Starbucks Changes ​Financial Reporting on Some of its Operations

By Kimberly Chin

Starbucks Corp. (SBUX) said it would change the way it reports on some of its operations in an effort to mirror the company's streamlining efforts, the retailer said Wednesday.

For the fourth quarter, which it will report on Oct. 30, Starbucks said it will combine its China/Asia Pacific segment with its Europe, Middle East and Africa segment into a single International segment. The company said it will continue to provide supplemental information on two of its biggest sales-growth regions, the U.S. and China.

Additionally, the company will report results from its Starbucks Reserve Roastery and Tasting Rooms, Starbucks Reserve brand and Princi operations --which fall under its Siren Retail operating segment -- under its Americas and International segments, depending on the operations' geographical locations. It previously reported the operations under the Corporate and Other line.

The Seattle coffee chain said it would also re-classify certain costs, reporting cost of sales as store-operating sales.

With the changes, Starbucks said it will restate its GAAP and non-GAAP quarterly results for fiscal 2018 and fiscal 2019 through the third quarter.

The changes won't have an impact on revenues or earnings, the company said.

Write to Kimberly Chin at [e-mail]

(END) Dow Jones Newswires

October 16, 2019 17:56 ET (21:56 GMT)

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