Report Builder Results - Starbucks Corporation -...

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Hoover's Online Report BuilderStarbucks Corporation (NASDAQ: SBUX)

Copyright 2005, Hoover's, Inc., ALL RIGHTS RESERVED

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Table of ContentsThe Basics................................................................................................................................................................................1

Key Numbers..............................................................................................................................................................1Financial Overview.....................................................................................................................................................1Officers & Employees.................................................................................................................................................1Board Members...........................................................................................................................................................4Industry Information...................................................................................................................................................5SIC Codes....................................................................................................................................................................5NAICS Codes..............................................................................................................................................................5Top Competitors..........................................................................................................................................................5All Competitors...........................................................................................................................................................5Rankings......................................................................................................................................................................6

Biographies.............................................................................................................................................................................7Howard D. Schultz, Age 51........................................................................................................................................7James L. (Jim) Donald, Age 50...................................................................................................................................7Martin Coles, Age 51..................................................................................................................................................8James C. (Jim) Alling, Age 43....................................................................................................................................8Michael Casey, Age 59...............................................................................................................................................8Paula E. Boggs, Age 45...............................................................................................................................................9Deidra Wager, Age 49.................................................................................................................................................9David A. (Dave) Pace, Age 45....................................................................................................................................9Dorothy J. Kim, Age 42............................................................................................................................................10Brian Crynes..............................................................................................................................................................10Steven (Steve) Schickler, Age 49..............................................................................................................................11Kenneth T. Lombard.................................................................................................................................................11Gerardo I. (Gerry) Lopez, Age 44.............................................................................................................................11Sandra E. Taylor........................................................................................................................................................11Darren Huston...........................................................................................................................................................12Christine M. Day.......................................................................................................................................................12Tony George..............................................................................................................................................................12Wanda J. Herndon, Age 52.......................................................................................................................................13David N. Chichester, Age 59....................................................................................................................................13Barbara Bass, Age 53................................................................................................................................................13Howard P. Behar, Age 60.........................................................................................................................................14William W. (Bill) Bradley, Age 62...........................................................................................................................14Mellody L. Hobson, Age 35......................................................................................................................................14Olden Lee, Age 63....................................................................................................................................................15Gregory B. (Greg) Maffei, Age 44............................................................................................................................15James G. (Jamie) Shennan Jr., Age 63......................................................................................................................16Myron E. (Mike) Ullman III, Age 58........................................................................................................................16Craig E. Weatherup, Age 59.....................................................................................................................................17

Significant Developments....................................................................................................................................................18

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Table of ContentsOverview...............................................................................................................................................................................19

History...................................................................................................................................................................................20

Products/Operations............................................................................................................................................................22

Other Resources Available On Hoover's Online...............................................................................................................27Other Resources........................................................................................................................................................27Related Products From Our Trusted Partners...........................................................................................................27

Annual Financials.................................................................................................................................................................28Historical Auditors....................................................................................................................................................30

Quarterly Financials............................................................................................................................................................31

Historical Financials & Employees.....................................................................................................................................34Historical Auditors....................................................................................................................................................35

Market Data..........................................................................................................................................................................36

Comparison Data..................................................................................................................................................................37

Competitive Landscape........................................................................................................................................................39

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The Basics

2401 Utah Ave. SouthSeattle, WA 98134 (Map)http://www.starbucks.com

Phone: 206−447−1575Fax: 206−447−0828Toll Free: 800−782−7282

Wake up and smell the coffee −− Starbucks is everywhere. The world's #1 specialty coffee retailer, Starbucks operatesand licenses more than 8,500 coffee shops in more than 30 countries. The shops offer coffee drinks and food items, aswell as beans, coffee accessories, teas, and CDs. Starbucks operates more than 5,200 of its shops in five countries (mostlyin the US), while licensees operate more than 2,800 units (primarily in shopping centers and airports). The company alsoowns and franchises the Seattle's Best Coffee and Torrefazione Italia chains in the US (more than 100 shops). In addition,Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products.

Key Numbers

Company Type Public (NASDAQ: SBUX)

D&B D−U−N−S Number 155366107

Fiscal Year−End September

2004 Sales (mil.) $5,294.2

2004 Employees 96,700

Auditor Deloitte & Touche LLP

Financial Overview

Last Close 5−Apr−2005 $51.74

52−Week High $64.26

52−Week Low $36.74

Basic EPS $1.03

Price/Earnings Ratio 50.23

Current Ratio 1.95

R&D Expense (mil.) 6.50

Advertising Expense (mil.) 68.30

% Owned by Institutions 74.00%

Officers & Employees

Title Name Age Salary Bonus

Chairman and Chief GlobalStrategist

Howard D. Schultz 51 $1,179,154 $2,490,000

President, CEO, and Director James L. (Jim) Donald 50

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President, Starbucks CoffeeInternational

Martin Coles 51

President, Starbucks Coffee US James C. (Jim) Alling 43

EVP, CFO, and ChiefAdministrative Officer

Michael Casey 59 $555,192 $585,000

EVP, General Counsel, andSecretary

Paula E. Boggs 45

EVP Deidra Wager 49

EVP Partner Resources David A. (Dave) Pace 45 $424,231 $470,000

EVP Supply Chain and CoffeeOperations

Dorothy J. Kim 42

SVP and CIO Brian Crynes

SVP; President, Seattle CoffeeCompany

Steven (Steve) Schickler 49

SVP; President, Starbucks CoffeeAsia Pacific

Pedro Y. K. Man

SVP; President, Starbucks CoffeeCanada

Colin Moore

SVP; President, Starbucks CoffeeLatin America

Julio Gutiérrez

SVP; President, StarbucksEntertainment

Kenneth T. Lombard

SVP; President, StarbucksGlobal Consumer Products

Gerardo I. (Gerry) Lopez 44

SVP Business Alliances, NorthAmerica

Hank J. Suerth

SVP, Category Management Michelle Gass

SVP Coffee Willard (Dub) Hay

SVP Corporate SocialResponsibility

Sandra E. Taylor

SVP Culture and Immersion Dave Olsen

SVP Finance, Starbucks CoffeeInternational

Marc Stolzman

SVP Global Manufacturing,Supply Operations

Richard Soderberg

SVP Human Resources,Starbucks Coffee International

Kenneth F. Meyers

SVP International Supply ChainOperations

Buck Hendrix

David Landau

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SVP Law and Corporate Affairsand Deputy General Counsel

SVP Marketing, StarbucksCoffee International

Thomas Yang

SVP; Managing Director,Starbucks UK

Cliff Burrows

SVP New Ventures Darren Huston

SVP North AmericanAdministration

Christine M. Day

SVP Operations, StoreDevelopment, and GlobalBusiness Systems

Katharine (Kathie) Lindemann

SVP Partner Resources, NorthAmerica

Margie Giuntini

SVP Partner Resources,Starbucks Coffee International

Tony George

SVP Starbucks CoffeeInternational

Troy Alstead

SVP Store Concepts Howard Wollner

SVP Store Development andAsset Development

Mark Wesley

SVP Total Pay Chet Kuchinad

SVP US Retail Stores Gregg S. Johnson

SVP Worldwide Public Affairs Wanda J. Herndon 52

CFO, Starbucks Coffee Japan David N. Chichester 59

SVP Central, US Retail Michael Bessire

SVP Northeast, US Retail Martin Annese

SVP Northwest, US Retail Launi Skinner

SVP Southwest, US Retail Mark Lindstrom

VP Business Systems Elizabeth King

VP Business Systems, NorthAmerica

Karen Metro

VP Corporate Development andInvestor Relations

Mary Ekman

VP Diversity May E. Snowden

VP Music and Entertainment Don MacKinnon

President, Starbucks CoffeeJapan

Yuji Tsunoda

Mark McKeon

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President, Starbucks Europe,Middle East, and Africa

Managing Director, StarbucksCoffee Trading Company

Marc Schonland

Managing Director, StarbucksThailand

Andrew Nathan

Director of Green Coffee Quality,Starbucks Coffee TradingCompany

Scott McMartin

Director of Marketing, SeattleCoffee Company

Matt Ramerman

Director of Media Relations Audrey Lincoff

Director of New Concepts andCold Beverages

Murray Darling

Coffee Quality Manager,Switzerland

Chris Jordan

Division Manager, CorporatePlanning Division, StarbucksCoffee Japan

Ryota Tsunoda

Investor Relations Mary Ellen Fukuhara

Media Relations Megan Behrbaum

Media Relations Chris Gimbl

Board Members

Title Name Age

Chairman and Chief GlobalStrategist

Howard D. Schultz 51

President, CEO, and Director James L. (Jim) Donald 50

Director Barbara Bass 53

Director Howard P. Behar 60

Director William W. (Bill) Bradley 62

Director Mellody L. Hobson 35

Director Olden Lee 63

Director Gregory B. (Greg) Maffei 44

Director James G. (Jamie) Shennan Jr. 63

Director Myron E. (Mike) Ullman III 58

Director Craig E. Weatherup 59

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Industry Information

LeisureRestaurants &Cafes

Specialty Eateries (primary)◊ ♦

FoodDairy Products♦

MediaRadio Broadcasting & Programming♦

BeveragesNonalcoholic Beverages

Coffee & Tea◊ ♦

SIC Codes

2024 Ice cream and frozen desserts

2095 Roasted coffee

4832 Radio broadcasting stations

5149 Groceries and related products, nec

5812 Eating places

NAICS Codes

311520 Ice Cream and Frozen Dessert Manufacturing

311920 Coffee and Tea Manufacturing

515112 Radio Stations

722213 Snack and Nonalcoholic Beverage Bars

Top Competitors

Caribou Coffee• Diedrich Coffee• Dunkin Brands•

All Competitors

ABP• Caribou Coffee• Cheesecake Factory• Coffee Republic• Community Coffee• Cosi• Diedrich Coffee• Dunkin Brands• Farmer Bros.• Green Mountain Coffee• Krispy Kreme• Lavazza• Nestlé• New World Restaurants•

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Biographies

Howard D. Schultz, Age 51

Chairman and Chief Global Strategist, $1,179,154 salary, $2,490,000 bonus

Other Company Affiliations

Company Title Salary Bonus

The Basketball Club of Seattle, LLC Chairman

DreamWorks Animation SKG Inc. Director

Maveron LLC Co−FounderRecent Work Highlights

Starbucks Corporation2003: Chairman and Chief Global Strategist, $1,132,762 salary, $1,417,000 bonus♦ 2002: Chairman and Chief Global Strategist, $1,088,269 salary, $1,362,500 bonus♦ 2001: Chairman and Chief Global Strategist, $995,192 salary, $1,150,000 bonus♦

Biography

HOWARD SCHULTZ is the founder of the Company, the chairman of the Board and has served as chief global strategistsince June 2000. From the Company's inception, he served as chairman of the board and chief executive officer. From1985 to June 1994, Mr. Schultz was also the Company's president. From January 1986 to July 1987, Mr. Schultz was thechairman of the board, chief executive officer and president of Il Giornale Coffee Company, a predecessor to theCompany. From September 1982 to December 1985, Mr. Schultz was the director of retail operations and marketing forStarbucks Coffee Company, a predecessor to the Company. Mr. Schultz also serves on the board of directors ofDreamWorks Animation SKG, Inc.

Source: Proxy, December 10, 2004

James L. (Jim) Donald, Age 50

President, CEO, and Director

Recent Work Highlights

Starbucks Corporation2004: CEO Designate, $832,308 salary, $1,404,000 bonus♦ 2003: CEO Designate, $744,615 salary, $1,200,000 bonus♦

Biography

Donald joined Starbucks in 2002 as president, North America. In this position, Donald has been responsible for the overallmanagement, business development and operations of Starbucks in all North American markets. During this period, theCompany has experienced record financial performance, attributable largely to the success in North America. Prior toStarbucks, Donald served as chairman, president and ceo for Pathmark Stores, Inc. Donald was a key executive inWal−mart's development of the Wal−mart Super Center, supervising all merchandising, distribution, store design and real

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estate operations. Jim has more than 30 years of national retail and supermarket experience.

Source: Company Press Release, October 12, 2004

Martin Coles, Age 51

President, Starbucks Coffee International

Biography

Coles was president and CEO of the Reebok Brand, Reebok International, Ltd., from May 2002 to February 2004. Prior tothis position, he served as executive vice president of Global Operating Units for Reebok. During his eight−year tenure atNike, Inc., Martin held several executive level general management, sales and operations positions for Nike, Inc.'s Globaland European operations, achieving extraordinary results while building Nike's reputation as a preeminent brand leader inEurope. His broad experience also includes executive positions as senior vice president, International Operations forGateway, Inc.; president and chief executive officer for Letsbuyit.com (London, United Kingdom); and vice president,Operations for PepsiCo, Inc.'s U.S. Bottling operations. He spent the first ten years of his career in various managementroles at Procter & Gamble.

Source: Company Press Release, March 11, 2004

James C. (Jim) Alling, Age 43

President, Starbucks Coffee US

Biography

James C. Alling joined Starbucks in September 1997 as senior vice president, Grocery and was promoted to executivevice president, Business and Operations − United States in November 2003. Prior to joining Starbucks, Mr. Alling heldseveral senior positions at Nestlé from 1985 to 1997 and served as vice president and general manager of severaldivisions, including ground coffee.

Source: 10K, December 23, 2003

Michael Casey, Age 59

EVP, CFO, and Chief Administrative Officer, $555,192 salary, $585,000 bonus

Other Company Affiliations

Company Title Salary Bonus

The Nasdaq Stock Market, Inc. DirectorRecent Work Highlights

Starbucks Corporation2003: EVP, CFO, and Chief Administrative Officer, $534,584 salary, $334,375 bonus♦ 2002: EVP, CFO, and Chief Administrative Officer, $510,600 salary, $318,302 bonus♦ 2001: EVP, CFO, and Chief Administrative Officer, $470,250 salary, $270,825 bonus♦

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Biography

Michael Casey joined Starbucks in August 1995 as senior vice president and chief financial officer and was promoted toexecutive vice president, chief financial officer and chief administrative officer in September 1997. Prior to joiningStarbucks, Mr. Casey served as executive vice president and chief financial officer of Family Restaurants, Inc. from itsinception in 1986. During his tenure there, he also served as a director from 1986 to 1993, and as president and chiefexecutive officer of its El Torito Restaurants, Inc. subsidiary from 1988 to 1993.

Source: 10K, December 23, 2003

Paula E. Boggs, Age 45

EVP, General Counsel, and Secretary

Biography

Paula E. Boggs joined Starbucks in September 2002 as executive vice president, general counsel and secretary. Prior tojoining Starbucks, Ms. Boggs served as vice president, legal, for products, operations and information technology at DellComputer Corporation from 1997 to 2002. From 1995 to 1997, Ms. Boggs was a partner with Preston Gates & Ellis. Ms.Boggs served in several roles at the Pentagon, White House and U.S. Department of Justice between 1984 and 1995.

Source: 10K, December 23, 2003

Deidra Wager, Age 49

EVP

Biography

Deidra Wager joined Starbucks in 1992 and served as the Company's senior vice president, Retail Operations from August1993 to September 1997 when she was promoted to executive vice president, Retail. In March 1999, Ms. Wager moved toTokyo, Japan to serve as a consultant to Starbucks Coffee International, Inc. and work with Starbucks Coffee Japan, Ltd.for which she served as chief retail officer. Prior to joining Starbucks, Ms. Wager held several operations positions withTaco Bell®, Inc. from 1988 to 1992.

Source: 10K, December 31, 2002

David A. (Dave) Pace, Age 45

EVP Partner Resources, $424,231 salary, $470,000 bonus

Recent Work Highlights

HomeGrocer.com, Inc.Last position held, SVP of People Capability♦

Starbucks Corporation2003: EVP Partner Resources, $400,000 salary, $435,000 bonus♦

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Biography

Dave Pace joined Starbucks in July 2002 as executive vice president of Partner Resources. From 2000 to 2002, Mr. Pacewas the president of i2 Technologies. From 1999 to 2000 Mr. Pace served as the chief human resources officer forHomeGrocer.com. From 1995 to 1999, he served as senior vice president of human resources for Tricon RestaurantsInternational (now YUM! Brands, Inc.).

Source: 10K, December 23, 2003

Dorothy J. Kim, Age 42

EVP Supply Chain and Coffee Operations

Recent Work Highlights

Starbucks CorporationTitle held until 2004: SVP Global Logistics and Procurement, Supply Chain Operations♦

Biography

Kim will be responsible for the day−to−day activities of SCCO, which include the global strategic business managementof manufacturing, engineering, purchasing, distribution, planning and transportation; supply chain integrated systems;inventory management and worldwide sourcing of coffee. Kim joined Starbucks in 1995, where she gained four years ofretail planning and operations experience prior to transitioning to SCCO. She held the positions of vice president, SCCOLogistics, and vice president, SCCO Finance & Systems, before her promotion to senior vice president, Global Logistics& Procurement. Kim was instrumental in leading the development of Starbucks SCCO Systems Vision and Master ProjectPlan. Prior to joining Starbucks, Kim served as the general manager at Yun's Company, a Seattle−area general contractor,where she increased revenue by 100 percent and delivered healthy profits for all programs within a two−year period. Herbroad experience includes roles in several supply chain functions with large, brand name companies such as Boeing,Honeywell and Heath Tecna, with the major focus on reducing supply chain costs.

Source: Company Press Release, December 14, 2004

Brian Crynes

SVP and CIO

Biography

Before joining Starbucks, Brian Crynes served as chief information officer at Coca−Cola Amatil in Sydney, Australia. Inthis position, he helped align IT and business strategy and developed a business systems roadmap that included acustomer−centered e−business solution for various markets across Asia Pacific. He also established an overall businesssystem strategy that enabled business units to localize common business solutions for their markets. Crynes has also heldsenior management positions at world−class companies such as Bristol−Myers Squibb, Apple Computer, and the NewYork Daily News. He graduated from the University of Scranton with a bachelor of science, mathematics, in 1968 andreceived his master's degree in business administration, finance, in 1972.

Source: Company Press Release,

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Steven (Steve) Schickler, Age 49

SVP; President, Seattle Coffee Company

Recent Work Highlights

Seattle Coffee CompanyLast position held, President♦

Kenneth T. Lombard

SVP; President, Starbucks Entertainment

Biography

Starbucks Coffee Co. said Kenneth T. Lombard, president of Johnson Development Corp. and Magic Johnson Theatres,accepted a post of senior vice president and president of Starbucks Entertainment.Lombard is also co−managing partner ofthe Canyon Johnson Urban Fund.In this newly created role, Lombard will lead the vision and strategy for Starbucks' HearMusic division and wireless Internet, reporting to Jim Donald, president of Starbucks North America. Starbucks acquiredin 1999 Hear Music, a chain of music shops offering customers the ability to customize their CD's.

Source: National Restaurant News, May 17, 2004

Gerardo I. (Gerry) Lopez, Age 44

SVP; President, Starbucks Global Consumer Products

Biography

Gerry brings extensive global Consumer Products industry experience to Starbucks, along with his wealth of domestic andinternational experience. Previously, Gerry served as president, Handleman Entertainment Resources, which providescategory management and distribution services for pre−recorded music for Wal−Mart, Best Buy and other large retailers.His broad experience includes executive positions as president, International Division for International Home Foods;corporate vice president, sales and distribution, for Grupo Industrial Maseca (Mission Foods); area vice president, FritoLay; and senior level marketing positions at PepsiCo, Inc. and Procter and Gamble.

Source: Company Press Release, September 15, 2004

Sandra E. Taylor

SVP Corporate Social Responsibility

Biography

Taylor, who has served in her most recent position at Eastman Kodak Company since 1996, brings extensive internationaland domestic corporate social responsibility and government affairs experience to Starbucks. As a corporate officer,Taylor had overall responsibility for federal, state and international government relations. In addition, she managed thecompany's Washington, D.C. government affairs office.Additionally, she has held several senior leadership positions at

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top−tier organizations such as ICI Americas Inc., the American branch of Imperial Chemical Industries Plc., aBritish−owned chemical corporation. She also worked as a foreign service officer for the United States Department ofState and as an attorney for Colorado's third largest law firm, Gorsuch, Kirgis, Campbell, Walker and Grover. Taylorreceived her bachelor of arts degree in French from Colorado Women's College in 1972 and her Juris Doctor from BostonUniversity School of Law in 1975. Taylor sits on many boards and community relations committees, including co−chairand founder of American and African Businesswomen's Alliance and the Women's Leadership Board for the KennedySchool of Government at Harvard University.

Source: Company Press Release, June 16, 2003

Darren Huston

SVP New Ventures

Biography

Darren Huston joined Starbucks in June 1998 as vice president, Retail Strategy and New Business and was promoted tosenior vice president, New Ventures in March 2000. From 1994 to 1998, Mr. Huston worked at McKinsey & Companyand was a leader in McKinsey's strategy and marketing practices.

Source: 10K,

Christine M. Day

SVP North American Administration

Other Company Affiliations

Company Title Salary Bonus

Select Comfort Corporation Director

Tony George

SVP Partner Resources, Starbucks Coffee International

Biography

In his previous role, Tony served as the senior vice president and chief Human Resources officer at Burger KingInternational. He reported to the president of Burger King International and led Human Resources support for thecompany's growing international region which currently includes 59 countries, 3,200 restaurants and 12,000 employees.Prior to that time, Tony spent 10 years in various senior international Human Resources and management positions withDiageo plc (former owners of Burger King Company) and also served in various management roles at ICI India, aninternational multi−brand consumer products company.

Source: Company Press Release, June 1, 2004

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Wanda J. Herndon, Age 52

SVP Worldwide Public Affairs

Biography

Wanda Herndon joined Starbucks in July 1995 as vice president, Communications and Public Affairs and was promotedto senior vice president, Communications and Public Affairs (now known as Worldwide Public Affairs) in November1996. From February 1990 to June 1995, Ms. Herndon held several communications management positions at DuPontCompany. From November 1978 to February 1990, Ms. Herndon held several public affairs and marketingcommunications positions at the Dow Chemical Company.

Source: 10K, December 31, 2002

David N. Chichester, Age 59

CFO, Starbucks Coffee Japan

Other Company Affiliations

Company Title Salary Bonus

Central Garden & Pet Company DirectorBiography

Before joining Starbucks, Chichester served as Executive Vice President and Chief Financial Officer at Red Roof Inns,Inc. and Hecklers Online, Inc. Prior to these positions, he held senior management positions in finance at MarriottCorporation, Integrated Health Services and G. E. Credit Corporation, and served as a Vice President of Warburg ParibasBecker and the First National Bank of Chicago. Chichester also served as a Lieutenant in the U. S. Navy. He earned abachelor's degree from Brown University and a master's degree in business administration from Harvard University. Heserves on the Boards of Living Strategies, Inc. and the Brown University Sports Foundation.

Source: Company Press Release,

Barbara Bass, Age 53

Director

Other Company Affiliations

Company Title Salary Bonus

bebe stores, inc. DirectorBiography

BARBARA BASS has been a director of the Company since January 1996. Since 1993, Ms. Bass has been the presidentof Gerson Bakar Foundation. From 1989 to 1992, Ms. Bass was president and chief executive officer of the EmporiumWeinstock Division of Carter Hawley Hale Stores, Inc. Ms. Bass also serves on the board of directors of DFS GroupLimited, a retailer of luxury branded merchandise, and bebe stores, inc., a retailer of contemporary sportswear andaccessories.

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Source: Proxy, January 22, 2004

Howard P. Behar, Age 60

Director

Other Company Affiliations

Company Title Salary Bonus

Gap Inc. Director

Shurgard Storage Centers, Inc. DirectorBiography

HOWARD P. BEHAR has been a director of the Company since January 1996. Mr. Behar came out of retirement to serveas the Company's president, North America from September 2001 through December 2002. Prior to serving in thatcapacity, Mr. Behar served as president of Starbucks Coffee International, Inc. from June 1994 until his retirement in late1999. From February 1993 to June 1994, Mr. Behar served as the Company's executive vice president, Sales andOperations. From February 1991 to February 1993, Mr. Behar served as the Company's senior vice president, RetailOperaions and from August 1989 to January 1991, he served as the Company's vice president, Retail Stores. Mr. Beharalso serves on the board of directors of The Gap, Inc. and Shurgard Storage Centers, Inc.

Source: Proxy, January 22, 2004

William W. (Bill) Bradley, Age 62

Director

Other Company Affiliations

Company Title Salary Bonus

Seagate Technology DirectorBiography

WILLIAM W. (BILL) BRADLEY has been a director of the Company since June 2003. Mr. Bradley is a managingdirector of Allen & Company LLC and is chief outside advisor to McKinsey & Company's non−profit practice.Mr. Bradley also served as a senior advisor and vice chairman of the International Council of JP Morgan & Co., Inc. from1997 through 1999. From 1979 until 1997, Mr. Bradley represented the State of New Jersey serving in the U.S. Senate.From 1967 through 1977, he played professional basketball for the New York Knicks, during which time they won twoworld championships. Mr. Bradley also serves on the board of directors of Eastman Kodak Company, Willis GroupHoldings Limited and Seagate Technology.

Source: Proxy, January 22, 2004

Mellody L. Hobson, Age 35

Director

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Other Company Affiliations

Company Title Salary Bonus

DreamWorks Animation SKG Inc. Director

The Estée Lauder Companies Inc. Director

Tellabs, Inc. DirectorBiography

MELLODY HOBSON was nominated by the Board as a Class 3 Director in November 2004. Ms. Hobson has served asthe president and a director of Ariel Capital Management, LLC/Ariel Mutual Funds, a Chicago−based investmentmanagement firm, since 2000. She previously served as senior vice president and director of marketing at Ariel CapitalManagement, Inc. from 1994 to 2000, and as vice president of marketing at Ariel Capital Management, Inc. from 1991 to1994. Ms. Hobson works with a variety of civic and professional institutions, including serving as a director of theChicago Public Library as well as its foundation and as a board member of the Field Museum and the Chicago PublicEducation Fund. In 2004, the Wall Street Journal named her as one of its "50 Women to Watch". Ms. Hobson also serveson the board of directors of Tellabs, Inc., DreamWorks Animation SKG, Inc. and The Estee Lauder Companies Inc.

Source: Proxy, December 10, 2004

Olden Lee, Age 63

Director

Biography

Lee, a retired executive from PepsiCo, provided 28 years of service to the company in a number of positions of increasingresponsibility. Most recently, he served as senior vice president of human resources for Taco Bell, where hisaccountabilities included recruiting, compensation and benefits, management development and training, and publicaffairs. Prior to Taco Bell, Lee served as KFC's senior vice president managing similar accountabilities in the worldwideenterprise that encompassed 61 countries. Lee currently serves on the board of Scottsdale Healthcare Corporation, thePhoenix Art Museum, and the Business School advisory board of the University of Arizona. Lee also served as a memberof the Texas Christian University international board of advisors, and interim chief executive officer of the 100 BlackMen organization, where he is still a member.

Source: Company Press Release, June 17, 2003

Gregory B. (Greg) Maffei, Age 44

Director

Other Company Affiliations

Company Title Salary Bonus

360networks Corporation Chairman and CEO

Electronic Arts Inc. Director

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Recent Work Highlights

GT Group Telecom Inc.Last position held, Chairman and CEO♦

ONI Systems Corp.Last position held, Director♦

Biography

GREGORY B. MAFFEI has been a director of the Company since February 1999. Mr. Maffei is chairman and chiefexecutive officer of 360networks Corporation, a telecommunications service provider. Previously, Mr. Maffei served asthe chief financial officer of Microsoft Corporation from 1997 to 2000, and as its vice president, corporate developmentand treasurer from 1994 to 1997. Mr. Maffei also serves on the board of directors of aQuantive, Inc. (until May 2004) andElectronic Arts Inc.

Source: Proxy, January 22, 2004

James G. (Jamie) Shennan Jr., Age 63

Director

Other Company Affiliations

Company Title Salary Bonus

P.F. Chang's China Bistro, Inc. Director

Trinity Ventures General PartnerBiography

JAMES G. SHENNAN, JR., has been a director of the Company since March 1990. Mr. Shennan has served as a generalpartner of Trinity Ventures, a venture capital organization, since September 1989. Prior to that time, he served as the chiefexecutive of Addison Consultants, Inc., an international marketing services firm, and two of its predecessor companies.Mr. Shennan also serves on the board of directors of P.F. Chang's China Bistro, Inc.

Source: Proxy, January 22, 2004

Myron E. (Mike) Ullman III, Age 58

Director

Other Company Affiliations

Company Title Salary Bonus

J. C. Penney Company, Inc. Chairman and CEO

J. C. Penney Corporation, Inc. Chairman and CEO

Polo Ralph Lauren Corporation Director

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Biography

MYRON E. ULLMAN, III, has been a director since January 2003. Mr. Ullman served as co−chairman of GlobalCrossing Limited, a telecommunications service provider, from December 2002 to December 2003. From July 1999 toJanuary 2002, Mr. Ullman served as directeur general, group managing director of LVMH Möet Hennessy Louis Vuitton,a luxury goods manufacturer and retailer. From January 1995 to June 1999, Mr. Ullman served as chairman and chiefexecutive officer of DFS Group Limited, a retailer of luxury branded merchandise. From 1992 to 1995, Mr. Ullmanserved as chairman and chief executive officer of R.H. Macy & Co., Inc. Mr. Ullman also serves on the board of directorsof Taubman Centers, Inc. and Kendall−Jackson Wine Estates, Ltd.

Source: Proxy, January 22, 2004

Craig E. Weatherup, Age 59

Director

Biography

CRAIG E. WEATHERUP has been a director of the Company since February 1999. From March 1999 to January 2003,Mr. Weatherup served as the chairman and chief executive officer of The Pepsi Bottling Group, Inc. and currently is amember of its board of directors. Prior to the initial public offering of The Pepsi Bottling Group, Inc. in early 1999, Mr.Weatherup worked with PepsiCo, Inc. for 24 years and served as chief executive officer of its worldwidePepsi−Cola business. Mr. Weatherup also serves on the board of directors of Federated Department Stores, Inc.

Source: Proxy, January 22, 2004

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Significant Developments

Date Event Details

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Overview

Wake up and smell the coffee −− Starbucks is everywhere. The world's #1 specialty coffee retailer, Starbucks operatesand licenses more than 8,500 coffee shops in more than 30 countries. The shops offer coffee drinks and food items, aswell as beans, coffee accessories, teas, and CDs. Starbucks operates more than 5,200 of its shops in five countries (mostlyin the US), while licensees operate more than 2,800 units (primarily in shopping centers and airports). The company alsoowns and franchises the Seattle's Best Coffee and Torrefazione Italia chains in the US (more than 100 shops). In addition,Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products.

More than a leader in the retail coffee business, the company has been a force of nature −− its long term expansion plansare to grow to 15,000 US stores and 15,000 international stores. The company will continue to focus on drive−throughretail development throughout 2005.

Starbucks' grocery retail licensing relationship with Kraft continues to develop, allowing the coffee company to graduallyexpand its selection of coffee beans and teas in supermarkets. Also, the company's partnership with Jim Beam to producea Starbucks coffee liqueur will permit Starbucks to introduce its newest product to a national audience. But all was notrosy with the Jim Beam/Starbucks collaboration: In reaction to the partnership, Pax World Funds dropped Starbucks fromits investment portfolio, citing a policy of not investing in companies that make money from the manufacture of liquor.

The NBA Hall of Famer Magic Johnson is the only US Starbucks franchisee (through his Johnson Development company,which specializes on building projects in urban neighborhoods), with a 50% stake in about 75 locations.

Ensuring that air travel passengers can have their in−flight java fix, Starbucks extended its agreement with UAL Corp tobe its exclusive coffee served during all United and Ted flights worldwide. The coffee supply and mutual marketingagreement are slated to last until 2007.

Starbucks has been testing hot breakfast and lunch menus, such as egg and spinach muffins, in select stores on the WestCoast.

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History

Starbucks was founded in 1971 in Seattle by coffee aficionados Gordon Bowker, Jerry Baldwin, and Ziv Siegl, whonamed the company for the coffee−loving first mate in Moby Dick and created its famous two−tailed siren logo. Theyaimed to sell the finest−quality whole bean and ground coffees. By 1982 Starbucks had five retail stores and was sellingcoffee to restaurants and espresso stands in Seattle. That year Howard Schultz joined Starbucks to manage retail sales andmarketing. In 1983 Schultz traveled to Italy and was struck by the popularity of coffee bars. He convinced Starbucks'owners to open a downtown Seattle coffee bar in 1984. It was a success; Schultz left the company the following year toopen his own coffee bar, Il Giornale, which served Starbucks coffee.

Frustrated by its inability to control quality, Starbucks sold off its wholesale business in 1987. Later that year Il Giornaleacquired Starbucks' retail operations for $4 million. (Starbucks' founders held on to their other coffee business, Peet'sCoffee & Tea.) Il Giornale changed its name to Starbucks Corporation, prepared to expand nationally, and openedlocations in Chicago and Vancouver. In 1988 the company published its first mail−order catalog.

Starbucks lost money in the late 1980s as it focused on expansion (it tripled its number of stores to 55 between 1987 and1989). Schultz brought in experienced managers to run Starbucks' stores. In 1991 it became the nation's first privatelyowned company to offer stock options to all employees.

In 1992 the company went public and set up shops in Nordstrom's department stores. The following year Starbucks beganoperating cafes in Barnes & Noble bookstores. The company had nearly 275 locations by the end of 1993. Starbucksinked a deal in 1994 to provide coffee to ITT/Sheraton hotels (later acquired by Starwood Hotels & Resorts). The nextyear it capitalized on its popular in−house music selections by selling compact discs. Also in 1995 Starbucks joined withPepsiCo to develop a bottled coffee drink and agreed to produce a line of premium coffee ice cream with Dreyer's.

Starbucks expanded into Japan and Singapore in 1996. Also that year the company created Caffe Starbucks, an onlinestore located on AOL's marketplace. In 1997 Starbucks began testing sales of whole−bean and ground coffees in Chicagosupermarkets.

In 1998 Starbucks expanded into the UK when it acquired that country's Seattle Coffee Company chain (founded in 1995)for about $86 million and converted its stores into Starbucks locations. It also announced plans to sell coffee insupermarkets nationwide through an agreement with Kraft Foods. In 1999 Starbucks bought Tazo, an Oregon−based teacompany, as well as music retailer Hear Music, and opened its first store in China. Schultz toned down his Internet plansin late 1999 after investors and analysts voiced skepticism. (Starbucks has since scaled back its Internet retail activities,partnering instead with Amazon.com to sell branded kitchen wares and coffee supplies.)

In 2000 Schultz ceded the CEO post to president Orin Smith, remaining chairman but focusing primarily on thecompany's global strategy. Also that year the company struck an agreement with Kozmo.com, an Internet home−deliverycompany, which allows Kozmo.com customers to return rented videos to drop−boxes located at Starbucks. (Starbuckscancelled its deal with Kozmo.com the following year.)

Starbucks jumpstarted its worldwide expansion In 2001. It opened some 1,100 stores worldwide, including locations in ahandful of new European countries such as Austria and Switzerland. It also took its Japanese unit public. The followingyear the company opened its first shop in Spain and planned to open Starbucks locations in Greece and Germany. Later in2002 it announced large−scale expansion plans in Mexico and Latin America, and opened its first stores in Germany.

The next year Starbucks acquired Seattle Coffee Company (and its Seattle's Best Coffee brand) from AFC Enterprises for$72 million. The deal gave Starbucks an additional 150 coffee shops (as if it needed them) but more importantly it gavethe coffee giant the Seattle's Best Coffee brand and wholesale coffee business. It also got something new out of the deal:franchised locations. Having never franchised any of its Starbucks shops, the company has learned how to work with

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about two dozen Seattle's Best franchisees.

Starbucks was one of the first national retailers to jump on the Wi−Fi bandwagon, teaming with Hewlett−Packard andDeutsche Telekom's T−Mobile unit to offer high−speed wireless Internet access at 1,200 of its locations in the US,London, and Berlin. In March 2004 Starbucks and Hewlett−Packard unveiled their Hear Music service, which allowsStarbucks customers to create custom music CDs in some locations. In October 2004 the company premiered its HearMusic channel on XM Satellite Radio. Also, October saw the company premiere its new Hear Music CD−burning mediabar (co−developed with HP) in selected stores.

In June 2004 Starbucks inked a deal to buy 35 stores from its Singapore licensing partner, Bonvests Holdings Limited,and in July 2004 the company agreed to acquire a 49.9% equity stake in its Malaysian licensee. In August 2004 itannounced an agreement to convert more than 400 cafes in US Borders Books & Music stores into Seattle's Best Coffeecafes.

The company purchased its Germany licensing operations back from its partner, the department store and mail ordergroup KarstadtQuelle AG. The terms of the November 2004 deal were not disclosed. At the time of the deal, there wereabout 40 Starbucks coffee shops in Germany.

In 2005 the company began offering a hot chocolate in its US and Canada markets. The company likens the product,Chantico, to a melted truffle. That year in conjunction with Jim Beam Brands, it also introduced Starbucks CoffeeLiqueur. Smith retired as president and CEO in 2005; he was replaced by Starbucks' North American president JimDonald.

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Products/Operations

2004 Sales

$ mil. % of total

Domestic 4,447 84

International 847 16

Total 5,294 100

2004 LocationsCompany−owned

No.

US 4,293

UK 422

Canada 372

Thailand 49

Australia 44

Singapore 35

Total 5,215

2004 LocationsLicensed & Franchised

No.

US 1,839

Japan 534

China 152

Taiwan 136

South Korea 102

Philippines 70

Canada 66

Malaysia 52

Hawaii 45

New Zealand 36

Germany 35

Mexico 32

Saudi Arabia 32

United Arab Emirates 31

Kuwait 27

Spain 27

Greece 25

Indonesia 24

Switzerland 18

Turkey 15

Lebanon 10

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Chile 9

Austria 8

Puerto Rico 6

Qatar 6

Bahrain 5

Oman 3

Peru 3

Total 3,348

2004 Sales

$ mil. % of total

Retail stores 4,457 84

Specialty operations837 16

Total 5,294 100Archived Charts

2002 Locations

No.

North America

Company−owned 3,496

Licensed 1,078

International

Licensed

Asia/Pacific 783

Europe, the Middle East, and Africa 113

Latin America 32

Company−owned

UK 322

Australia 33

Thailand 29

Total 5,886

2003 LocationsCompany−owned

No.

US 3,779

UK 373

Canada 316

Australia 40

Thailand 38

Total 4,546

2003 LocationsLicensed & Franchised

No.

US 1,422

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Japan 486

China 116

Taiwan 113

South Korea 75

Philippines 54

Canada 53

Hawaii 38

Malaysia 37

New Zealand 35

Singapore 35

Saudi Arabia 29

United Arab Emirates 27

Germany 25

Kuwait 20

Indonesia 17

Mexico 17

Spain 15

Switzerland 15

Greece 12

Lebanon 9

Austria 8

Qatar 5

Bahrain 4

Turkey 4

Oman 3

Puerto Rico 3

Chile 1

Peru 1

Total 2,679 2001 Sales $ mil. % of totalRetail 2,230 84Specialty 419 16

Total 2,649 100

2002 Sales

% of total

Retail sales85

Licensing 15

Total 100

2002 Sales

% of total

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Beverages 77

Food 13

Coffee beans 6

Coffee equipment & accessories4

Total 100

2003 Sales

$ mil. % of total

Retail stores 3,450 85

Specialty operations626 15

Total 4,076 100

2003 Sales

$ mil. % of total

Retail stores 3,450 85

Specialty operations626 15

Total 4,076 100

2003 SalesRetail Stores

% of total

Beverages 78

Food 12

Coffee equipment & accessories5

Whole bean coffee 5

Total 100

2003 SalesSpecialty Operations

% of total

Royalties & licensing

Retail outlets

US 22

International 17

Food products

Whole bean coffee 25

Beverages & ice cream1

Foodservice 27

Other 8

Total 100

2003 SalesSpecialty Operations

% of total

Royalties & licensing

Retail outlets

US 22

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International 17

Food products

Whole bean coffee 25

Beverages & ice cream1

Foodservice 27

Other 8

Total 100

2003 SalesRetail Stores

% of total

Beverages 78

Food 12

Coffee equipment & accessories5

Whole bean coffee 5

Total 100

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Other Resources Available On Hoover's Online

News for Starbucks (last 90 days)

Company Press Release Archive

Other Resources

Headquarters Map• SEC Filings

10−K Filings♦ •

Stock Quote• Stock Chart• Earnings Estimates• ValuEngine Analysis• Annual Report • Investor Relations • Financial Data Definitions• Market Data Definitions• Comparison Data Definitions• Historical Financials & Employees Definitions•

Related Products From Our Trusted Partners

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Dairy Production Deluxe Set(Harris Industry Reports, Aug 12, 2003, Business Reports)

Coffee &Tea: Financial Analysis Profiles(BizMiner, Dec 26, 2004, Business Reports)

Amusement and Theme Parks in the US(IBISWorld, Oct 18, 2004, Business Reports)

Special Package: Online Retail Strategies and Projections(Forrester Research Inc, Jan 1, 2001, Business Reports)

CPG Sites: Strategies Must Integrate Attraction, Involvement, andRetention to Capture Value(Jupitermedia Corporation, Jan 16, 2003, Business Reports)

CANADA YOGHURT REPORT 2002(Snapshots International Ltd, Aug 31, 2002, Business Reports)

Additional 3rd Party Libraries

Additional Research On Starbucks

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Annual Financials

All amounts in millions of US Dollars

Income Statement Sep 04 Sep 03 Sep 02

Revenue 5,294.2 4,075.5 3,288.9

Cost of Goods Sold 4,135.7 1,664.5 2,582.7

Gross Profit 1,158.5 2,411.0 706.2

Gross Profit Margin 21.9% 59.2% 21.5%

SG&A Expense 304.3 1,765.5 202.2

Depreciation & Amortization 304.8 259.3 221.1

Operating Income 549.4 386.2 282.9

Operating Margin 10.4% 9.5% 8.6%

Nonoperating Income 74.8 50.0 45.1

Nonoperating Expenses 0.0 0.0 0.0

Income Before Taxes 624.2 436.2 341.4

Income Taxes 232.5 168.0 126.3

Net Income After Taxes 391.7 268.2 215.1

Continuing Operations 391.8 268.3 215.1

Discontinued Operations 0.0 0.0 0.0

Total Operations 391.8 268.3 215.1

Total Net Income 391.8 268.3 215.1

Net Profit Margin 7.4% 6.6% 6.5%

Diluted EPS from Continuing Operations ($) 0.95 0.67 0.54

Diluted EPS from Discontinued Operations ($) 0.00 0.00 0.00

Diluted EPS from Total Operations ($) 0.95 0.67 0.54

Diluted EPS from Total Net Income ($)

Dividends per Share 0.00 0.00 0.00

Balance Sheet Sep 04 Sep 03 Sep 02

Assets

Current Assets

Cash 299.1 200.9 174.6

Net Receivables 140.2 114.4 97.6

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Inventories 422.7 342.9 263.2

Other Current Assets 506.4 265.8 312.3

Total Current Assets 1,368.5 924.0 847.5

Net Fixed Assets 1,471.4 1,384.9 1,265.8

Other Noncurrent Assets 488.3 420.8 179.4

Total Assets 3,328.2 2,729.7 2,292.7

Liabilities and Shareholders' Equity Sep 04 Sep 03 Sep 02

Current Liabilities

Accounts Payable 199.3 169.0 136.0

Short−Term Debt 0.7 0.7 75.6

Other Current Liabilities 582.9 439.0 325.9

Total Current Liabilities 783.0 608.7 537.5

Long−Term Debt 3.6 4.4 5.1

Other Noncurrent Liabilities 8.1 1.0 1.0

Total Liabilities 841.3 647.3 566.1

Shareholders' Equity

Preferred Stock Equity 0.0 0.0 0.0

Common Stock Equity 2,486.8 2,082.4 1,726.6

Total Equity 2,486.8 2,082.4 1,726.6

Shares Outstanding (mil.) 397.4 393.7 388.2

Cash Flow Statement Sep 04 Sep 03 Sep 02

Net Operating Cash Flow 793.8 566.4 477.7

Net Investing Cash Flow (632.2) (499.3) (485.3)

Net Financing Cash Flow (66.5) 30.8 67.4

Net Change in Cash 98.2 101.2 61.3

Depreciation & Amortization 304.8 259.3 221.1

Capital Expenditures (393.7) (427.2) (375.5)

Cash Dividends Paid 0.0 0.0 0.0

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Historical Auditors

Auditor Name Year

Deloitte & Touche LLP 2003

Data Definitions

Some financial information provided byCoreData LLC , Richmond, Virginia

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Quarterly Financials

All amounts in millions of US Dollars

Income StatementQuarter

Ending Dec 04Quarter

Ending Sep 04Quarter

Ending Jun 04Quarter Ending

Mar 04Quarter

Ending Dec 03

Revenue 1,589.5 1,453.3 1,318.7 1,241.1 1,281.2

Cost of Goods Sold 1,162.0 1,171.2 1,024.7 927.2 928.5

Gross Profit 427.5 282.1 294.0 313.9 352.7

Gross Profit Margin 26.9% 19.4% 22.3% 25.3% 27.5%

SG&A Expense 127.9 80.5 73.4 120.8 113.7

Depreciation & Amortization 85.3 69.8 80.3 80.8 73.9

Operating Income 214.3 131.8 140.3 112.3 165.1

Operating Margin 13.5% 9.1% 10.6% 9.0% 12.9%

Nonoperating Income 18.0 27.3 17.9 16.0 13.6

Nonoperating Expenses 0.0 0.0 0.0 0.0 0.0

Income Before Taxes 232.3 159.1 158.2 128.3 178.7

Income Taxes 87.6 55.7 60.1 48.7 67.9

Net Income After Taxes 144.7 103.4 98.1 79.6 110.8

Continuing Operations 144.8 103.4 98.1 79.5 110.8

Discontinued Operations 0.0 0.0 0.0 0.0 0.0

Total Operations 144.8 103.4 98.1 79.5 110.8

Total Net Income 144.8 103.4 98.1 79.5 110.8

Net Profit Margin 9.1% 7.1% 7.4% 6.4% 8.6%

Diluted EPS from ContinuingOperations ($)

0.35 0.25 0.24 0.19 0.27

Diluted EPS fromDiscontinued Operations ($)

0.00 0.00 0.00 0.00 0.00

Diluted EPS from TotalOperations ($)

0.35 0.25 0.24 0.19 0.27

Diluted EPS from Total NetIncome ($)

Dividends per Share 0.00 0.00 0.00 0.00 0.00

Balance SheetQuarter

Ending Dec 04Quarter

Ending Sep 04Quarter

Ending Jun 04Quarter Ending

Mar 04Quarter

Ending Dec 03

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Assets

Current Assets

Cash 643.5 299.1 383.4 370.1 448.3

Net Receivables 149.4 140.2 122.8 118.6 122.8

Inventories 379.5 422.7 385.3 307.2 305.5

Other Current Assets 480.3 506.4 480.3 425.5 348.0

Total Current Assets 1,652.7 1,368.5 1,371.7 1,221.3 1,224.7

Net Fixed Assets 1,655.1 1,471.4 1,383.1 1,372.0 1,381.3

Other Noncurrent Assets 512.0 488.3 469.6 502.4 471.0

Total Assets 3,819.8 3,328.2 3,224.3 3,095.7 3,077.1

Liabilities andShareholders' Equity

QuarterEnding Dec 04

QuarterEnding Sep 04

QuarterEnding Jun 04

Quarter EndingMar 04

QuarterEnding Dec 03

Current Liabilities

Accounts Payable 161.2 199.3 142.1 157.9 144.7

Short−Term Debt 0.7 0.7 0.7 0.7 0.7

Other Current Liabilities 684.3 582.9 576.2 535.7 644.7

Total Current Liabilities 846.4 783.0 719.0 694.3 790.0

Long−Term Debt 3.4 3.6 3.8 4.0 4.2

Other Noncurrent Liabilities 154.5 8.1 7.0 6.4 2.5

Total Liabilities 1,018.5 841.3 774.8 742.3 830.7

Shareholders' Equity

Preferred Stock Equity 0.0 0.0 0.0 0.0 0.0

Common Stock Equity 2,801.1 2,486.8 2,449.5 2,353.4 2,246.4

Total Equity 2,801.1 2,486.8 2,449.5 2,353.4 2,246.4

Shares Outstanding (mil.) 402.8 397.4 398.3 397.6 395.7

Cumulative Cash FlowStatement

QuarterEnding Dec 04

QuarterEnding Sep 04

QuarterEnding Jun 04

Quarter EndingMar 04

QuarterEnding Dec 03

Net Operating Cash Flow 407.9 793.8 600.7 464.3 378.7

Net Investing Cash Flow (159.3) (632.2) (441.3) (329.9) (164.8)

Net Financing Cash Flow 91.2 (66.5) 20.6 32.0 30.5

Net Change in Cash 344.4 98.2 182.5 169.2 247.4

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Depreciation & Amortization 85.3 69.8 80.3 80.8 73.9

Capital Expenditures (173.4) (393.7) (221.1) (128.7) (59.1)

Cash Dividends Paid 0.0 0.0 0.0 0.0 0.0

Data Definitions

Some financial information provided byCoreData LLC , Richmond, Virginia

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Historical Financials & Employees

Income Statement

YearRevenue

($ mil.)Net Income

($ mil.)Net Profit

MarginEmployees

Sep 04 5,294.2 391.8 7.4% 96,700

Sep 03 4,075.5 268.3 6.6% 74,000

Sep 02 3,288.9 215.1 6.5% 62,000

Sep 01 2,649.0 181.2 6.8% 54,000

Sep 00 2,169.2 94.6 4.4% 47,000

Sep 99 1,680.1 101.7 6.1% 37,000

Sep 98 1,308.7 68.4 5.2% 26,000

Sep 97 966.9 57.4 5.9% 25,000

Sep 96 696.5 42.1 6.0% 16,600

Sep 95 465.2 26.1 5.6% 11,500

Stock History

YearStock Price ($) P/E Per Share ($)

FYHigh

FYLow

FYClose

High Low Earns. Div.BookValue

Sep 04 48.4 28.8 45.5 50.9 30.3 0.9 0.0 6.3

Sep 03 31.0 19.6 28.8 46.2 29.3 0.7 0.0 5.3

Sep 02 25.7 14.2 20.7 47.6 26.2 0.5 0.0 4.4

Sep 01 25.7 13.5 14.8 55.8 29.3 0.5 0.0 3.6

Sep 00 22.6 10.7 20.0 90.5 42.8 0.3 0.0 3.1

Sep 99 20.5 7.9 12.4 75.9 29.2 0.3 0.0 2.6

Sep 98 15.0 7.2 9.1 78.8 37.8 0.2 0.0 2.2

Sep 97 11.2 6.5 10.4 65.8 38.4 0.2 0.0 1.7

Sep 96 9.0 3.6 8.3 64.1 25.9 0.1 0.0 1.5

Sep 95 5.5 2.7 4.7 61.4 29.9 0.1 0.0 1.1

2004 Year−End Financials

Debt ratio 0.1%

Return on equity 15.8%

Cash ($ mil.) 299.1

Current ratio 1.75

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Long−term debt ($ mil.) 3.6

Shares Outstanding (mil.) 397.4

Dividend yield 0.0%

Dividend payout 0.0%

Market Cap ($ mil.) 18,066.1

Historical Auditors

Auditor Name Year

Deloitte & Touche LLP 2003

Data Definitions

Some financial information provided byCoreData LLC , Richmond, Virginia

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Market Data

Current Information

Last Close 5−Apr−2005 $51.74 Price/Sales Ratio 3.69

52−Week High $64.26 Price/Book Ratio 7.38

52−Week Low $36.74 Price/Earnings Ratio 50.23

60−Month Beta 0.7 Price/Cash Flow Ratio 27.82

Market Cap (mil.) $20,677.1Return on Assets 11.1%

Shares Outstanding (mil.) 399.6 Return on Equity 15.2%

Dividend Rate 0.00 Current Ratio 1.95

Dividend Yield 0.0% Long−Term Debt/Equity 0.00

# of Institutional Holders 668 % Owned by Institutions 74.0%

Latest Short Interest Ratio 3.30 Latest Net Insider Transactions (400.00)

Growth Rates 12 Month 36 Month 60 Month

Revenue Growth 28.7% 22.5% 23.3%

EPS Growth 39.2% 23.2% 29.0%

Dividend Growth −− −− −−

Data Definitions

Some financial information provided byCoreData LLC , Richmond, Virginia

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Comparison Data

Profitability Company Industry 1 Market 2

Gross Profit Margin 23.52% 24.85% 48.35%

Pre−Tax Profit Margin 12.10% 11.69% 9.68%

Net Profit Margin 7.60% 7.34% 6.29%

Return on Equity 15.2% 15.6% 11.9%

Return on Assets 11.1% 11.7% 2.0%

Return on Invested Capital 15.2% 15.6% 5.7%

Valuation Company Industry 1 Market 2

Price/Sales Ratio 3.69 3.81 1.35

Price/Earnings Ratio 50.23 53.55 21.62

Price/Book Ratio 7.38 8.12 2.55

Price/Cash Flow Ratio 27.82 29.21 11.69

Operations Company Industry 1 Market 2

Days of Sales Outstanding 9.60 9.82 50.28

Inventory Turnover 12.5 11.2 7.9

Days Cost of Goods Sold in Inventory 29 32 45

Asset Turnover 1.6 1.7 0.3

Net Receivables Turnover Flow 41.2 40.5 7.5

Effective Tax Rate 37.2% 37.1% 32.5%

Financial Company Industry 1 Market 2

Current Ratio 1.95 1.70 1.41

Quick Ratio 1.3 1.0 1.0

Leverage Ratio 1.36 1.34 5.96

Total Debt/Equity 0.00 0.00 1.40

Interest Coverage −− −− 2.90

Per Share Data ($) Company Industry 1 Market 2

Revenue Per Share 14.02 13.50 21.26

Fully Diluted Earnings Per Sharefrom Total Operations

1.03 0.96 1.33

Dividends Per Share 0.00 0.00 0.48

Cash Flow Per Share 1.86 1.76 2.46

Working Capital Per Share 2.02 1.36 2.27

Long−Term Debt Per Share 0.01 0.01 12.02

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Book Value Per Share 7.01 6.33 11.27

Total Assets Per Share 9.56 8.50 67.15

Growth Company Industry 1 Market 2

12−Month Revenue Growth 28.7% 29.8% 11.1%

12−Month Net Income Growth 41.5% 44.4% 28.1%

12−Month EPS Growth 39.2% 41.2% 20.9%

12−Month Dividend Growth −− −− 9.1%

36−Month Revenue Growth 22.5% 25.6% 7.3%

36−Month Net Income Growth 24.9% 30.3% 69.0%

36−Month EPS Growth 23.2% 29.1% 70.0%

36−Month Dividend Growth −− −− 4.9%1Industry: Specialty EateriesIndustry classifications are from CoreData LLC .

2 Public companies trading on the New York Stock Exchange, the American Stock Exchange, and the NASDAQ National Market.

Data Definitions

Some financial information provided byCoreData LLC , Richmond, Virginia

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Competitive Landscape

KEY: Best of Group. Companies listed are Top Competitors.

Key Numbers StarbucksCaribouCoffee1

DiedrichCoffee

DunkinBrands1

Annual Sales ($ mil.) 5,294.2 150.0 54.6 405.9

Employees 96,700 4,000 807 1,200

Market Cap ($ mil.) 20,677.1 0.0 26.9 0.0

Profitability StarbucksCaribouCoffee1

DiedrichCoffee

DunkinBrands1 Industry 2 Market 3

Gross Profit Margin 23.52% −− 10.39% −− 24.85% 48.35%

Pre−Tax Profit Margin 12.10% −− 0.18% −− 11.69% 9.68%

Net Profit Margin 7.60% −− 0.18% −− 7.34% 6.29%

Return on Equity 15.2% −− 0.6% −− 15.6% 11.9%

Return on Assets 11.1% −− 0.4% −− 11.7% 2.0%

Return on Invested Capital 15.2% −− 0.5% −− 15.6% 5.7%

Valuation StarbucksCaribouCoffee1

DiedrichCoffee

DunkinBrands1 Industry 2 Market 3

Price/Sales Ratio 3.69 −− 0.48 −− 3.81 1.35

Price/Earnings Ratio 50.23 −− 255.50 −− 53.55 21.62

Price/Book Ratio 7.38 −− 1.58 −− 8.12 2.55

Price/Cash Flow Ratio 27.82 −− 10.43 −− 29.21 11.69

Operations StarbucksCaribouCoffee1

DiedrichCoffee

DunkinBrands1 Industry 2 Market 3

Days of Sales Outstanding 9.60 −− 27.10 −− 9.82 50.28

Inventory Turnover 12.5 −− 17.3 −− 11.2 7.9

Days Cost of Goods Sold inInventory

29 −− 21 −− 32 45

Asset Turnover 1.6 −− 2.0 −− 1.7 0.3

Net Receivables Turnover Flow 41.2 −− 14.8 −− 40.5 7.5

Effective Tax Rate 37.2% −− 0.0% −− 37.1% 32.5%

Financial StarbucksCaribouCoffee1

DiedrichCoffee

DunkinBrands1 Industry 2 Market 3

Current Ratio 1.95 −− 1.15 −− 1.70 1.41

Quick Ratio 1.3 −− 0.7 −− 1.0 1.0

Leverage Ratio 1.36 −− 1.60 −− 1.34 5.96

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Total Debt/Equity 0.00 −− 0.13 −− 0.00 1.40

Interest Coverage −− −− 1.30 −− −− 2.90

Per Share Data ($) StarbucksCaribouCoffee1

DiedrichCoffee

DunkinBrands1 Industry 2 Market 3

Revenue Per Share 14.02 0.00 10.58 0.00 13.50 21.26

Fully Diluted Earnings Per Sharefrom Total Operations

1.03 0.00 0.02 0.00 0.96 1.33

Dividends Per Share 0.00 0.00 0.00 0.00 0.00 0.48

Cash Flow Per Share 1.86 0.00 0.49 0.00 1.76 2.46

Working Capital Per Share 2.02 0.00 0.23 0.00 1.36 2.27

Long−Term Debt Per Share 0.01 0.00 0.32 0.00 0.01 12.02

Book Value Per Share 7.01 0.00 3.24 0.00 6.33 11.27

Total Assets Per Share 9.56 0.00 5.20 0.00 8.50 67.15

Growth StarbucksCaribouCoffee1

DiedrichCoffee

DunkinBrands1 Industry 2 Market 3

12−Month Revenue Growth 28.7% −− 5.3% −− 29.8% 11.1%

12−Month Net Income Growth 41.5% −− −− −− 44.4% 28.1%

12−Month EPS Growth 39.2% −− −− −− 41.2% 20.9%

12−Month Dividend Growth −− −− −− −− −− 9.1%

36−Month Revenue Growth 22.5% −− (4.9%) −− 25.6% 7.3%

36−Month Net Income Growth 24.9% −− −− −− 30.3% 69.0%

36−Month EPS Growth 23.2% −− −− −− 29.1% 70.0%

36−Month Dividend Growth −− −− −− −− −− 4.9%

1 Data unavailable.2 Industry: Specialty EateriesIndustry classifications are from CoreData LLC .3 Public companies trading on the New York Stock Exchange, the American Stock Exchange, and the NASDAQ National Market.

Data Definitions

Some financial information provided byCoreData LLC , Richmond, Virginia

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