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Starbucks Reports 23 Percent Revenue Growth in May; Comparable Store Sales Increase 7 Percent

Posted on: Thursday, 1 June 2006, 18:00 CDT

Starbucks Corporation (Nasdaq: SBUX) today reported consolidated net revenues of $613 million for the four-week period ended May 28, 2006, an increase of 23 percent from consolidated net revenues of $496 million for the same four-week period in fiscal 2005. On a comparable store sales basis (stores open for at least 13 months), sales at Company-operated stores increased seven percent for the four weeks ended May 28, 2006, as compared to the same four-week period in fiscal 2005.

"Starbucks handcrafted beverages, particularly our blended beverage offerings, along with strong food sales were key contributors to our May results," commented Jim Donald, president and ceo. "The strength of both new and returning blended beverage flavors, combined with our store partners' exemplary ability to consistently deliver the Starbucks Experience, allowed us to achieve the high end of our comparable store sales growth target range."

For the 34 weeks ended May 28, 2006, consolidated net revenues were $5.0 billion, an increase of 23 percent from consolidated net revenues of $4.1 billion for the same 34-week period in fiscal 2005. Comparable store sales increased eight percent for the 34 weeks ended May 28, 2006, as compared to the same 34-week period in fiscal 2005. Net stores opened during the 34 weeks ended Stores open as of May 28, 2006 May 28, 2006 ----------------------------------------- United States: Company-operated Stores 419 5,286 Licensed Stores 446 2,881 ----------------------------------------- 865 8,167 International: Company-operated Stores 144 1,339 Licensed Stores 288 2,032 ----------------------------------------- 432 3,371 Total 1,297 11,538 =========================================

Through the dedication of our passionate partners (employees), Starbucks Coffee Company has transformed the way people in 37 countries enjoy their coffee, one cup at a time. Starbucks is the premier purveyor of the finest coffee in the world, with more than 11,500 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. The Company is committed to offering its customers the highest quality coffee and human connection through the Starbucks Experience, while striving to improve the social, environmental and economic well being of its partners, coffee farmers, countries of coffee origin, and the communities which it serves. Through Ethos Water, Starbucks demonstrates its long history of integrating a social conscience into all aspects of its business. The Company surprises and delights its customers by producing and selling bottled Starbucks Frappuccino(R) coffee drinks, Starbucks DoubleShot(R) espresso drink and Starbucks(R) superpremium ice creams through its joint venture partnerships, and Starbucks(TM) Coffee and Cream Liqueurs through a marketing and distribution agreement, in other convenient locations outside its retail operations. The Company's brand portfolio includes superpremium Tazo(R) teas, Starbucks Hear Music(TM) compact discs, Seattle's Best Coffee and Torrefazione Italia. These brands' unique and innovative personalities allow Starbucks to appeal to a broad consumer base.

This release refers to a forward-looking statement regarding comparable store sales expectations. This forward-looking statement is based on currently available operating, financial and competitive information and is subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors including but not limited to, coffee, dairy and other raw material prices and availability, successful execution of internal performance and expansion plans, fluctuations in U.S. and international economies and currencies, the impact of initiatives by competitors, the effect of legal proceedings, and other risks detailed in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section of Starbucks Annual Report on Form 10-K for the fiscal year ended October 2, 2005. The Company assumes no obligation to update this forward-looking statement.

Source: Business Wire

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