Starbucks Corp SBUX
Q1 2012 Earnings Call Transcript

Transcript Call Date 01/26/2012

Operator: Good afternoon. My name is David, and I will be your conference operator today. At this time, I would like to welcome everyone to the Starbucks Coffee Company's First Quarter Fiscal Year 2012 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

Thank you. Ms. DeGrande, you may begin your conference.

JoAnn DeGrande - IR: Thank you. Good afternoon. This is JoAnn DeGrande, Director of Investor Relations for Starbucks Coffee Company. Thank you all for joining us today for a review of our first quarter fiscal 2012 financial results.

This is our first earnings report under our new reporting segment and we will take the opportunity today to let you hear directly from two of the segment presidents on results from their respective businesses. We will start our call with comments from Howard Schultz, Chairman, President and CEO. Troy Alstead, our CFO will then speak to consolidated results. Jeff Hansberry, President of CPG, Foodservice and Seattle's Best Coffee will discuss results for these businesses followed by Cliff Burrows, President of our Americas segment. Troy will then wrap things up with a look at Europe, Middle East, Africa and China/Asia Pacific results and a review of our targets before we move to Q&A.

Our discussion today will include forward-looking statements, which are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. Any such statements should be considered in conjunction with cautionary statements in our earnings release as well as risk factor discussions in our filings with the SEC, including our last Annual Report on Form 10-K. Starbucks assumes no obligation to update any of these forward-looking statements or information.

Please refer to the financial statements accompanying the earnings release to find disclosures and reconciliations of non-GAAP financial measures mentioned on today's call with their corresponding GAAP measures. This conference call is being webcast and an archive of the webcast will be available on our website at under Investor Relations.

Before I turn the call over to Howard, let me cover a few housekeeping matters. Historically results recast under the new reporting segment can be found under the Investor Relations segment of In addition to the P&L we initially filed and posted late last week, we added three-year historical same store sales data and store counts.

Also, please note that we filed the Company's 2012 proxy statement today, which can also be found on our website. Finally, Starbucks 2012 Annual Meeting of Shareholders will be held in Seattle at 10.00 am Pacific Time on Wednesday, March 21st. That meeting will also be available via webcast.

With that, please let me turn the call over to Howard Schultz. Howard?

Howard Schultz - Chairman, President and CEO: Thank you, JoAnn, and welcome to everyone on the call. We are delighted to report Starbucks' first quarter fiscal 2012 results we announced earlier today. Q1 was an outstanding quarter for Starbucks on many levels. We served more customers than our stores around the world in any other time in our history. Our financial performance indicate that we delivered on every key performance metric to drive our ninth consecutive quarter of positive comps, including 9% growth in U.S. comparable store sales and 9% increase in global comparable store sales, a 7% increase in customer traffic and the strongest holiday season in our 40-year history. Record quarterly revenues of $3.4 billion and record quarterly earnings of $0.50 per share.

Read our Earnings Call Transcript disclaimer.
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