Starbucks Coffee Company

Barclays Capital Retail and Restaurants Conference

April 28, 2010
Forward Looking Statements
This presentation contains forward-looking statements. Forward-
looking statements are subject to various risks and uncertainties
that could cause our actual results to differ materially from these
statements, and should be considered in conjunction with
cautionary statements and risk factor discussions in our filings
with the SEC, including our last annual report on Form 10K and
subsequent reports on Form 10Q. Starbucks assumes no
obligation to update any of these forward-looking statements or
information.

Please refer to the appendix to find reconciliations of non-GAAP

financial measures noted in this presentation with their
corresponding GAAP measures.
Starbucks Coffee Company
Building for the Future

ƒ Deliver enhanced customer experience

ƒ Drive operational leverage

ƒ Deliver relevant innovation and profitable

growth platforms through multiple channels
Q2 Fiscal 2010 Highlights
Strong momentum continues
ƒ Revenue of $2.5B; 9% growth
ƒ Comparable store sales growth of 7%
ƒ 5th sequential quarter of improvement
ƒ Highest comp since Q206
ƒ Operating margin:
ƒ GAAP = 13.4% compared to 1.8% prior year
ƒ Non-GAAP = 13.7% compared to 8.3% prior year
ƒ Earnings per share:
ƒ GAAP = $0.28 vs. $0.03 in prior year
ƒ Non-GAAP = $0.29 vs. $0.16 in prior year
ƒ Initiated first-ever cash dividend
Note: Non-GAAP reconciliations available in the appendix
Comparable Store Sales
Return to growth
U.S. Segment Ticket Transactions

10%
7%

4%
5%
(1%)
(4%)
(5%) (8%) (10%) (8%) (6%) (1%)
0%

-5%

-10%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

FY 2008 FY 2009 FY 2010

International Segment
10%
7%
5%
4%
5% 3%
2%
0% 0%
(3%) (3%) (2%)
0%

-5%

-10%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

FY 2008 FY 2009 FY 2010

Margin Improvement
Driven by cost discipline and powerful sales leverage
Consolidated Operating Margin

15.0% 13.7%
12% - 13%
12.3%
11.5%
11.2%
13.2%
10.0% 9.2%
8.1%
7.8%

5.0%
4.9% 5.7%

3.2%
0.0%
FY05 FY06 FY07 FY08 FY09 1H FY09 1H FY10 FY10
Outlook
GAAP Non-GAAP Outlook Range

Notes: 1) Line on FY05 bar indicates operating margin including FAS 123 expensing of stock option compensation, 2) Non-GAAP
reconciliations available in the appendix
Earnings per Share
Profitable growth in a challenging environment

$1.19-$1.22
49% - 53%
$1.25 growth

$1.00 $0.87
$0.80
$0.71
$0.71
$0.75 $0.61 $0.62

$0.50 $0.60
$0.52
$0.32
$0.43
$0.25

$0.12
$0.00
FY05 FY06 FY07 FY08 FY09 1H FY09 1H FY10 FY10
Outlook

GAAP EPS Non-GAAP EPS Outlook Range

Notes: 1) FY05 EPS was before the adoption of FAS 123R, 2) FY06 includes $0.02 expense related to the cumulative effect of an
accounting change, 3) Non-GAAP reconciliations available in the appendix, 4) FY10 outlook includes ~$0.04 due to a 53rd week and
excludes ~$0.03 for restructuring
Profitable Growth
Record second quarter earnings

$0.29
$0.30

$0.28
$0.20 $0.16

$0.10

$0.03
$0.00
Q2 FY09 Q2 FY10

GAAP EPS Non-GAAP EPS

Note: Non-GAAP reconciliation available in the appendix
Profitable Growth
Record second quarter earnings
Non-GAAP Net Earnings
$121.1 Million $223.1 Million
$0.29
$0.30

$0.28
$0.20 $0.16

$0.10

$0.03
$0.00
Q2 FY09 Q2 FY10

GAAP EPS Non-GAAP EPS

Note: Non-GAAP reconciliation available in the appendix
United States
Healthy business provides foundation for Starbucks growth
Revenue (in millions) Operating Margin

Fiscal Year Fiscal 1H

$9,000 Fiscal Year Fiscal 1H

$6,000 20.0%

17.7%*
$7,023 $7,532 $7,105
$3,000
15.0%
$3,641 $3,755

High teens
$0
2007 2008 2009 1H FY09 1H FY10 11.0%*
10.0%
9.7%* 9.5%*
17.5%
14.3%
Operating Income (in millions)
5.0%
7.5%
Fiscal Year Fiscal 1H 6.0% 5.0%
$1,250
0.0%
$1,000 2007 2008 2009 1H FY09 1H FY10 Long-term
$730* $778*
$750 $666* target
$500 $1,005 $345*
$250 $454 $532 $656 GAAP
$184
$0 Non-GAAP
2007 2008 2009 1H FY09 1H FY10
Note: Non-GAAP reconciliation available in the appendix
International
On the path to an enormous opportunity
Revenue (in millions) Operating Margin

Fiscal Year Fiscal 1Hr

$2,500
Fiscal Year Fiscal 1H

$2,000
20.0%
$1,500

$1,000 $2,103 $1,920

$1,696 15.0%

Mid to High teens

$500 $929 $1,125
$0
10.0%
2007 2008 2009 1H FY09 1H FY10 9.0%*
6.5%* 6.2%*
Operating Income (in millions) 5.0%
3.9%*
8.1% 7.5%
5.2% 4.8%
Fiscal Year Fiscal 1H
$150 $137* 2.0%
0.0%
$120* 2007 2008 2009 1H FY09 1H FY10 Long-term
$102* target
$100

$138
$50 $110
$93 $36* $84
GAAP
$19
$0 Non-GAAP
2007 2008 2009 1H FY09 1H FY10
Note: Non-GAAP reconciliation available in the appendix
Consumer Products Group
High margin, high return business with growth ahead
Revenue (in millions) Operating Margin

Fiscal Year Fiscal 1H

$800 Fiscal Year Fiscal 1H

$600

45.0%
$400 $748 $750
$692
$200 $379 $377
30.0%
$0
2007 2008 2009 1H09 1H10
35.9% 37.3% 39.6% 36.4% 35.8% 35%
15.0%
Operating Income (in millions)

Fiscal Year Fiscal 1H 0.0%

$350 2007 2008 2009 1H09 1H10 Long-term
$280 target
$210
$140
$249 $279 $296
$70 $138 $135
$0
2007 2008 2009 1H09 1H10
Diversifying Our Business
As we expand our reach
CHANNEL OWNERSHIP GEOGRAPHY

16%
59%
FY 2005 76%
8%
37 markets
41%

25%
53%
10%
FY 2009
65% 50 markets
47%

U.S. Op Income*
International Op Income* Company-operated Stores
CPG Op Income* Licensed Stores
*Non-GAAP
Building for the Future
Investing for disciplined and profitable growth

AND INNOVATE
BEYOND STARBUCKS U.S. AND INTERNATIONAL STARBUCKS VIA

STORES…

SEATTLE’S BEST COFFEE PACKAGED GOODS

Innovation: New Store Designs
Locally relevant, sustainable and fresh designs
Disney Village Paris University Village Seattle

1st & Pike Seattle

Innovation: VIA Ready Brew
TM

Single serve coffee on-the-go and at-home

 Innovation: VIA Ready Brew TM

Single serve coffee on-the-go and at-home

US: International:
ƒ Compete in single serve market ƒ Take share from the $23B global
instant and single serve category
ƒ Grow Starbucks 4% share in the
65B cup Brewed Coffee category ƒ Instant coffee represents a higher mix
of retail coffee sales Internationally:
ƒ Create new usage occasions
On the go
At home
ƒ U.K. = 80%
37 billion cups Away from home
25 billion cups
(e.g., office, travel) 3.7 billion cups
(restaurant, specialty
coffee houses)
ƒ Japan = 53%

ƒ Russia = 85%

3% 13% 4% Starbucks
Starbucks share Starbucks share share
Seattle’s Best Coffee
Creating a $1 Billion global business
Seattle’s Best Coffee
Meaningful multi-channel growth opportunity

RETAIL PACKAGED SERVING THROUGH

GOODS OTHERS

Today

Franchising Innovation Pipeline New Partnerships

Growth
Opportunity
Operating Cash Flow Remains Strong
FY10 Free Cash Flow expected to be at least $1B

millions

$1,500 $1,389

>$1.5 Billion
$1,331
$1,259
$1,132
$1,080
$985
$1,000 $923

$771

$643

$446 ~$500
$500

$0
FY05 FY06 FY07 FY08 FY09 FY10 Outlook

Cash from Operations Capital Expenditure

Capex % of
10% 10% 11% 9% 5%
net revenues
Improving Shareholder Return
Through the distribution of excess cash

DIVIDEND SHARE REPURCHASE

Initiated $0.10 per First
Q2 2010 share paid distribution
quarterly April 23, 2010
15 million shares 21 million shares
newly authorized available for
repurchase
Shareholders of record Targeted 35% - 40%
on April 7, 2010 payout ratio
 Investment Highlights

ABUNDANT
MULTI-CHANNEL
GLOBAL GROWTH
OPPORTUNITIES
GROWTH
OPPORTUNITIES
RELEVANT ESTABLISHED
PRODUCT BLUE-CHIP
INNOVATION PARTNERSHIPS

LEVERAGABLE UNPARALLELED CSR ROBUST

ATTRACTIVE & LOYAL LEADERSHIP FREE CASH FLOW
PLATFORM CUSTOMER
DEMOGRAPHIC
GENERATION

SOLID ICONIC UNDISPUTED GLOBALLY EXPERIENCED

FOUNDATION
BRAND WITH COFFEE AUTHORITY DIVERSIFIED MANAGEMENT
GLOBAL FOOTPRINT & MARKET LEADER EARNINGS
Starbucks Coffee Company
Appendix
Reconciliation of Selected GAAP Measures
to Non-GAAP Measures
13 w e e k s 13 W eeks 26 w eeks 2 6 w ee k s 5 2 w ee k s 5 2 w e ek s 53 w e ek s
Q 2 FY09 Q 2 FY10 Q 2 F Y09 Q 2 FY10 FY08 F Y09 FY1 0
C o n s o lid a te d
O p e r a t in g m a r g in a s r e p o r te d ( G A A P ) 1 .8 % 1 3 .4 % 3.2 % 1 3.2 % 4 .9% 5 .7 % 1 2 % -1 3 %
R e s t ru c t u r in g c h a rg e s 6 .5 % 0.3 % 4.6 % 0 .5 % 2 .6% 3 .4 % <1%
O t h e r t ra s n f o r m a t io n c h a r g e s - - - - 0 .6% -
N o n - G A A P o p e r a t in g m a r g in 8 .3 % 1 3 .7 % 7.8 % 1 3.7 % 8 .1% 9 .2 % 1 2 % -1 3 %

D ilu t e d E P S , a s r e p o r t e d (G A A P ) 0.0 3 0 .2 8 0 .12 0 .60 0 .4 3 0 .5 2 1 . 1 6 -1 . 1 9

R e s t ru c t u r in g c h a rg e s , n e t o f t a x 0.1 3 0 .0 1 0 .20 0 .02 0 .2 2 0 .2 8 0 .0 3
O t h e r t ra n s f o r m a t io n c h a r g e s , n e t o f ta x - - - - 0 .0 6 -
N o n- G A A P E P S 0.1 6 0 .2 9 0 .32 0 .62 0 .7 1 0 .8 0 1.1 9 - 1.2 2

N e t e a r n in g s a s re p o r te d ( G A A P ) 25 .0 2 1 7.3 8 9.3 4 5 8 .8
R e s t ru c t u r in g c h a rg e s , n e t o f t a x 96 .1 5.8 1 4 4.9 1 8 .6
O t h e r t ra n s f o r m a t io n c h a r g e s , n e t o f ta x - - - -
N o n - G A A P n e t e a rn in g s 1 21 .1 2 2 3.1 2 3 4.2 4 7 7 .4

N e t c a s h p r o v id e d b y o p e r a tin g a c t iv it ie s
N e t a d d it io n s t o p ro p e rty , p la n t a n d e q u ip m e n t
F r e e c a s h f lo w > $ 1B **

US
O p e r a t in g in c o m e a s r e p o r te d ( G A A P ) 1 84 6 56 454 532
R e s t ru c t u r in g c h a rg e s 1 61 9 211 246
O t h e r t ra n s f o r m a t io n c h a r g e s - - 65 -
N o n - G A A P o p e r a t in g in c o m e 345 66 6 7 30 7 78

O p e r a t in g m a r g in a s r e p o r te d ( G A A P ) 5 .0% 1 7 .5% 6 .0 % 7 .5 %
R e s t ru c t u r in g c h a rg e s 4 .4% 0 .2% 2 .8 % 3 .5 %
O t h e r t ra s n f o r m a t io n c h a r g e s - - 0 .9 % -
N o n - G A A P o p e r a t in g m a r g in 9 .5% 1 7 .7% 9 .7 % 1 1 . 0 % h ig h t e e n s **

I n t e rn a t io n a l
O p e r a t in g in c o m e a s r e p o r te d ( G A A P ) 19 84 110 93
R e s t ru c t u r in g c h a rg e s 17 17 19 27
O t h e r t ra n s f o r m a t io n c h a r g e s - - 8 -
N o n - G A A P o p e r a t in g in c o m e 36 1 02 137 120

O p e r a t in g m a r g in a s r e p o r te d ( G A A P ) 2 .0% 7 .5% 5 .2 % 4 .8 %
R e s t ru c t u r in g c h a rg e s 1 .8% 1 .5% 0 .9 % 1 .4 %
O t h e r t ra s n f o r m a t io n c h a r g e s - - 0 .4 % -
N o n - G A A P o p e r a t in g m a r g in 3 .9% 9 .0% 6 .5 % 6 . 2 % h ig h t e e n s **