Starbucks Corp SBUX
Q2 2013 Earnings Call Transcript

Transcript Call Date 04/25/2013

Operator: Good afternoon. My name is Mike and I will be your conference operator today. At this time, I would like to welcome everyone to the Starbucks Coffee Company's Second Quarter Fiscal Year 2013 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 call.

JoAnn DeGrande - IR: Thank you, Mike. Good afternoon. This is JoAnn DeGrande, Vice President of Investor Relations for Starbucks Coffee Company. Joining me on the call today is Howard Schultz, Chairman, President and CEO; Cliff Burrows, President of our U.S. and Americas business; and Troy Alstead, our Chief Financial Officer. Also joining us here today for Q&A are John, Michelle and Jeff, the Presidents of our other three business segments.

This conference call 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.

This conference call is being webcast and an archive of the webcast will also be available on our website.

This is the first quarter we're including results from the recently acquired Teavana business in our financial results, and you'll find them in the P&L for all other segments. We've also removed unallocated corporate expenses from Other. Full year results for typical 2010 through fiscal 2012 for all of the segments as well as our corporate unallocated expenses can be found on our website.

With that, I'd like to turn the call over to Howard Schultz. Howard?

Howard Schultz - Chairman, President and CEO: Thank you, JoAnn, and good afternoon to everyone on today's call. I am very pleased to report the record Q2 results that Starbucks announced today. Global comp store sales growth of 6%, marking the 13th consecutive quarter of comp growth greater than 5%, comp growth of 7% in the U.S. Total revenue growth of 11% to a 2Q record of $3.6 billion, 180 basis points increase in operating marign to a Q2 record of 15.3% and record Q2 EPS of $0.51 which after excluding a $0.03 gain on the sale of the company's minority equity stake in the JV that operates our stores in Mexico represents a 20% increase over last year's record Q2 results.

Starbucks is continuing to deliver strong consistent performance in the face of still challenged retail and consumer environments in many of the markets around the world in which we operate. While I'm very pleased with the record result we have been reporting and the value that we have been creating for our shareholders over the last several years, as I've mentioned at our Annual Meeting of Shareholders last month we remain laser-focused on our aspiration to become one of the world's most admired, respected and enduring brands.

Read our Earnings Call Transcript disclaimer.
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