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Starbucks' CEO Discusses Q2 2012 Results - Earnings Call Transcript

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 conference call is being webcast, and an archive of the webcast will be available on our website at www.starbucks.com under Investor Relations.

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

Howard D. Schultz

Thank you, JoAnn, and welcome to everyone on today's call. I'm very pleased to report the record second quarter fiscal 2012 results that Starbucks announced today. As we sit here today, Starbucks has 17,420 stores in 58 countries, serving nearly 60 million customers each week.

Our record Q2 revenues and earnings were driven by strong overall global comparable store sales growth, a significant increase in our CPG, what we refer to as Channel Development segment revenues and operational excellence. A strong top line combined with increased efficiencies and continued discipline around controlling costs enabled us to deliver second quarter EPS of $0.40 to our shareholders.

I'm particularly pleased that we were able to accomplish these results despite the challenges posed by high-legacy commodity costs and a particularly difficult consumer environment in Western Europe, further highlighted by the recessionary news out of England just this morning.

I would not ordinarily begin a call with discussion of one particular market, but we had such a memorable trip to China last week that I wanted to share a few of the details with you upfront. Starbucks' business in China is strong and poised for significant disciplined profitable growth. We have seen a tremendous increase in momentum in China since my last trip, as more and more Chinese consumers frequent our stores and connect with the Starbucks brand and store experience.

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