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CNBC EXCLUSIVE: CNBC TRANSCRIPT: STARBUCKS CHAIRMAN & CEO HOWARD SCHULTZ ON CNBC TODAY

When: Today, Thursday, Nov. 1, 2012

Where: CNBC's "Closing Bell with Maria Bartiromo"

Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Starbucks Chairman & CEO Howard Schultz today, Thursday, Nov. 1st on CNBC's "Closing Bell with Maria Bartiromo." Additionally , here is the link to video of the interview: http://video.cnbc.com/gallery/?video=3000126613.

All references must be sourced to CNBC.

MARIA BARTIROMO: JOINING ME NOW IN A CNBC EXCLUSIVE FROM A SEATTLE STARBUCKS LOCATION. IS COMPANY CHAIRMAN AND CEO HOWARD SCHULTZ. GOOD TO HAVE YOU ON THE PROGRAM. WELCOME BACK.

HOWARD SCHULTZ: THANK YOU, MARIA. HOW ARE YOU?

BARTIROMO: YOU RAISED YOUR DIVIDEND. YOU RAISED YOUR GUIDANCE. CHARACTERIZE THE QUARTER FOR US.

SCHULTZ: AS YOU CAN SEE, WE HAD A RECORD QUARTER, RECORD YEAR, HIGHLIGHTED BY THE U.S. BUSINESS AT 7% COMPS, 10% COMPS IN ASIA. WE'RE STARTING TO SEE A SLIGHT IMPROVEMENT -- I DON'T WANT TO OVERSTATE THAT -- IN WESTERN EUROPE AND OUR CPG BUSINESS GREW OVER 15% FOR THE YEAR. SO I THINK WHEN YOU LOOK AT THE DOWNTURN THAT WE AND MANY OTHER RETAILERS EXPERIENCED IN Q-3, THIS WAS A STUNNING TURN AROUND THAT REALLY CAST OFF AN EXTRAORDINARY YEAR FOR THE COMPANY.

BARTIROMO: YEAH, IT SOUNDED FOR SURE. CAN YOU TALK ABOUT THE EXPANSION PLANS THAT YOU HAVE BOTH HERE IN THE U.S. AND OVERSEAS? YOU MENTIONED YOU DON'T WANT TO OVERSTATE IT, BUT YOU ARE SEEING IMPROVEMENT IN WESTERN EUROPE WHICH IS INTERESTING AS WELL.

TELL US ABOUT THAT.

SCHULTZ: WELL, WE'RE GOING TO OPEN UP CLOSE TO 1200 NEW STORES NEXT YEAR. WE'RE GOING TO REMODEL PROBABLY 2,000 STORES. I WOULD SAY 70 TO 80% OF THE GROWTH WILL COME OUTSIDE OF NORTH AMERICA. MAINLY IN ASIA. WE'LL GET TO 1,000 STORES TOWARDS THE END OF THE CALENDAR '13 IN CHINA. WE'LL GET TO 1,000 STORES IN JAPAN NEXT YEAR. A WEEK AGO AT THIS TIME, I WAS IN MUMBAI, INDIA, WHERE WE OPENED OUR FIRST OF THREE STORES. SO WE'RE IN A SITUATION RIGHT NOW WHERE, YOU KNOW, AGAIN, I DON'T WANT TO OVERSTATE ANYTHING GIVEN THE BACKDROP OF THE ECONOMY, BUT THE COMPANY IS FIRING ON ALL CYLINDERS. WE'RE VERY OPTIMISTIC ABOUT THE HOLIDAY SEASON. THE INTRODUCTION OF VERISMO. AS I SAID, WE'RE BEGINNING TO SEE MANY OF THE THINGS THAT WE PUT IN PLACE IN THE U.S. BUSINESS IN 2008 DURING OUR OWN TRANSFORMATION BEGINNING TO TAKE HOLD IN WESTERN EUROPE. IT'S GOING TO BE A LONG-TERM EFFORT, BUT WE'RE SEEING THE POSITIVE SIGNS THAT GIVE US CAUTIOUS OPTIMISM.

BARTIROMO: WHAT ABOUT THAT EUROPEAN BUSINESS AND THE JUST ANNOUNCED $40 MILLION PROFIT IN 2011? BUT ALSO, PEOPLE ARE TALKING ABOUT A $60 MILLION LOSS REPORTED TO TAX AUTHORITIES IN THE U.K., GERMANY, AND FRANCE. SOME ARE SAYING INVESTORS ARE BEING TOLD ONE THING AND THE COMPANY IS REPORTING SOMETHING ELSE. CAN YOU CLARIFY THIS FOR US, HOWARD?

SCHULTZ: SURE, I CAN. FIRST OFF, I SAID FROM THE VERY BEGINNING WHEN THIS THING WAS RAISED THAT STARBUCKS AND I AND OUR CFO TROY ALSTEAD WOULD BE AVAILABLE AND 100% TRANSPARENT TO RESPECT THE AUTHORITIES. THE TRUTH OF THE MATTER IS THAT WE HAVE NOT MADE A PROFIT IN MANY OF THOSE MARKETS. AS A RESULT OF THAT, WE HAVE NOT PAID INCOME TAXES. WE HAVE, HOWEVER, PAID SIGNIFICANT AMOUNTS OF TAX OVER THE YEARS IN EUROPE. WE FEEL 100% ASSURED THAT WE ARE WELL WITHIN THE LAW, AND WE FEEL ONCE WE'RE ABLE TO TELL OUR STORY, ALL OF THIS WILL BE RECTIFIED. I THINK THE AUTHORITIES WILL GIVE STARBUCKS THE KIND OF THE RESPECT WE DESERVE.

BARTIROMO: OKAY. WELL, WE'LL KEEP WATCHING ON THAT. I KNOW THIS IS DEVELOPING. WE'LL COME BACK TO THAT. HERE WE ARE A COUPLE OF DAYS AWAY FROM THE ELECTION, HOWARD. YOU WERE VERY, VERY VOCAL OVER THE LAST YEAR ABOUT GETTING OUR FISCAL HOUSE IN ORDER, ABOUT ENSURING THAT OUR LEADERS ACTUALLY LEAD, WHICH OF COURSE MANY PEOPLE WERE VERY DISAPPOINTED IN, PARTICULARLY CONGRESS AND THAT FISCAL CLIFF. TELL ME HOW THINGS ARE TODAY AND WHAT YOU EXPECT OUT OF THE ELECTION ON TUESDAY.

SCHULTZ: WELL, I THINK WE STILL HAVE SIGNIFICANT ISSUES IN TERMS OF THE NEED FOR BIPARTISAN EFFORTS. I THINK IN THE LAST FEW DAYS WITH THE UNFORTUNATE SITUATION WITH HURRICANE SANDY, IT'S IRONIC THAT WE SAW FANTASTIC LEADERSHIP BY BOTH THE PRESIDENT AND GOVERNOR CHRISTIE. I THINK WE SAW THE VERY BEST OF PRESIDENT OBAMA, NOT ONLY LEADING, BUT LEADING WITH A DEEP SENSE OF HUMANITY. AND AS A LIFELONG DEMOCRAT, IT WOULDN'T SURPRISE ANYONE I'M SUPPORTING AND VOTING FOR THE PRESIDENT.

BARTIROMO: OKAY. SO YOU ARE SUPPORTING AND VOTING FOR THE PRESIDENT. YOU WERE UNABLE TO TELL US WHO YOU WERE SUPPORTING BEFORE THIS. HAS IT BEEN HIS LEADERSHIP OVER SANDY THAT CHANGED YOUR MIND? OR WERE YOU ALWAYS IN FAVOR OF THE PRESIDENT?

SCHULTZ: NO, NO. THE PRESIDENT ALWAYS HAD MY VOTE. WHAT I WANTED FROM THE PRESIDENT WAS AN ABILITY TO WORK CLOSELY WITH THE REPUBLICAN CONGRESS TO BE ABLE TO GET THINGS DONE. I THINK HE HAS SHOWN SIGNIFICANT LEADERSHIP, THE KIND OF STEWARDSHIP OF THE ECONOMY IN THE COUNTRY AND WORLD AFFAIRS HE DESERVES TO BE RE-ELECTED. AS A LIFELONG DEMOCRAT, IT DOESN'T SURPRISE ANYONE I'M

SUPPORTING AND VOTING FOR THE PRESIDENT.

BARTIROMO: LET'S TALK ABOUT HURRICANE SANDY FOR A MINUTE. CAN YOU GIVE US AN UPDATE OUT THIS HURRICANE HAS IMPACTED YOUR OPERATION AND THE SUPPLY CHAIN IN THE EFFECTED AREAS? YOU LOOK AT SHOPS AND RESTAURANTS IN THE U.S. A LOT OF THEM ARE CLOSED STILL.

SCHULTZ: WELL, FIRST OFF, AS A LIFELONG NEW YORKER AND MY FAMILY IS STILL IN NEW YORK, I TAKE ALL THIS VERY PERSONALLY. IT'S JUST A DEVASTATING SITUATION. I LOOK AT THE PHOTOS AND TALK TO MY FAMILY, AND IT'S JUST UNBELIEVABLE. WITH REGARD TO STARBUCKS BUSINESS, 80% OF OUR STORES HAVE REOPENED. WE ARE MAKING DELIVERIES. TODAY STARBUCKS MADE A $500,000 DONATION TO BOTH THE RED CROSS AND UNITED WAY. WE'RE TRYING TO DO EVERYTHING WE CAN NOT ONLY TO OPEN UP OUR STORES BUT BE THE KIND OF CITIZEN AND NEIGHBOR TO THOSE PEOPLE WHO NEED US MOST.

BARTIROMO: SO IN TERMS OF THE SUPPLY CHAIN, WHAT ARE YOU SEEING IN TERMS OF COMMODITIES AND FOODS AVAILABLE?

SCHULTZ: WELL STARBUCKS IS MAKING DELIVERIES THE FACILITY THAT WE HAVE IN YORK, PENNSYLVANIA, SERVICES METROPOLITAN NEW YORK AND THE EASTERN SEABOARD. WE'RE MAKING DELIVERIES. NOT ALL OF OUR STORES. I THINK BY MONDAY WE SHOULD BE BACK IN OPERATIONS CLOSE TO 100%. THE STORES WERE CLOSED FOR A WHILE. 80% ARE NOW OPEN. WE'RE PROVIDING A SERVICE TO OUR CUSTOMERS NOT ONLY BY HAVING OUR STORES OPEN, BUT BY PROVIDING WI-FI AND THINGS OUR CUSTOMERS EXPECT FROM US.

BARTIROMO: THE JOBS REPORT OUT TOMORROW. THE UNEMPLOYMENT RATE CAME AS A SURPRISE TO WALL STREET. STARBUCKS HAS A PROGRAM HELPING AMERICANS GET HIRED. DO YOU THINK THE POLICIES ARE DOING ENOUGH TO GENERATE JOBS IN THIS COUNTRY? WHAT WOULD YOU LIKE TO SEE CHANGED TO REALLY MOVE THE NEEDLE ON JOBS?

SCHULTZ: WELL, TODAY'S THE ONE-YEAR ANNIVERSARY OF OUR JOBS INITIATIVE. WE'VE RAISED $15 MILLION, WHICH WAS LEVERAGED UP TO $100 MILLION. THAT EQUATED TO OVER 5,000 JOBS. TO BE HONEST, I DON'T THINK THE GOVERNMENT ON BOTH SIDES HAS DONE ENOUGH TO STIMULATE THE ECONOMY AND REALLY CREATE JOBS IN AMERICA. I'M GLAD TO SEE THE NUMBER GO DOWN IT, BUT LET'S FACE IT, WE STILL HAVE 14 MILLION PEOPLE UNEMPLOYED. CERTAINLY SO MANY PEOPLE ARE BEING LEFT BEHIND AND WE NEED TO DO MORE. I ALSO AM VERY CONCERNED ABOUT THE STATES IN WHICH WE HAVE 42 OF THE 50 STATES FACING A BUDGET DEFICIT. AS A RESULT OF THAT, WE'RE GOING TO SEE CUTS IN SOCIAL SERVICES. THESE ARE THE KIND OF THINGS THAT I HOPE WHOEVER IS ELECTED PRESIDENT WILL BE ABLE TO WORK WITH BOTH SIDES AND FINALLY SEE THE BIPARTISAN COOPERATION THAT WE NEED TO LEAD THE COUNTRY OUT OF THE SITUATION THAT WE'RE IN. AS I SAID, MY VOTE IS FOR THE PRESIDENT.

BARTIROMO: ALL RIGHT. WE'LL LEAVE IT THERE. HOWARD, GOOD TO TALK WITH YOU. THANKS SO MUCH.

SCHULTZ: THANK YOU.

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