Starbucks Corp SBUX
Q4 2012 Earnings Call Transcript

Transcript Call Date 11/01/2012

Operator: Good afternoon. My name is Rachel, and I will be your conference operator today. At this time, I would like to welcome everyone to the Starbucks Coffee Company's Fourth Quarter and Fiscal Year End 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, Rachel. This is JoAnn DeGrande, Director of Investor Relations for Starbucks Coffee Company. Thank you for joining us today for our fourth quarter and fiscal year end 2012 earnings call. Opening the call today will be Howard Schultz, Chairman, President and CEO, and he will be joined by Michelle Gass, President of our Europe, Middle East, and Africa business and Troy Alstead, Starbucks, Chief Financial Officer. The three Presidents of our other segments Cliff, John and Jeff are also on hand for Q&A.

This conference 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 and 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 earnings release can be found on our website at under Investor Relations. The first quarter is being webcast and archive of the webcast will also be available on our website.

Before I turn the call over to Howard, let me cover a couple of additional items. First, given that this is our year-end call we will extend it beyond 60 minutes as needed, and second I would like to remind you that our Biennial Investor Conference will be held on December 5, in New York. We hope you'll join us in person or participate via the webcast.

With that, let me turn the call over to you Howard.

Howard Schultz - Chairman, President and CEO: Thank you, JoAnn and good afternoon to everyone on today's call. Before we begin as a lifelong New Yorker, I would like to express my heartfelt concern for the many millions of people impacted by this week's devastating hurricane. The images we have seen and stories we have heard are beyond heartbreaking. All of us at Starbucks are grateful to the thousands of first responders who are courageously and selfishly responding to this disaster and our thoughts go out to those directly affected.

I'll now turn to the record fourth quarter and fiscal 2012 financial results Starbucks reported today. Q4 was an extraordinary quarter for Starbucks on almost every level. Record fourth quarter revenue of $3.4 billion, strong fourth quarter EPS of $0.46, which includes charges of $0.02 per share related to our store portfolio optimization initiatives in Europe, an increase in our total Company operating margin to 15.4%, and significant relevant innovation across our business segments in around the world.

Read our Earnings Call Transcript disclaimer.
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