(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
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)) |
Title | Trading Symbol | Name of each exchange on which registered |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
STARBUCKS CORPORATION | ||||
Dated: | October 30, 2019 | |||
By: | /s/ Patrick J. Grismer | |||
Patrick J. Grismer | ||||
executive vice president, chief financial officer |
• | 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 in comparable 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% from Streamline-driven activities |
◦ | Streamline-driven activities include the licensing of our CPG and Foodservice businesses to Nestlé following the close of the transaction on August 26, 2018, and the conversion of certain international retail operations from company-operated to licensed 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 in wages 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 point unfavorable impact from Streamline-driven activities, non-GAAP operating margin declined by approximately 60 basis points compared to the prior year |
• | GAAP Earnings Per Share of $0.67, up 20% over the prior year |
◦ | 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 |
• | 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 in comparable transactions |
◦ | International comparable store sales up 3%, driven by a 2% increase in average ticket and a 1% increase in comparable transactions; 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 point unfavorable impact from Streamline-driven activities, non-GAAP operating margin declined by approximately 10 basis points compared 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 $12.0 billion to shareholders through a combination of share repurchases and dividends |
Quarter Ended | Change (%) | ||||
($ in millions) | Sep 29, 2019 | Sep 30, 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 | $890.8 | 5% | ||
Operating Margin | 20.2% | 20.9% | (70) bps | ||
(1) Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effect of fluctuations in foreign currency exchange rates and Siren Retail stores. |
Quarter Ended | Change (%) | ||||
($ in millions) | Sep 29, 2019 | Sep 30, 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 | $222.4 | 18% | ||
Operating Margin | 16.7% | 14.9% | 180 bps | ||
(1) Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effect of fluctuations in foreign currency exchange rates and Siren Retail stores. |
Quarter Ended | Change (%) | ||||
($ in millions) | Sep 29, 2019 | Sep 30, 2018 | |||
Revenues | $508.1 | $539.3 | (6)% | ||
Operating Income | $190.9 | $190.8 | —% | ||
Operating Margin | 37.6% | 35.4% | 220 bps |
• | 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 |
1. | In July, Starbucks opened its first Starbucks NowTM store in Beijing, China. The new express store format integrates Starbucks store environment with the company's Mobile Order & Pay technology and Starbucks® Delivers into one seamless and convenient experience for customers. |
2. | In September, Starbucks hosted over 12,000 store managers and field operations leaders at its largest ever Leadership Experience. The three-day conference held in Chicago was designed to help strengthen leadership capabilities and solidify the foundation of an enduring company. |
3. | In September, Starbucks welcomed three new appointees to its Board of Directors: Richard E. Allison, Jr., Chief Executive Officer of Domino's; Andrew Campion, Executive Vice President and Chief Financial Officer of Nike; and Isabel Ge Mahe, Apple's Vice President and 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 for purchase 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 shareholders of record as of November 13, 2019. |
Starbucks Contact, Investor Relations: | Starbucks Contact, Media: | |
Durga Doraisamy | Reggie Borges | |
206-318-7118 | 206-318-7100 | |
investorrelations@starbucks.com | press@starbucks.com |
Quarter Ended | Quarter Ended | ||||||||||||||||
Sep 29, 2019 | Sep 30, 2018 | % Change | Sep 29, 2019 | Sep 30, 2018 | |||||||||||||
As a % of total net revenues | |||||||||||||||||
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 | |||||||||||
Total net revenues | 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 | ||||||||||||
Operating income | 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 | — | — | |||||||||||
Net earnings attributable to Starbucks | $ | 802.9 | $ | 755.8 | 6.2 | 11.9 | % | 12.0 | % | ||||||||
Net earnings per common share - 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 | |||||||||||||
Supplemental Ratios: | |||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 49.4 | % | 48.2 | % | |||||||||||||
Effective tax rate including noncontrolling interests | 20.1 | % | 18.8 | % |
Year Ended | Year Ended | ||||||||||||||||
Sep 29, 2019 | Sep 30, 2018 | % Change | Sep 29, 2019 | Sep 30, 2018 | |||||||||||||
As a % of total net revenues | |||||||||||||||||
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 | |||||||||||
Total net revenues | 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 | |||||||||||
Operating income | 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 | — | — | ||||||||||
Net earnings attributable to Starbucks | $ | 3,599.2 | $ | 4,518.3 | (20.3 | ) | 13.6 | % | 18.3 | % | |||||||
Net earnings per common share - 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 | |||||||||||||
Supplemental Ratios: | |||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 48.7 | % | 48.1 | % | |||||||||||||
Effective tax rate including noncontrolling interests | 19.5 | % | 21.8 | % |
Sep 29, 2019 | Sep 30, 2018 | % Change | Sep 29, 2019 | Sep 30, 2018 | |||||||||||||
Quarter Ended | As a % of Americas total net revenues | ||||||||||||||||
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 | |||||||||||
Total net revenues | 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 | ||||||||||||
Operating income | $ | 938.9 | $ | 890.8 | 5.4 | % | 20.2 | % | 20.9 | % | |||||||
Supplemental Ratio: | |||||||||||||||||
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 | |||||||||||
Total net revenues | 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 | ||||||||||||
Operating income | $ | 3,782.8 | $ | 3,485.2 | 8.5 | % | 20.7 | % | 20.8 | % | |||||||
Supplemental Ratio: | |||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 49.5 | % | 48.6 | % |
Sep 29, 2019 | Sep 30, 2018 | % Change | Sep 29, 2019 | Sep 30, 2018 | |||||||||||||
Quarter Ended | As a % of International total net revenues | ||||||||||||||||
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 | ||||||||||||
Total net revenues | 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 | ||||||||||||
Operating income | $ | 262.7 | $ | 222.4 | 18.1 | % | 16.7 | % | 14.9 | % | |||||||
Supplemental Ratio: | |||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 45.4 | % | 46.5 | % | |||||||||||||
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 | ||||||||||||
Total net revenues | 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 | |||||||||||
Operating income | $ | 964.7 | $ | 872.8 | 10.5 | % | 15.6 | % | 15.7 | % | |||||||
Supplemental Ratio: | |||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 46.2 | % | 46.4 | % |
Sep 29, 2019 | Sep 30, 2018 | % Change | Sep 29, 2019 | Sep 30, 2018 | |||||||||||||
Quarter Ended | As a % of Channel Development net revenues | ||||||||||||||||
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 | ||||||||||||
Operating income | $ | 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 | ||||||||||||
Operating income | $ | 697.5 | $ | 927.1 | (24.8 | )% | 35.0 | % | 40.4 | % |
Sep 29, 2019 | Sep 30, 2018 | % Change | ||||||||
Quarter 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 | 36.8 | |||||||
Depreciation 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 | ) | ||||||
Operating loss | $ | (309.2 | ) | $ | (347.4 | ) | (11.0 | )% | ||
Year Ended | ||||||||||
Net revenues: | ||||||||||
Company-operated stores | $ | — | $ | 66.7 | nm | |||||
Licensed stores | — | 1.2 | nm | |||||||
Other | 66.3 | 54.5 | 21.7 | |||||||
Total net revenues | 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 | 1.6 | |||||||
Depreciation and amortization expenses | 156.7 | 157.1 | (0.3 | ) | ||||||
General and administrative expenses | 1,170.8 | 1,086.7 | 7.7 | |||||||
Restructuring and impairments | 19.7 | 135.9 | (85.5 | ) | ||||||
Total operating expenses | 1,433.4 | 1,524.2 | (6.0 | ) | ||||||
Operating loss | $ | (1,367.1 | ) | $ | (1,401.8 | ) | (2.5 | )% |
Sep 29, 2019 | Sep 30, 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 2,686.6 | $ | 8,756.3 | |||
Short-term investments | 70.5 | 181.5 | |||||
Accounts receivable, net | 879.2 | 693.1 | |||||
Inventories | 1,529.4 | 1,400.5 | |||||
Prepaid expenses and other current assets | 488.2 | 1,462.8 | |||||
Total current assets | 5,653.9 | 12,494.2 | |||||
Long-term investments | 220.0 | 267.7 | |||||
Equity investments | 396.0 | 334.7 | |||||
Property, plant and equipment, net | 6,431.7 | 5,929.1 | |||||
Deferred income taxes, net | 1,765.8 | 134.7 | |||||
Other long-term assets | 479.6 | 412.2 | |||||
Other intangible assets | 781.8 | 1,042.2 | |||||
Goodwill | 3,490.8 | 3,541.6 | |||||
TOTAL ASSETS | $ | 19,219.6 | $ | 24,156.4 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,189.7 | $ | 1,179.3 | |||
Accrued liabilities | 3,499.5 | 2,298.4 | |||||
Insurance reserves | 210.5 | 213.7 | |||||
Stored value card liability and current portion of deferred revenue | 1,269.0 | 1,642.9 | |||||
Current portion of long-term debt | — | 349.9 | |||||
Total current liabilities | 6,168.7 | 5,684.2 | |||||
Long-term debt | 11,167.0 | 9,090.2 | |||||
Deferred revenue | 6,744.4 | 6,775.7 | |||||
Other long-term liabilities | 1,370.5 | 1,430.5 | |||||
Total liabilities | 25,450.6 | 22,980.6 | |||||
Shareholders’ equity: | |||||||
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,184.6 and 1,309.1 shares, respectively | 1.2 | 1.3 | |||||
Additional paid-in capital | 41.1 | 41.1 | |||||
Retained earnings/(deficit) | (5,771.2 | ) | 1,457.4 | ||||
Accumulated other comprehensive loss | (503.3 | ) | (330.3 | ) | |||
Total shareholders’ equity/(deficit) | (6,232.2 | ) | 1,169.5 | ||||
Noncontrolling interests | 1.2 | 6.3 | |||||
Total equity/(deficit) | (6,231.0 | ) | 1,175.8 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT) | $ | 19,219.6 | $ | 24,156.4 |
Fiscal Year Ended | Sep 29, 2019 | Sep 30, 2018 | Oct 1, 2017 | ||||||||
OPERATING ACTIVITIES: | |||||||||||
Net earnings including noncontrolling interests | $ | 3,594.6 | $ | 4,518.0 | $ | 2,884.9 | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 1,449.3 | 1,305.9 | 1,067.1 | ||||||||
Deferred income taxes, net | (1,495.4 | ) | 714.9 | 95.1 | |||||||
Income earned from equity method investees | (250.6 | ) | (242.8 | ) | (310.2 | ) | |||||
Distributions received from equity method investees | 216.8 | 226.8 | 186.6 | ||||||||
Gain 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 | 176.0 | ||||||||
Goodwill impairments | 10.5 | 37.6 | 87.2 | ||||||||
Other | 187.9 | 89.0 | 68.9 | ||||||||
Cash provided by changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (197.7 | ) | 131.0 | (96.8 | ) | ||||||
Inventories | (173.0 | ) | (41.2 | ) | 14.0 | ||||||
Prepaid 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 | 46.4 | ||||||||
Deferred revenue | (30.5 | ) | 7,109.4 | 130.8 | |||||||
Other operating assets and liabilities | (141.1 | ) | 16.4 | 107.2 | |||||||
Net cash provided by operating activities | 5,047.0 | 11,937.8 | 4,251.8 | ||||||||
INVESTING ACTIVITIES: | |||||||||||
Purchases of investments | (190.4 | ) | (191.9 | ) | (674.4 | ) | |||||
Sales of investments | 298.3 | 459.0 | 1,054.5 | ||||||||
Maturities and calls of investments | 59.8 | 45.3 | 149.6 | ||||||||
Acquisitions, 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 | 85.4 | ||||||||
Other | (56.2 | ) | 5.6 | 54.3 | |||||||
Net 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 | 750.2 | ||||||||
Repayments of long-term debt | (350.0 | ) | — | (400.0 | ) | ||||||
Proceeds from issuance of common stock | 409.8 | 153.9 | 150.8 | ||||||||
Cash 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 | ) | 10.8 | ||||||
Net increase/(decrease) in cash and cash equivalents | (6,069.7 | ) | 6,294.0 | 333.5 | |||||||
CASH 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 | $ | 96.6 | |||||
Income taxes, net of refunds | $ | 470.1 | $ | 1,176.9 | $ | 1,389.1 |
Quarter Ended | |||||
($ in millions) | Sep 29, 2019 | Sep 30, 2018 | Change (%) | ||
Revenues | $4,245.9 | $3,908.7 | 9% | ||
Comparable Store Sales Growth (1) | 6% | 4% | |||
Change in Transactions | 3% | (1%) | |||
Change in Ticket | 3% | 5% | |||
Store Count | 15,049 | 14,612 | 3% | ||
(1) Includes only Starbucks® company-operated stores open 13 months or longer. The results from Siren Retail operations are not reflected in comparable store sales. |
Quarter Ended | |||||
($ in millions) | Sep 29, 2019 | Sep 30, 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 currency exchange rates and Siren Retail stores. |
Net stores opened/(closed) and transferred during the period | |||||||||||||||||
Quarter Ended | Year Ended | Stores open as of | |||||||||||||||
Sep 29, 2019 | Sep 30, 2018 | Sep 29, 2019 | Sep 30, 2018 | Sep 29, 2019 | Sep 30, 2018 | ||||||||||||
Americas: | |||||||||||||||||
Company-operated stores | 117 | 96 | 284 | 275 | 9,974 | 9,690 | |||||||||||
Licensed stores | 97 | 156 | 323 | 624 | 8,093 | 7,770 | |||||||||||
Total Americas | 214 | 252 | 607 | 899 | 18,067 | 17,460 | |||||||||||
International (1): | |||||||||||||||||
Company-operated stores | 214 | 175 | 209 | 2,079 | 5,860 | 5,651 | |||||||||||
Licensed stores | 202 | 187 | 1,128 | (680 | ) | 7,329 | 6,201 | ||||||||||
Total International | 416 | 362 | 1,337 | 1,399 | 13,189 | 11,852 | |||||||||||
Corporate and Other (2): | |||||||||||||||||
Company-operated stores | — | — | — | (288 | ) | — | — | ||||||||||
Licensed stores | — | (10 | ) | (12 | ) | (25 | ) | — | 12 | ||||||||
Total Corporate and Other | — | (10 | ) | (12 | ) | (313 | ) | — | 12 | ||||||||
Total Company | 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 fiscal 2019, 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 fiscal 2019 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 on December 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. |
Non-GAAP Exclusion | Rationale |
East 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 and optimization costs | Management excludes restructuring charges and business process optimization costs related to strategic shifts in its Teavana, U.S., International, e-commerce and other business units. Additionally, management excludes expenses related to divesting certain lower-margin businesses and assets, such as closure of certain company-operated stores and Switzerland intangible asset impairments. Management excludes these items for reasons discussed above. These expenses 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 reasons discussed 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 for reasons 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 on expected repatriated earnings and the re–measurement of deferred tax assets and liabilities due to the reduction of the U.S. federal corporate income tax rate for reasons discussed above. |
($ in millions) | Quarter Ended | ||||||||
Consolidated | Sep 29, 2019 | Sep 30, 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 bps | ||||
Restructuring, 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-acquisition integration 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. |
Q4 QTD FY19 NON-GAAP DISCLOSURE DETAILS (Pretax $ in millions and USD) | ||||||||
Q4 QTD FY19 | Americas | International | Channel Development | Corporate and Other | Consolidated | |||
Statement of Earnings Line Item | Restructuring, Impairment and Optimization Costs | International Transaction and Integration Costs | Restructuring, Impairment and Optimization Costs | Nestlé Transaction-Related Costs | International Transaction and Integration Costs | Nestlé Transaction- Related Costs | Restructuring, Impairment & Optimization Costs | Total Non-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) | 1.6 | ||||
Depreciation and amortization expenses | 53.1 | 53.1 | ||||||
General and administrative expenses | (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) |
($ in millions) | Year Ended | ||||||||
Consolidated | Sep 29, 2019 | Sep 30, 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) bps | ||||
Restructuring, 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-acquisition integration 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. |
YTD FY19 NON-GAAP DISCLOSURE DETAILS (Pretax $ in millions and USD) | ||||||||||
Q4 YTD FY19 | Americas | International | Channel Development | Corporate and Other | Consolidated | |||||
Statement of Earnings Line Item | Restructuring, Impairment and Optimization Costs | International Transaction and Integration Costs | Restructuring, Impairment and Optimization Costs | Nestlé Transaction- Related Costs | Restructuring, Impairment and Optimization Costs | International Transaction and Integration Costs | Nestlé Transaction- Related Costs | 2018 U.S. Stock Award | Restructuring, Impairment & Optimization Costs | Total Non-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 | 14.6 | |||||
Depreciation and amortization expenses | 213.1 | 213.1 | ||||||||
General and administrative expenses | (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) |
Year Ended | ||
Consolidated | Sep 27, 2020 | |
(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 - 2.89 | |
International transaction and integration-related items (1) | 0.21 | |
Restructuring, 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; and the 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. |
Quarter Ended | Fiscal Year Ended | ||||||||||||||||||
Consolidated (GAAP) | Dec 31, 2017 | Apr 1, 2018 | Jul 1, 2018 | Sep 30, 2018 | Sep 30, 2018 | ||||||||||||||
Net revenues: | |||||||||||||||||||
Company-operated stores | $ | 4,741.8 | $ | 4,828.0 | $ | 5,060.4 | $ | 5,060.1 | $ | 19,690.3 | |||||||||
Licensed stores | 682.4 | 625.6 | 660.6 | 683.6 | 2,652.2 | ||||||||||||||
Other | 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 | 24,719.5 | ||||||||||||||
Cost of sales | 1,988.7 | 1,947.8 | 1,975.4 | 2,018.7 | 7,930.7 | ||||||||||||||
Store operating expenses | 2,255.8 | 2,365.8 | 2,412.5 | 2,438.1 | 9,472.2 | ||||||||||||||
Other operating expenses | 132.9 | 124.9 | 135.9 | 161.2 | 554.9 | ||||||||||||||
Depreciation and amortization expenses | 258.8 | 331.6 | 330.0 | 326.6 | 1,247.0 | ||||||||||||||
General and administrative expenses | 383.2 | 407.2 | 472.8 | 444.9 | 1,708.2 | ||||||||||||||
Restructuring 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 | 21,137.4 | ||||||||||||||
Income from equity investees | 89.4 | 52.7 | 71.4 | 87.7 | 301.2 | ||||||||||||||
Operating income | $ | 1,116.1 | $ | 772.5 | $ | 1,038.2 | $ | 956.6 | $ | 3,883.3 | |||||||||
Operating margin | 18.4 | % | 12.8 | % | 16.5 | % | 15.2 | % | 15.7 | % |
Quarter Ended | Fiscal Year Ended | ||||||||||||||||||
Consolidated (Non-GAAP) | Dec 31, 2017 | Apr 1, 2018 | Jul 1, 2018 | Sep 30, 2018 | Sep 30, 2018 | ||||||||||||||
Net revenues: | |||||||||||||||||||
Company-operated stores | $ | 4,741.8 | $ | 4,828.0 | $ | 5,060.4 | $ | 5,060.1 | $ | 19,690.3 | |||||||||
Licensed stores | 682.4 | 625.6 | 660.6 | 683.6 | 2,652.2 | ||||||||||||||
Other | 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 | 24,719.5 | ||||||||||||||
Cost of sales | 1,984.3 | 1,950.1 | 1,975.9 | 2,018.7 | 7,929.1 | ||||||||||||||
Store operating expenses | 2,254.3 | 2,363.8 | 2,411.1 | 2,431.6 | 9,460.9 | ||||||||||||||
Other operating expenses | 132.9 | 122.1 | 130.6 | 121.6 | 507.2 | ||||||||||||||
Depreciation and amortization expenses | 246.9 | 276.1 | 274.6 | 274.3 | 1,071.9 | ||||||||||||||
General and administrative expenses | 377.2 | 395.3 | 419.6 | 402.0 | 1,594.2 | ||||||||||||||
Restructuring and impairments | — | — | — | — | — | ||||||||||||||
Total operating expenses | 4,995.6 | 5,107.4 | 5,211.8 | 5,248.2 | 20,563.3 | ||||||||||||||
Income from equity investees | 89.4 | 52.7 | 71.4 | 87.7 | 301.2 | ||||||||||||||
Operating income | $ | 1,167.5 | $ | 977.1 | $ | 1,169.9 | $ | 1,143.1 | $ | 4,457.4 | |||||||||
Operating margin | 19.2 | % | 16.2 | % | 18.5 | % | 18.1 | % | 18.0 | % |
Quarter Ended | Fiscal Year Ended | ||||||||||||||||||
Americas (GAAP) | Dec 31, 2017 | Apr 1, 2018 | Jul 1, 2018 | Sep 30, 2018 | Sep 30, 2018 | ||||||||||||||
Net revenues: | |||||||||||||||||||
Company-operated stores | $ | 3,790.0 | $ | 3,568.1 | $ | 3,773.0 | $ | 3,790.3 | $ | 14,921.5 | |||||||||
Licensed stores | 466.7 | 429.3 | 452.0 | 466.1 | 1,814.0 | ||||||||||||||
Other | 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 | $ | 16,748.6 | |||||||||
Cost of sales | 1,250.5 | 1,181.0 | 1,211.8 | 1,240.8 | 4,884.1 | ||||||||||||||
Store operating expenses | 1,796.3 | 1,777.9 | 1,827.2 | 1,847.2 | 7,248.6 | ||||||||||||||
Other operating expenses | 38.9 | 34.3 | 37.0 | 41.0 | 151.2 | ||||||||||||||
Depreciation and amortization expenses | 158.3 | 160.8 | 160.2 | 161.7 | 641.0 | ||||||||||||||
General and administrative expenses | 64.5 | 74.2 | 100.4 | 66.0 | 305.1 | ||||||||||||||
Restructuring 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 | 13,263.4 | ||||||||||||||
Operating income | $ | 950.5 | $ | 770.5 | $ | 873.5 | $ | 890.8 | $ | 3,485.2 | |||||||||
Operating margin | 22.3 | % | 19.3 | % | 20.7 | % | 20.9 | % | 20.8 | % |
Quarter Ended | Fiscal Year Ended | ||||||||||||||||||
Americas (Non-GAAP) | Dec 31, 2017 | Apr 1, 2018 | Jul 1, 2018 | Sep 30, 2018 | Sep 30, 2018 | ||||||||||||||
Net revenues: | |||||||||||||||||||
Company-operated stores | $ | 3,790.0 | $ | 3,568.1 | $ | 3,773.0 | $ | 3,790.3 | $ | 14,921.5 | |||||||||
Licensed stores | 466.7 | 429.3 | 452.0 | 466.1 | 1,814.0 | ||||||||||||||
Other | 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 | 16,748.6 | ||||||||||||||
Cost of sales | 1,250.5 | 1,181.0 | 1,211.8 | 1,240.8 | 4,884.1 | ||||||||||||||
Store operating expenses | 1,796.3 | 1,777.4 | 1,827.2 | 1,847.5 | 7,248.3 | ||||||||||||||
Other operating expenses | 38.9 | 34.3 | 37.2 | 41.0 | 151.4 | ||||||||||||||
Depreciation and amortization expenses | 158.3 | 160.8 | 160.2 | 161.7 | 641.0 | ||||||||||||||
General and administrative expenses | 64.5 | 73.1 | 100.4 | 67.1 | 305.1 | ||||||||||||||
Restructuring and impairments | — | — | — | — | — | ||||||||||||||
Total operating expenses | 3,308.5 | 3,226.6 | 3,336.8 | 3,358.1 | 13,229.9 | ||||||||||||||
Operating income | $ | 952.1 | $ | 773.0 | $ | 891.7 | $ | 901.8 | $ | 3,518.7 | |||||||||
Operating margin | 22.3 | % | 19.3 | % | 21.1 | % | 21.2 | % | 21.0 | % |
Quarter Ended | Fiscal Year Ended | ||||||||||||||||||
International (GAAP) | Dec 31, 2017 | Apr 1, 2018 | Jul 1, 2018 | Sep 30, 2018 | Sep 30, 2018 | ||||||||||||||
Net revenues: | |||||||||||||||||||
Company-operated stores | $ | 898.5 | $ | 1,246.5 | $ | 1,287.4 | $ | 1,269.8 | $ | 4,702.1 | |||||||||
Licensed stores | 214.6 | 196.3 | 208.6 | 217.5 | 837.0 | ||||||||||||||
Other | 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 | 5,551.2 | ||||||||||||||
Cost of sales | 371.4 | 449.3 | 440.9 | 447.8 | 1,709.4 | ||||||||||||||
Store operating expenses | 427.7 | 579.1 | 584.9 | 590.6 | 2,182.3 | ||||||||||||||
Other operating expenses | 26.5 | 26.2 | 21.9 | 24.4 | 98.9 | ||||||||||||||
Depreciation and amortization expenses | 61.3 | 130.9 | 129.8 | 125.6 | 447.6 | ||||||||||||||
General and administrative expenses | 60.4 | 67.5 | 95.7 | 78.9 | 302.5 | ||||||||||||||
Restructuring and impairments | — | 28.5 | — | 26.6 | 55.1 | ||||||||||||||
Total operating expenses | 947.3 | 1,281.5 | 1,273.2 | 1,293.9 | 4,795.8 | ||||||||||||||
Income from equity investees | 50.7 | 16.7 | 23.5 | 26.5 | 117.4 | ||||||||||||||
Operating income | $ | 219.6 | $ | 181.8 | $ | 249.1 | $ | 222.4 | $ | 872.8 | |||||||||
Operating margin | 19.7 | % | 12.6 | % | 16.6 | % | 14.9 | % | 15.7 | % |
Quarter Ended | Fiscal Year Ended | ||||||||||||||||||
International (Non-GAAP) | Dec 31, 2017 | Apr 1, 2018 | Jul 1, 2018 | Sep 30, 2018 | Sep 30, 2018 | ||||||||||||||
Net revenues: | |||||||||||||||||||
Company-operated stores | $ | 898.5 | $ | 1,246.5 | $ | 1,287.4 | $ | 1,269.8 | $ | 4,702.1 | |||||||||
Licensed stores | 214.6 | 196.3 | 208.6 | 217.5 | 837.0 | ||||||||||||||
Other | 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 | 5,551.2 | ||||||||||||||
Cost of sales | 371.4 | 449.3 | 440.9 | 447.8 | 1,709.4 | ||||||||||||||
Store operating expenses | 426.2 | 577.6 | 583.5 | 583.8 | 2,171.2 | ||||||||||||||
Other operating expenses | 26.5 | 23.4 | 22.1 | 24.4 | 96.3 | ||||||||||||||
Depreciation and amortization expenses | 49.4 | 75.4 | 74.4 | 73.3 | 272.5 | ||||||||||||||
General and administrative expenses | 58.9 | 60.6 | 73.0 | 73.8 | 266.3 | ||||||||||||||
Restructuring and impairments | — | — | — | — | — | ||||||||||||||
Total operating expenses | 932.4 | 1,186.3 | 1,193.9 | 1,203.1 | 4,515.7 | ||||||||||||||
Income from equity investees | 50.7 | 16.7 | 23.5 | 26.5 | 117.4 | ||||||||||||||
Operating income | $ | 234.5 | $ | 277.0 | $ | 328.4 | $ | 313.2 | $ | 1,152.9 | |||||||||
Operating margin | 21.0 | % | 19.1 | % | 21.9 | % | 21.0 | % | 20.8 | % |
Quarter Ended | Fiscal Year Ended | ||||||||||||||||||
Channel Development (GAAP) | Dec 31, 2017 | Apr 1, 2018 | Jul 1, 2018 | Sep 30, 2018 | Sep 30, 2018 | ||||||||||||||
Total net revenues | $ | 628.0 | $ | 562.6 | $ | 567.4 | $ | 539.3 | $ | 2,297.3 | |||||||||
Cost of sales | 330.7 | 302.8 | 304.6 | 314.3 | 1,252.3 | ||||||||||||||
Other operating expenses | 62.4 | 58.1 | 74.0 | 92.0 | 286.5 | ||||||||||||||
Depreciation and amortization expenses | 0.6 | 0.3 | 0.2 | 0.1 | 1.3 | ||||||||||||||
General and administrative expenses | 3.4 | 3.4 | 3.7 | 3.3 | 13.9 | ||||||||||||||
Total operating expenses | 397.1 | 364.6 | 382.5 | 409.7 | 1,554.0 | ||||||||||||||
Income from equity investees | 38.7 | 36.0 | 47.9 | 61.2 | 183.8 | ||||||||||||||
Operating income | $ | 269.6 | $ | 234.0 | $ | 232.8 | $ | 190.8 | $ | 927.1 | |||||||||
Operating margin | 42.9 | % | 41.6 | % | 41.0 | % | 35.4 | % | 40.4 | % |
Quarter Ended | Fiscal Year Ended | ||||||||||||||||||
Channel Development (Non-GAAP) | Dec 31, 2017 | Apr 1, 2018 | Jul 1, 2018 | Sep 30, 2018 | Sep 30, 2018 | ||||||||||||||
Total net revenues | $ | 628.0 | $ | 562.6 | $ | 567.4 | $ | 539.3 | $ | 2,297.3 | |||||||||
Cost of sales | 330.7 | 302.8 | 304.6 | 314.3 | 1,252.3 | ||||||||||||||
Other operating expenses | 62.4 | 58.1 | 68.4 | 52.4 | 241.3 | ||||||||||||||
Depreciation and amortization expenses | 0.6 | 0.3 | 0.2 | 0.1 | 1.3 | ||||||||||||||
General and administrative expenses | 3.4 | 3.4 | 4.7 | 3.3 | 14.9 | ||||||||||||||
Restructuring and impairments | — | — | — | — | — | ||||||||||||||
Total operating expenses | 397.1 | 364.6 | 377.9 | 370.1 | 1,509.8 | ||||||||||||||
Income from equity investees | 38.7 | 36.0 | 47.9 | 61.2 | 183.8 | ||||||||||||||
Operating income | $ | 269.6 | $ | 234.0 | $ | 237.4 | $ | 230.4 | $ | 971.3 | |||||||||
Operating margin | 42.9 | % | 41.6 | % | 41.8 | % | 42.7 | % | 42.3 | % |
Quarter Ended | Fiscal Year Ended | ||||||||||||||||||
Corporate and Other (GAAP) | Dec 31, 2017 | Apr 1, 2018 | Jul 1, 2018 | Sep 30, 2018 | Sep 30, 2018 | ||||||||||||||
Net revenues: | |||||||||||||||||||
Company-operated stores | $ | 53.3 | $ | 13.4 | $ | — | $ | — | $ | 66.7 | |||||||||
Licensed stores | 1.1 | — | — | — | 1.2 | ||||||||||||||
Other | 14.5 | 9.6 | 15.6 | 14.6 | 54.5 | ||||||||||||||
Total net revenues | 68.9 | 23.0 | 15.6 | 14.6 | 122.4 | ||||||||||||||
Cost of sales | 36.1 | 14.7 | 18.1 | 15.8 | 84.9 | ||||||||||||||
Store operating expenses | 31.8 | 8.8 | 0.4 | 0.3 | 41.3 | ||||||||||||||
Other operating expenses | 5.1 | 6.3 | 3.0 | 3.8 | 18.3 | ||||||||||||||
Depreciation and amortization expenses | 38.6 | 39.6 | 39.8 | 39.2 | 157.1 | ||||||||||||||
General and administrative expenses | 254.9 | 262.1 | 273.0 | 296.7 | 1,086.7 | ||||||||||||||
Restructuring and impairments | 26.0 | 105.3 | (1.5 | ) | 6.2 | 135.9 | |||||||||||||
Total operating expenses | 392.5 | 436.8 | 332.8 | 362.0 | 1,524.2 | ||||||||||||||
Operating loss | $ | (323.6 | ) | $ | (413.8 | ) | $ | (317.2 | ) | $ | (347.4 | ) | $ | (1,401.8 | ) |
Quarter Ended | Fiscal Year Ended | ||||||||||||||||||
Corporate and Other (Non-GAAP) | Dec 31, 2017 | Apr 1, 2018 | Jul 1, 2018 | Sep 30, 2018 | Sep 30, 2018 | ||||||||||||||
Net revenues: | |||||||||||||||||||
Company-operated stores | $ | 53.3 | $ | 13.4 | $ | — | $ | — | $ | 66.7 | |||||||||
Licensed stores | 1.1 | — | — | — | 1.2 | ||||||||||||||
Other | 14.5 | 9.6 | 15.6 | 14.6 | 54.5 | ||||||||||||||
Total net revenues | 68.9 | 23.0 | 15.6 | 14.6 | 122.4 | ||||||||||||||
Cost of sales | 31.7 | 17.0 | 18.6 | 15.8 | 83.3 | ||||||||||||||
Store operating expenses | 31.8 | 8.8 | 0.4 | 0.3 | 41.4 | ||||||||||||||
Other operating expenses | 5.1 | 6.3 | 2.9 | 3.8 | 18.2 | ||||||||||||||
Depreciation and amortization expenses | 38.6 | 39.6 | 39.8 | 39.2 | 157.1 | ||||||||||||||
General and administrative expenses | 250.4 | 258.2 | 241.5 | 257.8 | 1,007.9 | ||||||||||||||
Restructuring and impairments | — | — | — | — | — | ||||||||||||||
Total operating expenses | 357.6 | 329.9 | 303.2 | 316.9 | 1,307.9 | ||||||||||||||
Operating loss | $ | (288.7 | ) | $ | (306.9 | ) | $ | (287.6 | ) | $ | (302.3 | ) | $ | (1,185.5 | ) |
Quarter Ended | |||||||||||
Consolidated (GAAP) | Dec 30, 2018 | Mar 31, 2019 | Jun 30, 2019 | ||||||||
Net revenues: | |||||||||||
Company-operated stores | $ | 5,370.3 | $ | 5,159.0 | $ | 5,535.0 | |||||
Licensed stores | 737.1 | 678.2 | 725.0 | ||||||||
Other | 525.3 | 468.7 | 563.0 | ||||||||
Total net revenues | 6,632.7 | 6,305.9 | 6,823.0 | ||||||||
Cost of sales | 2,175.8 | 2,012.0 | 2,199.6 | ||||||||
Store operating expenses | 2,586.8 | 2,554.1 | 2,643.2 | ||||||||
Other operating expenses | 97.6 | 87.1 | 94.4 | ||||||||
Depreciation and amortization expenses | 333.4 | 356.2 | 343.1 | ||||||||
General and administrative expenses | 448.0 | 458.1 | 459.7 | ||||||||
Restructuring and impairments | 43.2 | 43.0 | 37.7 | ||||||||
Total operating expenses | 5,684.8 | 5,510.5 | 5,777.7 | ||||||||
Income from equity investees | 67.8 | 62.3 | 76.0 | ||||||||
Operating income | $ | 1,015.7 | $ | 857.7 | $ | 1,121.3 | |||||
Operating margin | 15.3 | % | 13.6 | % | 16.4 | % |
Quarter Ended | |||||||||||
Consolidated (Non-GAAP) | Dec 30, 2018 | Mar 31, 2019 | Jun 30, 2019 | ||||||||
Net revenues: | |||||||||||
Company-operated stores | $ | 5,370.3 | $ | 5,159.0 | $ | 5,535.0 | |||||
Licensed stores | 737.1 | 678.2 | 725.0 | ||||||||
Other | 525.3 | 468.7 | 563.0 | ||||||||
Total net revenues | 6,632.7 | 6,305.9 | 6,823.0 | ||||||||
Cost of sales | 2,176.0 | 2,012.0 | 2,199.6 | ||||||||
Store operating expenses | 2,582.1 | 2,550.3 | 2,638.3 | ||||||||
Other operating expenses | 92.6 | 82.8 | 90.6 | ||||||||
Depreciation and amortization expenses | 281.0 | 302.2 | 289.5 | ||||||||
General and administrative expenses | 415.1 | 421.8 | 434.4 | ||||||||
Restructuring and impairments | — | — | — | ||||||||
Total operating expenses | 5,546.8 | 5,369.1 | 5,652.4 | ||||||||
Income from equity investees | 67.8 | 62.3 | 76.0 | ||||||||
Operating income | $ | 1,153.7 | $ | 999.1 | $ | 1,246.6 | |||||
Operating margin | 17.4 | % | 15.8 | % | 18.3 | % |
Quarter Ended | |||||||||||
Americas (GAAP) | Dec 30, 2018 | Mar 31, 2019 | Jun 30, 2019 | ||||||||
Net revenues: | |||||||||||
Company-operated stores | $ | 4,092.2 | $ | 3,849.6 | $ | 4,182.2 | |||||
Licensed stores | 514.6 | 463.1 | 496.3 | ||||||||
Other | 5.7 | 1.4 | 2.6 | ||||||||
Total net revenues | 4,612.5 | 4,314.1 | 4,681.1 | ||||||||
Cost of sales | 1,351.3 | 1,220.5 | 1,324.0 | ||||||||
Store operating expenses | 1,983.1 | 1,935.7 | 2,034.0 | ||||||||
Other operating expenses | 44.5 | 39.4 | 41.7 | ||||||||
Depreciation and amortization expenses | 166.9 | 173.0 | 175.6 | ||||||||
General and administrative expenses | 75.1 | 70.9 | 72.0 | ||||||||
Restructuring and impairments | 22.9 | 18.2 | 15.1 | ||||||||
Total operating expenses | 3,643.8 | 3,457.7 | 3,662.4 | ||||||||
Operating income | $ | 968.7 | $ | 856.4 | $ | 1,018.7 | |||||
Operating margin | 21.0 | % | 19.9 | % | 21.8 | % |
Quarter Ended | |||||||||||
Americas (Non-GAAP) | Dec 30, 2018 | Mar 31, 2019 | Jun 30, 2019 | ||||||||
Net revenues: | |||||||||||
Company-operated stores | $ | 4,092.2 | $ | 3,849.6 | $ | 4,182.2 | |||||
Licensed stores | 514.6 | 463.1 | 496.3 | ||||||||
Other | 5.7 | 1.4 | 2.6 | ||||||||
Total net revenues | 4,612.5 | 4,314.1 | 4,681.1 | ||||||||
Cost of sales | 1,351.3 | 1,220.5 | 1,324.0 | ||||||||
Store operating expenses | 1,983.2 | 1,935.7 | 2,034.0 | ||||||||
Other operating expenses | 44.7 | 39.2 | 41.7 | ||||||||
Depreciation and amortization expenses | 166.9 | 173.0 | 175.6 | ||||||||
General and administrative expenses | 75.7 | 70.9 | 72.4 | ||||||||
Restructuring and impairments | — | — | — | ||||||||
Total operating expenses | 3,621.8 | 3,439.3 | 3,647.7 | ||||||||
Operating income | $ | 990.7 | $ | 874.8 | $ | 1,033.4 | |||||
Operating margin | 21.5 | % | 20.3 | % | 22.1 | % |
Quarter Ended | |||||||||||
International (GAAP) | Dec 30, 2018 | Mar 31, 2019 | Jun 30, 2019 | ||||||||
Net revenues: | |||||||||||
Company-operated stores | $ | 1,278.1 | $ | 1,309.4 | $ | 1,352.8 | |||||
Licensed stores | 222.5 | 215.1 | 228.7 | ||||||||
Other | 3.4 | 4.9 | 3.8 | ||||||||
Total net revenues | 1,504.0 | 1,529.4 | 1,585.3 | ||||||||
Cost of sales | 462.7 | 470.2 | 476.1 | ||||||||
Store operating expenses | 603.7 | 618.4 | 609.2 | ||||||||
Other operating expenses | 31.3 | 26.3 | 26.7 | ||||||||
Depreciation and amortization expenses | 127.0 | 130.4 | 127.7 | ||||||||
General and administrative expenses | 69.3 | 80.2 | 86.0 | ||||||||
Restructuring and impairments | 6.4 | 24.2 | 16.6 | ||||||||
Total operating expenses | 1,300.4 | 1,349.7 | 1,342.3 | ||||||||
Income from equity investees | 26.4 | 22.1 | 27.2 | ||||||||
Operating income | $ | 230.0 | $ | 201.8 | $ | 270.2 | |||||
Operating margin | 15.3 | % | 13.2 | % | 17.0 | % |
Quarter Ended | |||||||||||
International (Non-GAAP) | Dec 30, 2018 | Mar 31, 2019 | Jun 30, 2019 | ||||||||
Net revenues: | |||||||||||
Company-operated stores | $ | 1,278.1 | $ | 1,309.4 | $ | 1,352.8 | |||||
Licensed stores | 222.5 | 215.1 | 228.7 | ||||||||
Other | 3.4 | 4.9 | 3.8 | ||||||||
Total net revenues | 1,504.0 | 1,529.4 | 1,585.3 | ||||||||
Cost of sales | 462.7 | 470.2 | 476.1 | ||||||||
Store operating expenses | 598.9 | 614.6 | 604.3 | ||||||||
Other operating expenses | 31.4 | 26.2 | 24.4 | ||||||||
Depreciation and amortization expenses | 74.6 | 76.4 | 74.1 | ||||||||
General and administrative expenses | 66.3 | 69.1 | 74.2 | ||||||||
Restructuring and impairments | — | — | — | ||||||||
Total operating expenses | 1,233.9 | 1,256.5 | 1,253.1 | ||||||||
Income from equity investees | 26.4 | 22.1 | 27.2 | ||||||||
Operating income | $ | 296.5 | $ | 295.0 | $ | 359.4 | |||||
Operating margin | 19.7 | % | 19.3 | % | 22.7 | % |
Quarter Ended | |||||||||||
Channel Development (GAAP) | Dec 30, 2018 | Mar 31, 2019 | Jun 30, 2019 | ||||||||
Total net revenues | $ | 504.6 | $ | 446.6 | $ | 533.3 | |||||
Cost of sales | 348.4 | 305.4 | 377.1 | ||||||||
Other operating expenses | 18.6 | 17.1 | 20.2 | ||||||||
Depreciation and amortization expenses | — | 12.3 | 0.2 | ||||||||
General and administrative expenses | 3.2 | 3.1 | 2.7 | ||||||||
Total operating expenses | 370.2 | 337.9 | 400.2 | ||||||||
Income from equity investees | 41.4 | 40.2 | 48.8 | ||||||||
Operating income | $ | 175.8 | $ | 148.9 | $ | 181.9 | |||||
Operating margin | 34.8 | % | 33.3 | % | 34.1 | % |
Quarter Ended | |||||||||||
Channel Development (Non-GAAP) | Dec 30, 2018 | Mar 31, 2019 | Jun 30, 2019 | ||||||||
Total net revenues | $ | 504.6 | $ | 446.6 | $ | 533.3 | |||||
Cost of sales | 348.4 | 305.4 | 377.1 | ||||||||
Other operating expenses | 13.3 | 13.1 | 18.7 | ||||||||
Depreciation and amortization expenses | — | 12.3 | 0.2 | ||||||||
General and administrative expenses | 3.2 | 3.1 | 2.7 | ||||||||
Total operating expenses | 364.9 | 333.9 | 398.7 | ||||||||
Income from equity investees | 41.4 | 40.2 | 48.8 | ||||||||
Operating income | $ | 181.1 | $ | 152.9 | $ | 183.4 | |||||
Operating margin | 35.9 | % | 34.2 | % | 34.4 | % |
Quarter Ended | |||||||||||
Corporate and Other (GAAP) | Dec 30, 2018 | Mar 31, 2019 | Jun 30, 2019 | ||||||||
Total net revenues | $ | 11.6 | $ | 15.8 | $ | 23.3 | |||||
Cost of sales | 13.4 | 15.9 | 22.4 | ||||||||
Store operating expenses | — | — | — | ||||||||
Other operating expenses | 3.2 | 4.3 | 5.8 | ||||||||
Depreciation and amortization expenses | 39.5 | 40.5 | 39.6 | ||||||||
General and administrative expenses | 300.4 | 303.9 | 299.0 | ||||||||
Restructuring and impairments | 13.9 | 0.6 | 6.0 | ||||||||
Total operating expenses | 370.4 | 365.2 | 372.8 | ||||||||
Operating loss | $ | (358.8 | ) | $ | (349.4 | ) | $ | (349.5 | ) |
Quarter Ended | |||||||||||
Corporate and Other (Non-GAAP) | Dec 30, 2018 | Mar 31, 2019 | Jun 30, 2019 | ||||||||
Total net revenues | $ | 11.6 | $ | 15.8 | $ | 23.3 | |||||
Cost of sales | 13.6 | 15.9 | 22.4 | ||||||||
Store operating expenses | — | — | — | ||||||||
Other operating expenses | 3.2 | 4.3 | 5.8 | ||||||||
Depreciation and amortization expenses | 39.5 | 40.5 | 39.6 | ||||||||
General and administrative expenses | 269.9 | 278.7 | 285.1 | ||||||||
Restructuring and impairments | — | — | — | ||||||||
Total operating expenses | 326.2 | 339.4 | 352.9 | ||||||||
Operating loss | $ | (314.6 | ) | $ | (323.6 | ) | $ | (329.6 | ) |
Quarter Ended | Fiscal Year Ended | |||||||||||||
International | Dec 31, 2017 | Apr 1, 2018 | Jul 1, 2018 | Sep 30, 2018 | Sep 30, 2018 | |||||||||
Comparable Store Sales Growth | — | % | 2 | % | (1 | )% | 1 | % | 1 | % | ||||
Change in Transactions | — | % | (1 | )% | (3 | )% | (1 | )% | (1 | )% | ||||
Change in Ticket | 1 | % | 3 | % | 2 | % | 2 | % | 2 | % |
Quarter Ended | ||||||||
International | Dec 30, 2018 | Mar 31, 2019 | Jun 30, 2019 | |||||
Comparable Store Sales Growth | 2 | % | 2 | % | 5 | % | ||
Change in Transactions | 1 | % | — | % | 1 | % | ||
Change in Ticket | 1 | % | 2 | % | 3 | % |
Quarter Ended | |||||||||||
U.S. Supplemental Data | Dec 30, 2018 | Mar 31, 2019 | Jun 30, 2019 | ||||||||
Revenue | $ | 4,216.0 | $ | 3,955.3 | $ | 4,288.1 | |||||
Comparable 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 |
Quarter Ended | |||||||||||
China Supplemental Data | Dec 30, 2018 | Mar 31, 2019 | Jun 30, 2019 | ||||||||
Revenue | $ | 657.7 | $ | 708.6 | $ | 735.2 | |||||
Comparable 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 |
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