brokers.

Future decisions to pay cash dividends continue to be at the discretion of the Board of Directors and will be dependent on our operating performance, financial condition, capital expenditure requirements and other factors that the Board of Directors considers relevant.

Future decisions to pay comparable cash dividends continue to be at the discretion of the Board of Directors and will be dependent on our operating performance, financial condition, capital expenditure requirements and other factors that the Board of Directors considers relevant.

ISSUER PURCHASES OF EQUITY SECURITIES

Shares under our ongoing share repurchase program may be repurchased in open market transactions, including pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, or through privately negotiated transactions.

The timing, manner, price and amount of repurchases will be determined at our discretion, and the share repurchase program may be suspended, terminated or modified at any time for any reason.

On April 8, 2020, we announced a temporary suspension of our share repurchase program.

Repurchases pursuant to this program were last made in March 2020.

During the fourth fiscal quarter ended September 27, 2020, there was no share repurchase activity.

During the fiscal year ended October 3, 2021, there was no share repurchase activity.

As of October 3, 2021, 48.9 million shares remained available for repurchase under current authorizations.

Due to our business recovery and restoration of certain leverage metrics, we have resumed our share repurchase program in the first quarter of fiscal 2022.

Performance Comparison Graph

The following graph depicts the total return to shareholders from September 27, 2015 through September 27, 2020, relative to the performance of the Standard & Poor’s 500 Index, the NASDAQ Composite Index and the Standard & Poor’s 500 Consumer Discretionary Sector, a peer group that includes Starbucks.

All indices shown in the graph have been reset to a base of 100 as of September 27, 2015, and assume an investment of $100 on that date and the reinvestment of dividends paid since that date.

The following graph depicts the total return to shareholders from October 2, 2016, through October 3, 2021, relative to the performance of the Standard & Poor’s 500 Index, the NASDAQ Composite Index and the Standard & Poor’s 500 Consumer Discretionary Sector, a peer group that includes Starbucks.

All indices shown in the graph have been reset to a base of 100 as of October 2, 2016, and assume an investment of $100 on that date and the reinvestment of dividends paid since that date.

The stock price performance shown in the graph is not necessarily indicative of future price performance.

Sep 27, 2015 Oct 2, 2016 Oct 1, 2017 Sep 30, 2018 Sep 29, 2019 Sep 27, 2020

Oct 2, 2016 Oct 1, 2017 Sep 30, 2018 Sep 29, 2019 Sep 27, 2020 Oct 3, 2021

Starbucks Corporation $ 100.00 $ 100.98 $ 109.35 $ 173.26 $ 168.68 $ 229.83

2 unchanged sentences

S&P Consumer Discretionary 100.00 114.52 151.78 155.36 200.25 238.59

Selected Financial Data

The following selected financial data is derived from the consolidated financial statements.

The data below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Risk Factors,” and the consolidated financial statements and notes.

Financial Information (in millions, except per share data):

As of and for the Fiscal Year Ended (1)

(52 Wks) Sept 29,

(52 Wks) Sept 30,

(52 Wks) Oct 1,

(52 Wks) Oct 2,

Results of Operations

Net revenues:

Company-operated stores $ 19,164.6 $ 21,544.4 $ 19,690.3 $ 17,650.7 $ 16,844.1

Licensed stores

2,327.1 2,875.0 2,652.2 2,355.0 2,154.2

2,026.3 2,089.2 2,377.0 2,381.1 2,317.6

Total net revenues $ 23,518.0 $ 26,508.6 $ 24,719.5 $ 22,386.8 $ 21,315.9

Operating income $ 1,561.7 $ 4,077.9 $ 3,883.3 $ 4,134.7 $ 4,171.9

Net earnings including noncontrolling interests (2)

924.7 3,594.6 4,518.0 2,884.9 2,818.9

Net earnings/(loss) attributable to noncontrolling interests (3.6) (4.6) (0.3) 0.2 1.2

Net earnings attributable to Starbucks (2)

928.3 3,599.2 4,518.3 2,884.7 2,817.7

EPS — diluted (2)

0.79 2.92 3.24 1.97 1.90

Cash dividends declared per share (3)

1.23 1.49 1.32 1.05 0.85

Net cash provided by operating activities (4)

1,597.8 5,047.0 11,937.8 4,251.8 4,697.9

Capital expenditures (additions to property, plant and equipment) 1,483.6 1,806.6 1,976.4 1,519.4 1,440.3

Balance Sheet

Total assets $ 29,374.5 $ 19,219.6 $ 24,156.4 $ 14,365.6 $ 14,312.5

Long-term debt (including current portion) 15,909.5 11,167.0 9,440.1 3,932.6 3,585.2

Shareholders’ equity/(deficit) (7,805.1) (6,232.2) 1,169.5 5,450.1 5,884.0

(1) Our fiscal year ends on the Sunday closest to September 30.

The fiscal year ending on October 2, 2016 included 53 weeks, with the 53 rd week falling in our fourth fiscal quarter.

(2) Fiscal 2018 results include a gain not subject to income tax of $1.4 billion resulting from the acquisition of our East China joint venture.

The impact of the gain to our diluted EPS was $0.99.

(3) Subsequent to our year-end, on September 30, 2020, we declared a cash dividend of $0.45 per share payable on November 27, 2020 to shareholders of record on November 12, 2020.

(4) Net cash provided by operating activities for fiscal 2016 and fiscal 2017 has been adjusted for the adoption of new accounting guidance related to excess tax benefits as discussed in Note 1 , Summary of Significant Accounting Policies.

Comparable Store Sales:

Fiscal Year Ended Sep 27,

Percentage change in comparable store sales (1)

Sales growth (12) % 5 % 2 % 3 % 6 %

Change in transactions (21) % 2 % (1) % — % 1 %

Change in ticket 11 % 3 % 3 % 4 % 5 %

International (2)

Sales growth (19) % 3 % 1 % 2 % 2 %

Change in transactions (23) % 1 % (1) % 1 % 1 %

Change in ticket 5 % 2 % 2 % 1 % 1 %

Sales growth (14) % 5 % 2 % 3 % 5 %

Change in transactions (22) % 1 % (1) % — % 1 %

Change in ticket 10 % 3 % 3 % 3 % 4 %

(1) Includes only Starbucks ® company-operated stores open 13 months or longer.

Comparable store sales exclude the effect of fluctuations in foreign currency exchange rates and the results of our global Siren Retail operations.

For fiscal year 2016, comparable store sales percentages were calculated excluding the 53 rd week.

For fiscal year 2020, stores that were temporarily closed or operating at reduced hours due to the COVID-19 outbreak remained in comparable store sales while stores identified for permanent closure were removed.

(2) Beginning in February of fiscal 2019, comparable store sales include the results of 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 in the first quarter of fiscal 2018.

Beginning in December of fiscal 2016, comparable store sales include the results of the 1,009 company-operated stores acquired as part of the acquisition of Starbucks Japan in the first quarter of fiscal 2015.

Store Count Data:

As of and for the Fiscal Year Ended Sept 27,

(52 Wks) Sept 29,

(52 Wks) Sept 30,

(52 Wks) Oct 1,

(52 Wks) Oct 2,

Net stores opened/(closed) and transferred during the year:

Company-operated stores 135 284 275 395 348

Licensed stores 152 323 624 558 456

International (2)

Company-operated stores 668 209 2,079 238 145

Licensed stores 449 1,128 (680) 1,130 1,116

Corporate and Other (3)

Company-operated stores — — (288) (69) (17)

Licensed stores — (12) (25) 2 (6)

Total 1,404 1,932 1,985 2,254 2,042

Stores open at year end:

Company-operated stores 10,109 9,974 9,690 9,415 9,020

Licensed stores 8,245 8,093 7,770 7,146 6,588

International (2)

Company-operated stores 6,528 5,860 5,651 3,572 3,334

Licensed stores 7,778 7,329 6,201 6,881 5,751

Corporate and Other (3)

Company-operated stores — — — 288 357

Licensed stores — — 12 37 35

Total 32,660 31,256 29,324 27,339 25,085

(1) Americas store data includes the transfer of 112 company-operated retail stores in Brazil to licensed stores as a result of the sale of our Brazil retail operations in the second quarter of fiscal 2018.

(2) International store data includes in fiscal 2019 the transfer of 82 company-operated stores in France and the Netherlands to licensed stores as a result of the sales of operations in the second quarter and the transfer of 377 company-operated stores in Thailand to licensed stores as a result of the sale of operations late in the third quarter.

Additionally, store data includes 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 in the first quarter of fiscal 2018, the transfer of 133 Singapore stores from company-operated stores to licensed stores in fiscal 2017 and the transfer of 144 Germany company-operated stores to licensed stores in fiscal 2016.

(3) 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.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 5. Market for Registrant’s Common Equity