Starbucks 2013 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 2013 Starbucks annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

Dear Shareholders,
I
am honored to share with you that Starbucks has once again delivered record performance in scal
2013, exceeding expectations on almost all fronts as we continued to drive growth across geographies,
categories, and our multiple channels of distribution. As you review the highlights of our 42nd year, I hope
you will agree that we are achieving our goals in ways in which we can all be extremely proud.
In scal 2013, Starbucks consolidated revenues reached a record $14.9 billion, a 12 percent increase over
last year driven by a 7 percent rise in global comparable store sales and the opening of 1,701 net new
stores around the globe. Our non-GAAP operating income* was $2.5 billion, a 23 percent increase, with
record non-GAAP operating margin* of 16.5 percent, an impressive 150 basis points higher than last year.
This strong revenue growth, coupled with excellent margin improvement, led to record non-GAAP
earnings per share* of $2.26, up 26 percent over scal 2012. Through dividends and share repurchases,
Starbucks returned a record $1.2 billion of cash to you, our shareholders.
Today, Starbucks is healthier and more diverse than at any time in our history. In addition to the incredibly
hard work of our more than 200,000 partners (employees) who proudly wear the green apron, as well
as our leaders in Seattle and throughout the world, our success would not be possible without our bold,
strategic vision; a dedication to disruptive innovation and operational excellence; and a foundation of
strong values. Together, these tenets are driving our performance.
Our Foundational Values
A distinctive set of values has always shaped how we engage our customers, our partners, and the
communities where we do business. This past year, given the tenuous economic and political environment
we continued to observe in the U.S. and around the world, Starbucks was particularly cognizant of our
responsibility to stay true to our guiding principles, and to lead by example.
The complexity of these times requires, in my view, that businesses complement their main goal of
protability with actions that can help our society move forward in ways that benet as many people as
possible. With this in mind, those of us who lead public companies, in particular, have a duty to share our
organizations’ success with our people and reach out to the communities we serve, in addition to creating
shareholder value.
* Fiscal 2013 non-GAAP operating income, non-GAAP operating margin and non-GAAP earnings per share exclude a pretax charge of $2.8 billion resulting from
the conclusion of the arbitration with Kraft Foods Global, Inc. For GAAP results and a reconciliation of GAAP to non-GAAP measures, please see the Fiscal 2013
Financial Highlights on page iv of this 2013 annual report. i.