STARBUCKS CORPORATION --------------------- EXHIBIT 11 - COMPUTATION OF PER SHARE EARNINGS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE) Three Months Ended December 28, December 29, 1997 1996 (13 Weeks) (13 Weeks) - ---------------------------------------------------------------------------- NET EARNINGS PER COMMON SHARE CALCULATION-BASIC: Net earnings $22,104 $14,390 ============================================================================ Weighted average common shares calculation-basic: Weighted average number of common shares outstanding 84,018 77,725 ============================================================================ Net earnings per common share-basic $ 0.26 $ 0.19 ============================================================================ NET EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE CALCULATION-DILUTED/(1)/: Net earnings calculation: Net earnings $22,104 $14,390 Add after-tax interest expense on Debentures 348 1,075 Add after-tax amortization of issuance costs related to the Debentures 30 89 - ---------------------------------------------------------------------------- Adjusted net earnings $22,482 $15,554 ============================================================================ Weighted average common and common equivalent shares calculation- diluted: Weighted average number of common shares outstanding 84,018 77,725 Dilutive effect of outstanding common stock options 2,999 3,616 Assuming conversion of Convertible Subordinated Debentures 2,808 7,098 - ---------------------------------------------------------------------------- Weighted average common and common equivalent shares-diluted 89,825 88,439 ============================================================================ Net earnings per common and common equivalent share-diluted $ 0.25 $ 0.18 ============================================================================ - --------------------- (1) Diluted earnings per share assumes conversion of the Company's convertible subordinated debentures using the "if converted" method, when such securities are dilutive, with income adjusted for the after-tax interest expense and amortization applicable to these debentures.