STARBUCKS CORP - Quarter Report: 2025 June (Form 10-Q)

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See Notes to Consolidated Financial Statements.

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STARBUCKS CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY

For the Quarter Ended June 29, 2025 and June 30, 2024

(in millions, except per share data, unaudited)

Common Stock

Additional Paid-in Capital

Retained
Earnings/(Deficit)

Accumulated
Other
Comprehensive
Income/(Loss)

Shareholders’
Equity/(Deficit)

Noncontrolling
Interests

Total

Amount

Balance, March 30, 2025

()

Net earnings

—

Other comprehensive income/(loss)

—

()

Stock-based compensation expense

—

Exercise of stock options/vesting of RSUs

()

Sale of common stock

Cash dividends declared, $ per share

—

()

Other

—

Balance, June 29, 2025

()

Balance, March 31, 2024

()

Net earnings

—

Other comprehensive income

—

Stock-based compensation expense

—

Exercise of stock options/vesting of RSUs

Sale of common stock

Repurchase of common stock (1)

Cash dividends declared, $ per share

—

()

Other

—

()

Balance, June 30, 2024

()

(1)Includes excise tax on share repurchases.

See Notes to Consolidated Financial Statements.

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STARBUCKS CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY

For the Three Quarters Ended June 29, 2025 and June 30, 2024

(in millions, except per share data, unaudited)

Common Stock

Additional Paid-in Capital

Retained
Earnings/(Deficit)

Accumulated
Other
Comprehensive
Income/(Loss)

Shareholders’
Equity/(Deficit)

Noncontrolling
Interests

Total

Amount

Balance, September 29, 2024

()

Net earnings

—

Other comprehensive loss

—

()

Stock-based compensation expense

—

Exercise of stock options/vesting of RSUs

()

Sale of common stock

Cash dividends declared, $ per share

—

()

Other

—

()

Balance, June 29, 2025

()

Balance, October 1, 2023

()

Net earnings

—

Other comprehensive income

—

Stock-based compensation expense

—

Exercise of stock options/vesting of RSUs

()

Sale of common stock

Repurchase of common stock (1)

()

Cash dividends declared, $ per share

—

()

()$ $ $()Product and distribution costs ()Product and distribution costs) Product and distribution costs) ()()Interest expense) Interest expense )() ()Product and distribution costs Product and distribution costs) ()()Interest expense Interest expense ()

(1) Gains and losses recognized in earnings relate to components excluded from the assessment of effectiveness.

$ $ $ Foreign currency - otherInterest income and other, net() () Diesel fuel and other commoditiesInterest income and other, net ()()()Fair Value Hedges:

Interest rate swaps

Interest expense ()()()Long-term debt (hedged item)Interest expense()()()()

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$ Cross-currency swaps Dairy Diesel fuel and other commodities Foreign currency - other Interest rate swaps $ Other long-term assets DairyPrepaid expenses and other current assets Foreign currency - otherPrepaid expenses and other current assets Other long-term assets Non-designated Derivative Instruments:DairyPrepaid expenses and other current assets Diesel fuel and other commoditiesPrepaid expenses and other current assets Foreign currencyPrepaid expenses and other current assets Derivative LiabilitiesBalance Sheet LocationJun 29, 2025Sep 29, 2024Designated Derivative Instruments:Cross-currency swapsAccrued liabilities$ $ Other long-term liabilities Foreign currency - otherAccrued liabilities Other long-term liabilities Interest rate swapsOther long-term liabilities Non-designated Derivative Instruments:Diesel fuel and other commoditiesAccrued liabilities Foreign currencyAccrued liabilities Other long-term liabilities

(1) We also hold cash and cash equivalents from various settled-to-market exchange traded futures related to coffee and dairy hedging.

$ $()$()

Additional disclosures related to cash flow gains and losses included in AOCI, as well as subsequent reclassifications to earnings, are included in Note 11, Equity.

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Note 4:

$ $ $ Short-term investments:Available-for-sale debt securities:Corporate debt securities Mortgage and other asset-backed securities State and local government obligations U.S. government treasury securities Total available-for-sale debt securities Structured deposits Marketable equity securities Total short-term investments Prepaid expenses and other current assets:Derivative assets Long-term investments:Available-for-sale debt securities:Corporate debt securities Mortgage and other asset-backed securities State and local government obligations U.S. government treasury securities Total available-for-sale debt securities Total long-term investments Other long-term assets:Derivative assets Total assets$ $ $ $ Liabilities:Accrued liabilities:Derivative liabilities$ $ $ $ Other long-term liabilities:Derivative liabilities Total liabilities$ $ $ $

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$ $ $ Short-term investments:Available-for-sale debt securities:Corporate debt securities Foreign corporate bonds Mortgage and other asset-backed securities State and local government obligations U.S. government treasury securities Total available-for-sale debt securities Structured deposits Marketable equity securities Total short-term investments Prepaid expenses and other current assets:Derivative assets Long-term investments:Available-for-sale debt securities:Corporate debt securities Mortgage and other asset-backed securities State and local government obligations U.S. government treasury securities Total available-for-sale debt securities Structured deposits Total long-term investmentsOther long-term assets:Derivative assets Total assets$ $ $ $ Liabilities:Accrued liabilities:Derivative liabilities$ $ $ $ Other long-term liabilities:Derivative liabilities Total liabilities$ $ $ $

There were no material transfers between levels, and there was no significant activity within Level 3 instruments during the periods presented. The fair values of any financial instruments presented above exclude the impact of netting assets and liabilities when a legally enforceable master netting agreement exists.

Gross unrealized holding gains and losses on available-for-sale debt securities, structured deposits, and marketable equity securities were not material as of June 29, 2025 and September 29, 2024.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Assets and liabilities recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as property, plant and equipment, right-of-use assets, goodwill and other intangible assets, equity and other investments, and other assets. These assets are measured at fair value if determined to be impaired.

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Note 5: $ Roasted

Other merchandise held for sale (1)

Packaging and other supplies Total$ $

As of June 29, 2025, we had committed to purchasing green coffee totaling $ million under fixed-price contracts and an estimated $ million under price-to-be-fixed contracts. A portion of our price-to-be-fixed contracts are effectively fixed through the use of futures. See Note 3, Derivative Financial Instruments, for further discussion. Price-to-be-fixed contracts are purchase commitments whereby the quality, quantity, delivery period, and other negotiated terms are agreed upon, but the date, and therefore the price, at which the base “C” coffee commodity price component will be fixed has not yet been established. For most contracts, either Starbucks or the seller has the option to “fix” the base “C” coffee commodity price prior to the delivery date. For other contracts, Starbucks and the seller may agree upon pricing parameters determined by the base “C” coffee commodity price. Until prices are fixed, we estimate the total cost of these purchase commitments. We believe, based on established relationships with our suppliers and continuous monitoring, the risk of non-delivery on these purchase commitments is remote.

Note 6:

$ Buildings Leasehold improvements Store equipment Roasting equipment Capitalized software Furniture, fixtures and other Work in progress Property, plant and equipment, gross Accumulated depreciation()()Property, plant and equipment, net$ $ $ Accrued dividends payable Accrued capital and other operating expenditures

Insurance reserves

Income taxes payable Accrued business taxes Total accrued liabilities$ $

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$ $ $ Occupancy costs Other expenses Total store operating expenses$ $ $ $

Note 7:

Finite-Lived Intangible Assets $()$ $ $()$ Acquired trade secrets and processes () () Trade names, trademarks and patents () () Licensing agreements () () Other finite-lived intangible assets () () Total finite-lived intangible assets$ $()$ $ $()$

Amortization expense for finite-lived intangible assets was $ million and $ million for the quarter and three quarters ended June 29, 2025, respectively, and $ million and $ million for the quarter and three quarters ended June 30, 2024, respectively.

2026 2027 2028 2029 Thereafter Total estimated future amortization expense$

Goodwill

$ $ $ $

Acquisition(1)

Other(2)

()() ()

Goodwill balance at June 29, 2025

$ $ $ $ $

(1)

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Note 8:

billion unsecured five-year revolving credit facility (the “2021 credit facility”) with a new $ billion unsecured five-year revolving credit facility (the “2025 credit facility”).

Our 2025 credit facility, of which $ million may be used for issuances of letters of credit, is currently set to mature on . The 2025 credit facility is available for working capital, capital expenditures, and other general corporate purposes, including acquisitions and share repurchases. We have the option, subject to negotiation and agreement with the related banks, to increase the maximum commitment amount by an additional $ billion.

Borrowings under the 2025 credit facility will bear interest at a fluctuating rate based on the Term Secured Overnight Financing Rate (“Term SOFR”), and, for U.S. dollar-denominated loans under certain circumstances, a Base Rate (as defined in the 2025 credit facility), in each case plus an applicable rate. The applicable rate is based on the Company’s long-term credit ratings assigned by Moody’s and Standard & Poor’s rating agencies. The 2025 credit facility contains alternative interest rate provisions specifying rate calculations to be used at such time Term SOFR ceases to be available as a benchmark due to reference rate reform. The “Base Rate” of interest is the highest of (i) the Federal Funds Rate plus %, (ii) Bank of America’s prime rate, (iii) Term SOFR plus %, and (iv) %. Upon the occurrence of any event of default under the 2025 credit facility, interest on the outstanding amount of the indebtedness under the 2025 credit facility will bear interest at a rate per annum equal to % in excess of the interest then borne by such borrowings.

The 2025 credit facility contains provisions requiring us to maintain compliance with certain covenants, including a minimum fixed charge coverage ratio, which measures our ability to cover financing expenses. As of June 29, 2025, we were in compliance with all applicable covenants. amounts were outstanding under our 2025 credit facility as of June 29, 2025, or our 2021 credit facility as of September 29, 2024.

Short-term Debt

Under our commercial paper program, we may issue unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time of $ billion, with individual maturities that may vary but not exceed days from the date of issue. Amounts outstanding under the commercial paper program are required to be backstopped by available commitments under our 2025 credit facility. The proceeds from borrowings under our commercial paper program may be used for working capital needs, capital expenditures, and other corporate purposes, including, but not limited to, business expansion, payment of cash dividends on our common stock, and share repurchases. We had borrowings outstanding under our commercial paper program as of June 29, 2025 and September 29, 2024. Our total available contractual borrowing capacity for general corporate purposes was $ billion as of the end of our third quarter of fiscal 2025.

Additionally, we hold the following Japanese yen-denominated credit facilities that are available for working capital needs and capital expenditures within our Japanese market:

•A ¥ billion, or $ million, credit facility is currently set to mature on . Borrowings under this credit facility are subject to terms defined within the facility and will bear interest at a variable rate based on Tokyo Interbank Offered Rate (“TIBOR”) plus an applicable margin of %.

As of June 29, 2025 and September 29, 2024, we had borrowings outstanding under these credit facilities.

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Long-term Debt

2026 2027 2028 2029 Thereafter Total$

Note 9:

$ $ $ Variable lease costs Short-term lease costs Total lease costs$ $ $ $

(1)

Operating lease liabilities arising from obtaining right-of-use assets(1)

Jun 29, 2025Jun 30, 2024Weighted-average remaining operating lease term years yearsWeighted-average operating lease discount rate % %

(1)

Finance lease assets are recorded in property, plant and equipment, net with the corresponding lease liabilities included in accrued liabilities and other long-term liabilities on the consolidated balance sheets. These balances were not material as of June 29, 2025 and September 29, 2024. Finance lease costs were also immaterial for the quarters ended June 29, 2025 and June 30, 2024.

2026 2027 2028 2029 Thereafter Total lease payments Less imputed interest()Total$

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billion, primarily related to real estate leases. These leases will commence between fiscal year 2025 and fiscal year 2029 with lease terms ranging from to years.

Note 10:

million and $ billion, respectively. As of September 29, 2024, the current and long-term deferred revenue related to the Nestlé up-front payment was $ million and $ billion, respectively. During each of the quarters ended June 29, 2025 and June 30, 2024, we recognized $ million of prepaid royalty revenue related to Nestlé. During each of the three quarters ended June 29, 2025 and June 30, 2024, we recognized $ million of prepaid royalty revenue related to Nestlé. Revenue deferred - card activations, card reloads and Stars earned Revenue recognized - card and Stars redemptions and breakage()

Other(1)

Stored value cards and loyalty program at June 29, 2025(2)

Quarter Ended June 30, 2024

Total

Stored value cards and loyalty program at March 31, 2024

$ Revenue deferred - card activations, card reloads and Stars earned Revenue recognized - card and Stars redemptions and breakage()

Other(1)

()

Stored value cards and loyalty program at June 30, 2024(2)

Three Quarters Ended June 29, 2025

Total

Stored value cards and loyalty program at September 29, 2024

$ Revenue deferred - card activations, card reloads and Stars earned Revenue recognized - card and Stars redemptions and breakage()

Other(1)

()

Stored value cards and loyalty program at June 29, 2025(2)

Three Quarters Ended June 30, 2024

Total

Stored value cards and loyalty program at October 1, 2023

$ Revenue deferred - card activations, card reloads and Stars earned Revenue recognized - card and Stars redemptions and breakage()

Other(1)

()

Stored value cards and loyalty program at June 30, 2024(2)

(1)

(2) billion and $ billion, respectively, of these amounts were current.

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Note 11:

)$ $ $()$()Net gains/(losses) recognized in OCI before reclassifications ()() Net (gains)/losses reclassified from AOCI to earnings ()() ()Other comprehensive income/(loss) attributable to Starbucks ()() ()Other comprehensive income/(loss) attributable to NCI Net gains/(losses) in AOCI, end of period$()$()$ $()$()June 30, 2024Net gains/(losses) in AOCI, beginning of period$()$ $ $()$()Net gains/(losses) recognized in OCI before reclassifications () Net (gains)/losses reclassified from AOCI to earnings ()()()Other comprehensive income/(loss) attributable to Starbucks () Net gains/(losses) in AOCI, end of period$()$ $ $()$()Three Quarters EndedAvailable-for-Sale Debt SecuritiesCash Flow HedgesNet Investment HedgesTranslation Adjustment and OtherTotalJune 29, 2025Net gains/(losses) in AOCI, beginning of period$()$ $ $()$()Net gains/(losses) recognized in OCI before reclassifications () () Net (gains)/losses reclassified from AOCI to earnings ()() ()Other comprehensive income/(loss) attributable to Starbucks () ()()Other comprehensive income/(loss) attributable to NCI ()()Net gains/(losses) in AOCI, end of period$()$()$ $()$()June 30, 2024Net gains/(losses) in AOCI, beginning of period$()$()$ $()$()Net gains/(losses) recognized in OCI before reclassifications () Net (gains)/losses reclassified from AOCI to earnings ()() Other comprehensive income/(loss) attributable to Starbucks () Other comprehensive income/(loss) attributable to NCI Net gains/(losses) in AOCI, end of period$()$ $ $()$()

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)$()Interest income and other, netGains/(losses) on cash flow hedges

Please refer to Note 3, Derivative Financial Instruments for additional information.

Gains/(losses) on net investment hedges Interest expense

Translation adjustment(1)

Other— 0.1 Interest income and other, net Total before tax()()

Tax (expense)/benefit

$ $ Net of taxThree Quarters EndedAOCI
ComponentsAmounts Reclassified from AOCIAffected Line Item in
the Statements of EarningsJun 29, 2025Jun 30, 2024Gains/(losses) on available-for-sale debt securities$()$()Interest income and other, netGains/(losses) on cash flow hedges ()

Please refer to Note 3, Derivative Financial Instruments for additional information.

Gains/(losses) on net investment hedges Interest expense

Translation adjustment(1)

Other Interest income and other, net Total before tax()()Tax (expense)/benefit$ $()Net of tax

(1)Release of cumulative translation adjustments and other activities to earnings upon sale, liquidation, or dissolution of foreign business.

In addition to billion shares of authorized common stock with $ par value per share, we have million shares of authorized preferred stock, of which was outstanding as of June 29, 2025.

During the three quarters ended June 29, 2025, we made share repurchases. During the three quarters ended June 30, 2024, we repurchased million shares of common stock on the open market for $ million. As of June 29, 2025, million shares remained available for repurchase under current authorizations.

During the third quarter of fiscal 2025, our Board of Directors approved a quarterly cash dividend to shareholders of $ per share to be paid on August 29, 2025 to shareholders of record as of the close of business on August 15, 2025.

Note 12:

million shares of common stock available for issuance pursuant to future equity-based compensation awards and million shares available for issuance under our employee stock purchase plan. $ $ $ Options () ()Total stock-based compensation expense$ $ $ $

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Granted Options exercised/RSUs vested()()Forfeited/expired ()

Options outstanding/Nonvested RSUs, June 29, 2025

Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of June 29, 2025

$ $

Note 13:

$ $ $ Weighted average common shares outstanding (for basic calculation) Dilutive effect of outstanding common stock options and RSUs Weighted average common and common equivalent shares outstanding (for diluted calculation) EPS — basic$ $ $ $ EPS — diluted$ $ $ $

, which were immaterial in the periods presented.

Note 14:

Note 15:

%$ %$ %$ %

Food(2)

% % % %

Other(3)

% % % %Total$ %$ %$ %$ %

(1)“

(2)“

(3)“

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$ $ $ $ Depreciation and amortization expenses

Income/(loss) from equity investees

() Operating income/(loss)$ $ $ $()$ June 30, 2024Total net revenues$ $ $ $ $ Depreciation and amortization expenses

Income/(loss) from equity investees

Operating income/(loss)$ $ $ $()$ Three Quarters EndedNorth AmericaInternationalChannel DevelopmentCorporate and OtherTotalJune 29, 2025Total net revenues$ $ $ $ $ Depreciation and amortization expenses Income from equity investees () Operating income/(loss)$ $ $ $()$ June 30, 2024Total net revenues$ $ $ $ $ Depreciation and amortization expenses Income from equity investees Operating income/(loss)$ $ $ $()$

Note 16:

million and $ million, respectively, primarily associated with partner severance costs. These costs were recorded to restructuring on our consolidated statement of earnings. As of June 29, 2025, approximately $ million of severance costs remained in accrued payroll and benefits on our consolidated balance sheet. We expect additional restructuring costs in the fourth quarter of fiscal 2025, which may, in the aggregate, be material. These are primarily related to the evaluation of our store portfolio and restructuring our support organization, including the recently announced voluntary resignation program.

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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

CAUTIONARY STATEMENT PURSUANT TO THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Certain statements contained herein are “forward-looking” statements within the meaning of applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections. Our forward-looking statements, and the risks and uncertainties related thereto, include, but are not limited to, those described under the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our most recently filed 10-K and 10-Q and in other reports we file with the SEC, as well as, among others:

• our ability to preserve, grow, and leverage our brands, including the risk of negative responses by consumers (such as boycotts or negative publicity campaigns), governmental actors (such as retaliatory or threatened legislative treatment or other actions), or other third parties who object to certain actions taken or not taken by the Company, whose responses could adversely affect our brand value;

• the impact of our marketing strategies, promotional and advertising plans, pricing strategies, platforms, reformulations, innovations, or customer experience initiatives or investments;

• the costs and risks associated with, and the successful and timely execution and effects of, our existing and any future business opportunities, expansions, initiatives, strategies, investments, and plans, including our “Back to Starbucks” plan;

• the costs and risks associated with, and the successful execution and effects of, strategic changes to our ownership and operating structure, including as a result of acquisitions, divestitures, or entry into joint ventures;

• our ability to align our investment efforts with our strategic goals;

• changes in consumer preferences, demand, consumption, or spending behavior, including due to shifts in demographic or health and wellness trends, reduction in discretionary spending and price increases, and our ability to anticipate or react to these changes;

• the ability of our business partners, suppliers, and third-party providers to fulfill their responsibilities and commitments;

• the potential negative effects of reported incidents involving food- or beverage-borne illnesses, tampering, adulteration, contamination, or mislabeling;

• our ability to open new stores and efficiently maintain the attractiveness of our existing stores;

• our dependence on the financial performance of our North America operating segment, and our increasing dependence on certain international markets;

• our anticipated cash requirements and operating expenses, including our anticipated total capital expenditures;

• inherent risks of operating a global business, including changing conditions in our markets, local factors affecting store openings, protectionist trade or foreign investment policies, such as imposed or threatened to be imposed tariffs and other trade controls, economic or trade sanctions, compliance with local laws and other regulations, and local labor policies and conditions, including labor strikes and work stoppages;

• higher costs, lower quality, or unavailability of coffee, dairy, cocoa, energy, water, raw materials, or product ingredients;

• the potential impact on our supply chain and operations of adverse weather conditions, natural disasters, or significant increases in logistics costs;

• the ability of our supply chain to meet current or future business needs and our ability to scale and improve our forecasting, planning, production, and logistics management;

• a worsening in the terms and conditions upon which we engage with our manufacturers and source suppliers, whether resulting from broader local or global conditions or dynamics specific to our relationships with such parties;

• the impact of unfavorable global or regional economic conditions and related economic slowdowns or recessions, low consumer confidence, high unemployment, weak credit or capital markets, budget deficits, burdensome government debt, austerity measures, higher interest rates, higher taxes, international trade disputes, government restrictions, geopolitical instability, higher inflation, or deflation;

• failure to meet our announced guidance or market expectations and the impact thereof;

• failure to attract or retain key executive or partner talent or successfully onboard or transition executives;

• the impacts of partner investments, business transformation initiatives, including those related to our workforce, and changes in the availability and cost of labor, including any union organizing efforts and our responses to such efforts;

• the impact of foreign currency translation, particularly a stronger U.S. dollar;

• the impact of, and our ability to respond to, substantial competition from new entrants, consolidations by competitors, and other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods), marketing, category expansion, product introductions, or entry or expansion in our geographic markets;

• potential impacts of climate change;

• evolving corporate governance and public disclosure regulations and expectations;

• the potential impact of activist shareholder actions or tactics;

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• failure to comply with applicable laws and changing legal and regulatory requirements;

• the impact or likelihood of significant legal disputes and proceedings or government investigations;

• potential negative effects of, and our ability to respond to, a material failure, inadequacy, or interruption of our information technology systems or those of our third-party business partners or service providers, or failure to comply with data protection laws; and

• our ability to adequately protect our intellectual property or adequately ensure that we are not infringing the intellectual property of others.

In addition, many of the foregoing risks and uncertainties are, or could be, exacerbated by any worsening of the global business and economic environment. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this report. We are under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise.

This information should be read in conjunction with the unaudited consolidated financial statements and the notes included in Item 1 of Part I of this 10-Q and the audited consolidated financial statements and notes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”), contained in the 10-K.

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Introduction and Overview

Starbucks is the premier roaster, marketer, and retailer of specialty coffee globally, with a presence in 88 markets worldwide. As of June 29, 2025, Starbucks had more than 41,000 company-operated and licensed stores, an increase of 4% from the prior year. Additionally, we sell a variety of consumer-packaged goods, primarily through the Global Coffee Alliance established with Nestlé and other partnerships and joint ventures.

We have three reportable operating segments: 1) North America, which is inclusive of the U.S. and Canada; 2) International, which is inclusive of China, Japan, Asia Pacific, Europe, Middle East, Africa, Latin America, and the Caribbean; and 3) Channel Development. Unallocated corporate expenses are reported within Corporate and Other.

We believe our financial results and long-term growth model will continue to be driven by new store openings, comparable store sales, and operating margin management, underpinned by disciplined capital allocation. We believe these key operating metrics are useful to investors because management uses these metrics to assess the growth of our business and the effectiveness of our marketing and operational strategies. Throughout this MD&A, we commonly discuss the following key operating metrics:

•New store openings and store count

•Comparable store sales

•Operating margin

Comparable store sales represents the percentage change in sales in one period from the same prior year period for company-operated stores open for 13 months or longer and excludes the impact of foreign currency translation. We analyze comparable store sales on a constant currency basis as this helps identify underlying business trends, without distortion from the effects of currency movements. Stores that are temporarily closed or operating at reduced hours remain in comparable store sales while stores identified for permanent closure have been removed.

Our fiscal year ends on the Sunday closest to September 30. Fiscal 2025 and 2024 include 52 weeks. All references to store counts, including data for new store openings, are reported net of store closures, unless otherwise noted.

Starbucks results for the third quarter of fiscal 2025 showed continued progress on key “Back to Starbucks” initiatives, specifically investments in coffeehouse partners, including the Leadership Experience 2025, a conference designed to empower and motivate our retail leaders to accelerate our “Back to Starbucks” strategy, as we work to rebuild a stronger Starbucks. During the third quarter of fiscal 2025, consolidated net revenues increased 4% to $9.5 billion compared to $9.1 billion in the third quarter of fiscal 2024, primarily driven by incremental revenues from net new company-operated store openings over the past 12 months, partially offset by a decrease in global comparable store sales. During the quarter ended June 29, 2025, our global comparable store sales declined 2%, primarily driven by a 2% decline in the U.S. market. Specific to the U.S. market, the decrease in comparable store sales was driven by a 4% decrease in comparable transactions, partially offset by a 2% increase in average ticket, primarily due to fewer discounts in the current year. Consolidated operating margin contracted 680 basis points from the prior year to 9.9%, primarily driven by deleverage, investments in support of “Back to Starbucks,” including additional labor and the Leadership Experience 2025, and inflation, primarily driven by elevated coffee pricing.

For the balance of this fiscal year, we expect that the macroeconomic challenges we have been experiencing, including impacts from new tariffs and volatile coffee prices, will continue; however we are encouraged by the results we have seen from our “Back to Starbucks” initiatives and early results from our pilots. For example, as a result of compelling early insights, we have decided to accelerate the rollout of the Green Apron Service model, a new foundational operating model that establishes repeatable, consistent, and scalable standards, across U.S. company-operated stores in the next few months. We will continue to prioritize disciplined capital investments in our stores, and we are conducting a comprehensive evaluation of our store portfolio, which we expect will be complete by the end of the fiscal year and result in additional material restructuring charges. Additionally, we will continue our efforts to identify a strategic partner with a similar vision and values to help us capture future growth opportunities in China. Our focus will continue to be on the long-term, sustainable growth of the company. We believe the actions we are taking now and in the future, specifically through our investments in store partners, uplifting the coffeehouse experience, introducing new food and beverage platforms, and reimagining the Starbucks rewards program, paired with disciplined prioritization, while driving more efficiency, accountability, and agility as a company, will lay the foundation for the future of Starbucks.

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Results of Operations (in millions)

Revenues


	Quarter Ended								Three Quarters Ended
	Jun 29, 2025		Jun 30, 2024		$ Change		% Change		Jun 29, 2025		Jun 30, 2024		$ Change		% Change
Company-operated stores	$	7,812.5	$	7,516.0	$	296.5	3.9	%	$	22,882.9	$	22,323.8	$	559.1	2.5	%
Licensed stores	1,105.6		1,129.0		(23.4)		(2.1)		3,257.3		3,375.7		(118.4)		(3.5)
Other	537.9		468.9		69.0		14.7		1,475.2		1,402.8		72.4		5.2
Total net revenues	$	9,456.0	$	9,113.9	$	342.1	3.8	%	$	27,615.4	$	27,102.3	$	513.1	1.9	%

For the quarter ended June 29, 2025 compared with the quarter ended June 30, 2024

Total net revenues for the third quarter of fiscal 2025 increased $342 million, primarily due to higher revenues from company-operated stores ($297 million) and other revenues ($69 million), partially offset by a decrease in revenues from licensed stores ($23 million).

Company-operated store revenue increased $297 million, primarily driven by incremental revenues from 1,151 net new company-operated stores, or a 6% increase, over the past 12 months ($330 million). Also contributing to the overall increase in company-operated store revenue were favorable foreign currency translation impacts ($45 million) and incremental revenue from the conversion of 113 licensed stores to company-operated stores ($36 million) following the acquisition of 23.5 Degrees Topco Limited, a U.K. licensed business partner, during the first quarter of fiscal 2025. These increases in net revenue were partially offset by a 2% decrease in comparable store sales ($122 million), attributable to a 2% decrease in comparable transactions, partially offset by a 1% increase in average ticket.

Licensed stores revenue decreased $23 million, primarily driven by lower product and equipment sales to, and royalty revenues from, our licensees in our North America segment ($37 million) and the impact of the acquisition of 23.5 Degrees Topco Limited ($9 million). These decreases in licensed stores revenue were partially offset by an increase in product and equipment sales to, and royalty revenues from, our licensees in our International segment ($28 million).

Other revenues increased $69 million, primarily due to an increase in revenue in the Global Coffee Alliance ($45 million) and increased sales of cocoa butter to third parties ($20 million).

For the three quarters ended June 29, 2025 compared with the three quarters ended June 30, 2024

Total net revenues for the first three quarters of fiscal 2025 increased $513 million, primarily due to higher revenues from company-operated stores ($559 million) and other revenues ($72 million), partially offset by a decrease in revenues from licensed stores ($118 million).

Company-operated store revenue increased $559 million, primarily driven by incremental revenues from 1,151 net new company-operated stores, or a 6% increase, over the past 12 months ($927 million) and incremental revenue from the conversion of 113 licensed stores to company-operated stores ($93 million) following the acquisition of 23.5 Degrees Topco Limited. These increases in net revenue were partially offset by a 2% decrease in comparable store sales ($453 million), attributable to a 4% decrease in comparable transactions, partially offset by a 2% increase in average ticket.

Licensed stores revenue decreased $118 million, primarily driven by lower product and equipment sales to, and royalty revenues from, our licensees in our North America segment ($112 million), the impact of the acquisition of 23.5 Degrees Topco Limited ($26 million), and by unfavorable foreign currency translation impacts ($22 million). These decreases were partially offset by an increase in product and equipment sales to, and royalty revenues from, our licensees in our International segment ($49 million).

Other revenues increased $72 million, primarily due to increased sales of cocoa butter to third parties ($34 million) and an increase in revenue in the Global Coffee Alliance ($27 million).

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Operating Expenses


	Quarter Ended										Three Quarters Ended
	Jun 29, 2025		Jun 30, 2024		$ Change		Jun 29, 2025		Jun 30, 2024		Jun 29, 2025		Jun 30, 2024		$ Change		Jun 29, 2025		Jun 30, 2024
							As a % of Total Net Revenues										As a % of Total Net Revenues
Product and distribution costs	$	2,955.5	$	2,740.9	$	214.6	31.3	%	30.1	%	$	8,586.8	$	8,370.2	$	216.6	31.1	%	30.9	%
Store operating expenses	4,344.8		3,829.1		515.7		45.9		42.0		12,723.9		11,404.7		1,319.2		46.1		42.1
Other operating expenses	151.6		143.9		7.7		1.6		1.6		442.8		427.1		15.7		1.6		1.6
Depreciation and amortization expenses	427.6		380.4		47.2		4.5		4.2		1,254.0		1,117.6		136.4		4.5		4.1
General and administrative expenses	677.2		576.0		101.2		7.2		6.3		1,975.2		1,878.6		96.6		7.2		6.9
Restructuring	20.8		—		20.8		0.2		—		137.0		—		137.0		0.5		—

Total operating expenses	8,577.5		7,670.3		907.2		90.7		84.2		25,119.7		23,198.2		1,921.5		91.0		85.6
Income from equity investees	57.1		73.9		(16.8)		0.6		0.8		162.7		197.8		(35.1)		0.6		0.7

Operating income	$	935.6	$	1,517.5	$	(581.9)	9.9	%	16.7	%	$	2,658.4	$	4,101.9	$	(1,443.5)	9.6	%	15.1	%
Store operating expenses as a % of company-operated stores revenue							55.6	%	50.9	%							55.6	%	51.1	%

For the quarter ended June 29, 2025 compared with the quarter ended June 30, 2024

Product and distribution costs as a percentage of total net revenues increased 120 basis points for the third quarter of fiscal 2025, largely due to inflation (approximately 100 basis points), primarily driven by elevated coffee pricing.

Store operating expenses as a percentage of total net revenues increased 390 basis points for the third quarter of fiscal 2025. Store operating expenses as a percentage of company-operated stores revenue increased 470 basis points, primarily due to additional labor (approximately 160 basis points), deleverage (approximately 150 basis points), and increased marketing (approximately 90 basis points).

Other operating expenses increased $8 million, primarily due to support costs for our licensed markets.

Depreciation and amortization expenses as a percentage of total net revenues increased 30 basis points, primarily due to deleverage.

General and administrative expenses increased $101 million, primarily due to the Leadership Experience 2025 ($81 million).

Restructuring was $21 million, largely due to costs associated with simplifying our support organization, primarily severance costs, in support of our “Back to Starbucks” strategy.

Income from equity investees decreased $17 million, primarily due to lower income from our North American Coffee Partnership joint venture.

The combination of these changes resulted in an overall decrease in operating margin of 680 basis points for the third quarter of fiscal 2025.

For the three quarters ended June 29, 2025 compared with the three quarters ended June 30, 2024

Product and distribution costs as a percentage of total net revenues increased 20 basis points for the first three quarters of fiscal 2025, primarily due to inflation (approximately 70 basis points), partially offset by supply chain efficiencies (approximately 50 basis points).

Store operating expenses as a percentage of total net revenues increased 400 basis points for the first three quarters of fiscal 2025. Store operating expenses as a percentage of company-operated stores revenue increased 450 basis points, primarily due to deleverage (approximately 200 basis points), additional labor (approximately 160 basis points), and increased marketing (approximately 90 basis points).

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Other operating expenses increased $16 million, primarily due to support costs for our licensed markets.

Depreciation and amortization expenses as a percentage of total net revenues increased 40 basis points, primarily due to deleverage.

General and administrative expenses increased $97 million, primarily due to the Leadership Experience 2025 ($81 million).

Restructuring was $137 million, largely due to costs associated with simplifying our support organization, primarily severance costs, in support of our “Back to Starbucks” strategy.

Income from equity investees decreased $35 million, primarily due to lower income from our North American Coffee Partnership joint venture.

The combination of these changes resulted in an overall decrease in operating margin of 550 basis points for the first three quarters of fiscal 2025.

Other Income and Expenses


	Quarter Ended										Three Quarters Ended
	Jun 29, 2025		Jun 30, 2024		$ Change		Jun 29, 2025		Jun 30, 2024		Jun 29, 2025		Jun 30, 2024		$ Change		Jun 29, 2025		Jun 30, 2024
							As a % of Total Net Revenues										As a % of Total Net Revenues
Operating income	$	935.6	$	1,517.5	$	(581.9)	9.9	%	16.7	%	$	2,658.4	$	4,101.9	$	(1,443.5)	9.6	%	15.1	%


Interest income and other, net	25.6		28.1		(2.5)		0.3		0.3		81.8		96.0		(14.2)		0.3		0.4
Interest expense	(142.3)		(141.3)		(1.0)		(1.5)		(1.6)		(396.8)		(422.0)		25.2		(1.4)		(1.6)
Earnings before income taxes	818.9		1,404.3		(585.4)		8.7		15.4		2,343.4		3,775.9		(1,432.5)		8.5		13.9
Income tax expense	260.4		348.6		(88.2)		2.8		3.8		619.9		923.2		(303.3)		2.2		3.4
Net earnings including noncontrolling interests	558.5		1,055.7		(497.2)		5.9		11.6		1,723.5		2,852.7		(1,129.2)		6.2		10.5
Net earnings/(loss) attributable to noncontrolling interests	0.2		0.9		(0.7)		0.0		0.0		0.3		1.0		(0.7)		0.0		0.0
Net earnings attributable to Starbucks	$	558.3	$	1,054.8	$	(496.5)	5.9	%	11.6	%	$	1,723.2	$	2,851.7	$	(1,128.5)	6.2	%	10.5	%
Effective tax rate including noncontrolling interests							31.8	%	24.8	%							26.5	%	24.4	%

For the quarter ended June 29, 2025 compared with the quarter ended June 30, 2024

The effective tax rate for the quarter ended June 29, 2025 was 31.8% compared to 24.8% for the same period in fiscal 2024. The increase was primarily due to the discrete impact of changes in indefinite reinvestment assertions for certain foreign entities in the third quarter of fiscal 2025 (approximately 850 basis points).

For the three quarters ended June 29, 2025 compared with the three quarters ended June 30, 2024

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Interest income and other, net, decreased $14 million, primarily due to lower cash balances and lower interest rates in the current year.

Interest expense decreased $25 million, primarily due to savings from cross-currency interest rate hedging, partially offset by higher interest rates on refinanced long-term debt.

The effective tax rate for the first three quarters ended June 29, 2025 was 26.5% compared to 24.4% for the same period in fiscal 2024. The increase was primarily due to the discrete impact of changes in indefinite reinvestment assertions for certain foreign entities in the third quarter of fiscal 2025 (approximately 300 basis points), partially offset by the discrete impact of a tax status change for a certain foreign entity (approximately 130 basis points).

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Segment Information

Results of operations by segment (in millions):

North America


	Quarter Ended										Three Quarters Ended
	Jun 29, 2025		Jun 30, 2024		$ Change		Jun 29, 2025		Jun 30, 2024		Jun 29, 2025		Jun 30, 2024		$ Change		Jun 29, 2025		Jun 30, 2024
							As a % of North America Total Net Revenues										As a % of North America Total Net Revenues
Net revenues:
Company-operated stores	$	6,285.7	$	6,135.0	$	150.7	90.7	%	90.0	%	$	18,515.3	$	18,240.7	$	274.6	90.4	%	89.8	%
Licensed stores	640.5		681.3		(40.8)		9.2		10.0		1,953.5		2,074.1		(120.6)		9.5		10.2
Other	0.8		0.4		0.4		0.0		0.0		2.9		2.8		0.1		0.0		0.0
Total net revenues	6,927.0		6,816.7		110.3		100.0		100.0		20,471.7		20,317.6		154.1		100.0		100.0
Product and distribution costs	1,909.6		1,831.9		77.7		27.6		26.9		5,684.3		5,623.5		60.8		27.8		27.7
Store operating expenses	3,552.4		3,131.1		421.3		51.3		45.9		10,442.5		9,316.2		1,126.3		51.0		45.9
Other operating expenses	69.7		69.5		0.2		1.0		1.0		216.6		214.0		2.6		1.1		1.1
Depreciation and amortization expenses	303.5		266.6		36.9		4.4		3.9		891.6		774.2		117.4		4.4		3.8
General and administrative expenses	170.0		84.9		85.1		2.5		1.2		363.9		287.9		76.0		1.8		1.4
Restructuring	3.1		—		3.1		—		—		24.5		—		24.5		0.1		0.0
Total operating expenses	6,008.3		5,384.0		624.3		86.7		79.0		17,623.4		16,215.8		1,407.6		86.1		79.8

Operating income	$	918.7	$	1,432.7	$	(514.0)	13.3	%	21.0	%	$	2,848.3	$	4,101.8	$	(1,253.5)	13.9	%	20.2	%
Store operating expenses as a % of company-operated stores revenue							56.5	%	51.0	%							56.4	%	51.1	%

For the quarter ended June 29, 2025 compared with the quarter ended June 30, 2024

Revenues

North America total net revenues for the third quarter of fiscal 2025 increased $110 million, or 2%, primarily driven by net new company-operated store growth of 5%, or 513 stores, over the past 12 months ($266 million). This growth was partially offset by a net 2% decrease in comparable store sales ($116 million), driven by a 3% decrease in comparable transactions, partially offset by a 1% increase in average ticket, primarily due to fewer discounts in the current year. Also contributing were lower product and equipment sales to, and royalty revenues from, our licensees ($37 million).

Operating Margin

North America operating income for the third quarter of fiscal 2025 decreased 36% to $919 million, compared to $1.4 billion in the third quarter of fiscal 2024. Operating margin contracted 770 basis points to 13.3%, primarily driven by deleverage (approximately 250 basis points), investments in support of “Back to Starbucks,” including additional labor (approximately 170 basis points) and the Leadership Experience 2025 (approximately 120 basis points), and inflation (approximately 110 basis points), primarily driven by elevated coffee pricing.

For the three quarters ended June 29, 2025 compared with the three quarters ended June 30, 2024

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Revenues

North America total net revenues for the first three quarters of fiscal 2025 increased $154 million, or 1%, primarily driven by net new company-operated store growth 5%, or 513 stores, over the past 12 months ($722 million). This growth was partially offset by a net 2% decrease in comparable store sales ($420 million) driven by a 5% decrease in comparable transactions, partially offset by a 3% increase in average ticket, primarily due to annualization of prior year pricing and fewer discounts in the current year. Also contributing were lower product and equipment sales to, and royalty revenues from, our licensees ($112 million).

Operating Margin

North America operating income for the first three quarters of fiscal 2025 decreased 31% to $2.8 billion, compared to $4.1 billion in the first three quarters of fiscal 2024. Operating margin contracted 630 basis points to 13.9%, primarily driven by deleverage (approximately 320 basis points), additional labor (approximately 180 basis points), and inflation (approximately 70 basis points).

International


	Quarter Ended										Three Quarters Ended
	Jun 29, 2025		Jun 30, 2024		$ Change		Jun 29, 2025		Jun 30, 2024		Jun 29, 2025		Jun 30, 2024		$ Change		Jun 29, 2025		Jun 30, 2024
							As a % of International Total Net Revenues										As a % of International Total Net Revenues
Net revenues:
Company-operated stores	$	1,526.8	$	1,381.0	$	145.8	75.9	%	75.0	%	$	4,367.6	$	4,083.1	$	284.5	76.0	%	75.0	%
Licensed stores	465.1		447.7		17.4		23.1		24.3		1,303.8		1,301.6		2.2		22.7		23.9
Other	18.8		13.4		5.4		0.9		0.7		77.7		60.9		16.8		1.4		1.1
Total net revenues	2,010.7		1,842.1		168.6		100.0		100.0		5,749.1		5,445.6		303.5		100.0		100.0
Product and distribution costs	701.7		637.1		64.6		34.9		34.6		2,008.4		1,923.5		84.9		34.9		35.3
Store operating expenses	792.4		698.0		94.4		39.4		37.9		2,281.4		2,088.5		192.9		39.7		38.4
Other operating expenses	66.2		58.8		7.4		3.3		3.2		181.8		168.8		13.0		3.2		3.1
Depreciation and amortization expenses	91.4		82.7		8.7		4.5		4.5		269.5		251.0		18.5		4.7		4.6
General and administrative expenses	81.9		80.5		1.4		4.1		4.4		259.1		253.9		5.2		4.5		4.7
Restructuring	3.1		—		3.1		0.2		—		19.9		—		19.9		0.3		—
Total operating expenses	1,736.7		1,557.1		179.6		86.4		84.5		5,020.1		4,685.7		334.4		87.3		86.0
Income/(loss) from equity investees	(1.3)		2.5		(3.8)		(0.1)		0.1		(2.1)		2.9		(5.0)		0.0		0.1
Operating income	$	272.7	$	287.5	$	(14.8)	13.6	%	15.6	%	$	726.9	$	762.8	$	(35.9)	12.6	%	14.0	%
Store operating expenses as a % of company-operated stores revenue							51.9	%	50.5	%							52.2	%	51.1	%

For the quarter ended June 29, 2025 compared with the quarter ended June 30, 2024

Revenues

International total net revenues for the third quarter of fiscal 2025 increased $169 million, or 9%, primarily due to net new company-operated store growth of 7%, or 638 stores, over the past 12 months ($63 million), favorable foreign currency translation impacts ($48 million), and higher product and equipment sales to, and royalty revenues from, our licensees ($28 million), primarily due to the opening of 446 net new licensed stores over the past 12 months. Also contributing to the increase

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in revenues was the incremental net revenue from the conversion of 113 licensed stores to company-operated stores ($27 million) following the acquisition of 23.5 Degrees Topco Limited, a U.K. licensed business partner, during the first quarter of fiscal 2025. International comparable store sales were flat, driven by a 1% increase in comparable transactions, offset by a 1% decrease in average ticket.

Operating Margin

International operating income for the third quarter of fiscal 2025 decreased 5% to $273 million, compared to $288 million in the third quarter of fiscal 2024. Operating margin contracted 200 basis points to 13.6%, primarily due to increased promotional activity (approximately 160 basis points).

For the three quarters ended June 29, 2025 compared with the three quarters ended June 30, 2024

Revenues

International total net revenues for the first three quarters of fiscal 2025 increased $304 million, or 6%, primarily due to net new company-operated store growth of 7%, or 638 stores, over the past 12 months ($205 million), and the incremental net revenue from the conversion of 113 licensed stores to company-operated stores ($67 million) following the acquisition of 23.5 Degrees Topco Limited during the first quarter of fiscal 2025. Also contributing to the increase in revenues were higher product and equipment sales to, and royalty revenues from, our licensees ($49 million), primarily due to the opening of 446 net new licensed stores over the past 12 months. These increases were partially offset by a 1% decrease in comparable store sales ($33 million), driven by a 2% decrease in average ticket, partially offset by a 1% increase in comparable transactions.

Operating Margin

International operating income for the first three quarters of fiscal 2025 decreased 5% to $727 million, compared to $763 million in the first three quarters of fiscal 2024. Operating margin contracted 140 basis points to 12.6%, primarily due to increased promotional activity (approximately 180 basis points).

Channel Development


	Quarter Ended										Three Quarters Ended
	Jun 29, 2025		Jun 30, 2024		$ Change		Jun 29, 2025		Jun 30, 2024		Jun 29, 2025		Jun 30, 2024		$ Change		Jun 29, 2025		Jun 30, 2024
							As a % of Channel Development Total Net Revenues										As a % of Channel Development Total Net Revenues
Net revenues	$	483.8	$	438.3	$	45.5					$	1,329.0	$	1,304.5	$	24.5
Product and distribution costs	306.8		257.7		49.1		63.4	%	58.8	%	824.4		789.3		35.1		62.0	%	60.5	%
Other operating expenses	15.1		15.2		(0.1)		3.1		3.5		43.7		43.2		0.5		3.3		3.3

General and administrative expenses	1.7		1.6		0.1		0.4		0.4		4.8		5.7		(0.9)		0.4		0.4
Restructuring	0.2		—		0.2		—		—		1.1		—		1.1		0.1		—
Total operating expenses	323.8		274.5		49.3		66.9		62.6		874.0		838.2		35.8		65.8		64.3
Income from equity investees	58.4		71.4		(13.0)		12.1		16.3		164.8		194.9		(30.1)		12.4		14.9

Operating income	$	218.4	$	235.2	$	(16.8)	45.1	%	53.7	%	$	619.8	$	661.2	$	(41.4)	46.6	%	50.7	%

For the quarter ended June 29, 2025 compared with the quarter ended June 30, 2024

Revenues

Channel Development total net revenues for the third quarter of fiscal 2025 increased $46 million, or 10%, primarily due to an increase in revenue in the Global Coffee Alliance ($45 million).

Operating Margin

Channel Development operating income for the third quarter of fiscal 2025 decreased 7% to $218 million, compared to $235 million in the third quarter of fiscal 2024. Operating margin contracted 860 basis points to 45.1%, primarily driven by a decline

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in our North American Coffee Partnership joint venture income (approximately 420 basis points), mix shift (approximately 270 basis points), and higher global product costs (approximately 250 basis points).

For the three quarters ended June 29, 2025 compared with the three quarters ended June 30, 2024

Revenues

Channel Development total net revenues for the first three quarters of fiscal 2025 increased $25 million, or 2%, primarily due to an increase in revenue in the Global Coffee Alliance ($27 million).

Operating Margin

Channel Development operating income for the first three quarters of fiscal 2025 decreased 6% to $620 million, compared to $661 million in the first three quarters of fiscal 2024. Operating margin contracted 410 basis points to 46.6%, primarily driven by a decline in our North American Coffee Partnership joint venture income (approximately 250 basis points) and higher global product costs (approximately 180 basis points).

Corporate and Other


	Quarter Ended								Three Quarters Ended
	Jun 29, 2025		Jun 30, 2024		$ Change		% Change		Jun 29, 2025		Jun 30, 2024		$ Change		% Change
Net revenues:


Other	$	34.5	$	16.8	$	17.7	105.4	%	$	65.6	$	34.6	$	31.0	89.6	%
Total net revenues	34.5		16.8		17.7		105.4		65.6		34.6		31.0		89.6
Product and distribution costs	37.4		14.2		23.2		163.4		69.7		33.9		35.8		105.6

Other operating expenses	0.6		0.4		0.2		50.0		0.7		1.1		(0.4)		(36.4)
Depreciation and amortization expenses	32.7		31.1		1.6		5.1		92.9		92.4		0.5		0.5
General and administrative expenses	423.6		409.0		14.6		3.6		1,347.4		1,331.1		16.3		1.2
Restructuring	14.4		—		14.4		nm		91.5		—		91.5		nm
Total operating expenses	508.7		454.7		54.0		11.9		1,602.2		1,458.5		143.7		9.9

Operating loss	$	(474.2)	$	(437.9)	$	(36.3)	8.3	%	$	(1,536.6)	$	(1,423.9)	$	(112.7)	7.9	%

Corporate and Other primarily consists of our unallocated corporate expenses and sales of cocoa butter to third parties. Unallocated corporate expenses include corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment and are not included in the reported financial results of the operating segments.

For the quarter ended June 29, 2025 compared with the quarter ended June 30, 2024

Corporate and Other operating loss increased 8% to $474 million for the third quarter of fiscal 2025 compared to $438 million for the third quarter of fiscal 2024, largely due to costs associated with restructuring our support organization, primarily severance costs, in support of our “Back to Starbucks” strategy.

For the three quarters ended June 29, 2025 compared with the three quarters ended June 30, 2024

Corporate and Other operating loss increased 8% to $1.5 billion for the first three quarters of fiscal 2025 compared to $1.4 billion for the first three quarters of fiscal 2024, largely due to costs associated with restructuring our support organization, primarily severance costs, in support of our “Back to Starbucks” strategy.

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Quarterly Store Data

Our store data for the periods presented is as follows:


	Net stores opened/(closed) and transferred during the period
	Quarter Ended		Three Quarters Ended		Stores open as of
	Jun 29, 2025	Jun 30, 2024	Jun 29, 2025	Jun 30, 2024	Jun 29, 2025	Jun 30, 2024
North America
Company-operated stores	122	113	292	312	11,453	10,940
Licensed stores	(15)	20	18	76	7,281	7,258
Total North America	107	133	310	388	18,734	18,198
International
Company-operated stores(1)	103	244	420	562	10,277	9,526
Licensed stores(1)	98	149	168	489	12,086	11,753
Total International	201	393	588	1,051	22,363	21,279

(1)Net stores opened/(closed) and transferred during the period, for the three quarters ended June 29, 2025, includes the conversion of 113 licensed stores to company-operated stores following the acquisition of 23.5 Degrees Topco Limited during the first quarter of fiscal 2025.

Financial Condition, Liquidity, and Capital Resources

Cash and Investment Overview

Our cash and investments were $4.7 billion as of June 29, 2025 and $3.8 billion as of September 29, 2024. We actively manage our cash and investments in order to internally fund operating needs, make scheduled interest and principal payments on our borrowings, fund acquisitions, and return cash to shareholders through common stock cash dividend payments and share repurchases. Our investment portfolio primarily includes highly liquid available-for-sale securities, including corporate debt securities and U.S. government treasury securities, as well as principal-protected structured deposits. As of June 29, 2025, approximately $2.1 billion of cash and short-term investments were held in foreign subsidiaries.

Borrowing Capacity

Revolving Credit Facility

During the third quarter of fiscal 2025, we replaced our $3.0 billion unsecured five-year revolving credit facility (the “2021 credit facility”) with a new $3.0 billion unsecured five-year revolving credit facility (the “2025 credit facility”).

Our 2025 credit facility, of which $150.0 million may be used for issuances of letters of credit, is currently set to mature on June 13, 2030. The 2025 credit facility is available for working capital, capital expenditures, and other general corporate purposes, including acquisitions and share repurchases. We have the option, subject to negotiation and agreement with the related banks, to increase the maximum commitment amount by an additional $1.0 billion.

Borrowings under the 2025 credit facility will bear interest at a fluctuating rate based on the Term Secured Overnight Financing Rate (“Term SOFR”), and, for U.S. dollar-denominated loans under certain circumstances, a Base Rate (as defined in the 2025 credit facility), in each case plus an applicable rate. The applicable rate is based on the Company’s long-term credit ratings assigned by Moody’s and Standard & Poor’s rating agencies. The 2025 credit facility contains alternative interest rate provisions specifying rate calculations to be used at such time Term SOFR ceases to be available as a benchmark due to reference rate reform. The “Base Rate” of interest is the highest of (i) the Federal Funds Rate plus 0.50%, (ii) Bank of America’s prime rate, (iii) Term SOFR plus 1.00%, and (iv) 1.00%. Upon the occurrence of any event of default under the

2025 credit facility, interest on the outstanding amount of the indebtedness under the 2025 credit facility will bear interest at a rate per annum equal to 2% in excess of the interest then borne by such borrowings.

The 2025 credit facility contains provisions requiring us to maintain compliance with certain covenants, including a minimum fixed charge coverage ratio, which measures our ability to cover financing expenses. As of June 29, 2025, we were in compliance with all applicable covenants. No amounts were outstanding under our 2025 credit facility as of June 29, 2025, or our 2021 credit facility as of September 29, 2024.

Commercial Paper

Under our commercial paper program, we may issue unsecured commercial paper notes up to a maximum aggregate amount

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outstanding at any time of $3.0 billion, with individual maturities that may vary but not exceed 397 days from the date of issue. Amounts outstanding under the commercial paper program are required to be backstopped by available commitments under our 2025 credit facility. The proceeds from borrowings under our commercial paper program may be used for working capital needs, capital expenditures, and other corporate purposes, including, but not limited to, business expansion, payment of cash dividends on our common stock, and share repurchases. We had no borrowings outstanding under our commercial paper program as of June 29, 2025 and September 29, 2024. Our total available contractual borrowing capacity for general corporate purposes was $3.0 billion as of the end of our third quarter of fiscal 2025.

Credit Facilities in Japan

Additionally, we hold the following Japanese yen-denominated credit facilities that are available for working capital needs and capital expenditures within our Japanese market.

•A ¥5.0 billion, or $34.6 million, credit facility is currently set to mature on December 30, 2025. Borrowings under this credit facility are subject to terms defined within the facility and will bear interest at a variable rate based on TIBOR plus an applicable margin of 0.400%.

•A ¥10.0 billion, or $69.2 million, credit facility is currently set to mature on March 27, 2026. Borrowings under this credit facility are subject to terms defined within the facility and will bear interest at a variable rate based on TIBOR plus an applicable margin of 0.300%.

As of June 29, 2025 and September 29, 2024, we had no borrowings outstanding under these credit facilities.

See Note 8, Debt, to the consolidated financial statements included in Item 1 of Part I of this 10-Q for details of the components of our long-term debt.

Our ability to incur new liens and conduct sale and leaseback transactions on certain material properties is subject to compliance with terms of the indentures under which the long-term notes were issued. As of June 29, 2025, we were in compliance with all applicable covenants.

Use of Cash

We expect to use our available cash and investments, including, but not limited to, additional potential future borrowings under the credit facilities, commercial paper program, and the issuance of debt to support and invest in our core businesses, including investing in new ways to serve our customers and supporting our store partners, repaying maturing debts, returning cash to shareholders through common stock cash dividend payments and discretionary share repurchases, and investing in new business opportunities related to our core and developing businesses. Furthermore, we may use our available cash resources to make proportionate capital contributions to our investees. We may also seek strategic acquisitions to leverage existing capabilities and further build our business. Acquisitions may include increasing our ownership interests in our investees. Any decisions to increase such ownership interests will be driven by valuation and fit with our ownership strategy.

We believe that net future cash flows generated from operations and existing cash and investments both domestically and internationally, combined with our ability to leverage our balance sheet through the issuance of debt, will be sufficient to finance capital requirements for our core businesses as well as shareholder distributions for at least the next 12 months. We are currently not aware of any trends or demands, commitments, events, or uncertainties that will result in, or that are reasonably likely to result in, our liquidity increasing or decreasing in any material way that will impact our capital needs during or beyond the next 12 months. We have borrowed funds and continue to believe we have the ability to do so at reasonable interest rates; however, additional borrowings would result in increased interest expense in the future. In this regard, we may incur additional debt, within targeted levels, as part of our plans to fund our capital programs, including cash returns to shareholders through future dividends and discretionary share repurchases, refinancing debt maturities, as well as investing in new business opportunities. If necessary, we may pursue additional sources of financing, including both short-term and long-term borrowings and debt issuances.

We regularly review our cash positions and our determination of partial indefinite reinvestment of foreign earnings. In the event we determine that all or another portion of such foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes, which could be material. Any foreign earnings that are not indefinitely reinvested may be repatriated at management’s discretion. During the third quarter of fiscal 2025, we revised our indefinite reinvestment assertions from prior years' cumulative earnings from certain foreign subsidiaries; as a result, and in anticipation of repatriating earnings from those subsidiaries, we accrued approximately $70 million of discrete tax expense related to foreign withholding taxes during the third quarter of fiscal year 2025. We continue to be indefinitely reinvested in the remainder of our foreign earnings, for which no tax accrual has been recorded.

On July 4, 2025, the President of the United States signed and enacted tax legislation into law through a reconciliation bill titled “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14,” commonly referred to as the “One Big Beautiful Bill Act.” This legislation was enacted during the fourth quarter of fiscal 2025; therefore, the fiscal 2025 accounting impacts

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from this tax law change will be included in our fourth quarter of fiscal 2025 results. We are evaluating the impacts of this tax law change; however, it is not expected to result in a material impact to our consolidated financial statements.

During the third quarter of fiscal 2025, our Board of Directors approved a quarterly cash dividend to shareholders of $0.61 per share to be paid on August 29, 2025 to shareholders of record as of the close of business on August 15, 2025.

During the three quarters ended June 29, 2025, we made no common stock share repurchases. As of June 29, 2025, 29.8 million shares remained available for repurchase under current authorizations.

Other than normal operating expenses, cash requirements for the remainder of fiscal 2025 are expected to consist primarily of capital expenditures for investments in our new and existing stores, our supply chain, and corporate facilities. Total capital expenditures for fiscal 2025 are expected to be moderately lower than fiscal 2024.

In the MD&A included in the 10-K, we disclosed that we had $35.6 billion of current and long-term material cash requirements as of September 29, 2024. There have been no material changes to our material cash requirements during the period covered by this 10-Q outside of the normal course of our business.

Cash Flows

Net cash provided by operating activities was $3.4 billion for the first three quarters of fiscal 2025, compared to $4.6 billion for the same period in fiscal 2024. The change was primarily due to a decrease in net earnings of $1.1 billion and a net increase of $424 million in inventories, which was primarily driven by green and roasted coffee, largely due to elevated coffee prices, partially offset by a net increase of $229 million in accounts payable, primarily due to payment timing.

Net cash used in investing activities totaled $2.1 billion for the first three quarters of fiscal 2025, compared to $1.8 billion for the same period in fiscal 2024. The change was primarily due to a net decrease of $207 million in cash provided by investment activity, primarily structured deposit investments, and the acquisition of 23.5 Degrees Topco Limited.

Net cash used in financing activities for the first three quarters of fiscal 2025 totaled $365 million, compared to $3.1 billion for the same period in fiscal 2024. The change was primarily due to no current year repayments of long-term debt and no current year share repurchases of our common stock compared to the prior year.

Commodity Prices, Availability and General Risk Conditions

Commodity price risk represents our primary market risk, generated by our purchases of green coffee and dairy products, among other items. We purchase, roast, and sell high-quality arabica coffee and related products, and risk arises from the price volatility of green coffee. In addition to coffee, we also purchase significant amounts of dairy products to support the needs of our company-operated stores. The price and availability of these commodities, including recent volatility in green coffee prices, directly impact our results of operations, and we expect commodity prices, particularly coffee, to continue to impact future results of operations. For additional details, see Product Supply in Part 1, Item 1 of the 10-K, as well as Risk Factors in Part I, Item 1A of the 10-K.

Seasonality and Quarterly Results

Our business is subject to moderate seasonal fluctuations, of which our fiscal second quarter typically experiences lower revenues and operating income. Additionally, as our stored value cards (“Starbucks Cards”) are issued to, and loaded by, customers during the holiday season, we tend to have higher cash flows from operations during the first quarter of the fiscal year. However, since revenues from Starbucks Cards are recognized upon redemption and not when cash is loaded onto the Starbucks Cards, the impact of seasonal fluctuations on the consolidated statements of earnings is much less pronounced. As a result of moderate seasonal fluctuations, results for any quarter are not necessarily indicative of the results that may be achieved for the full fiscal year.

Critical Accounting Estimates

The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles and the Company’s discussion and analysis of its financial condition and operating results require the Company’s management to make judgments, assumptions, and estimates that affect the amounts reported. Note 1, Summary of Significant Accounting Policies and Estimates, to the consolidated financial statements included in Item 1 of Part I of this 10-Q and in the Notes to Consolidated Financial Statements in Part II, Item 8 of the 10-K describe the significant accounting policies and methods used in the preparation of the Company’s consolidated financial statements. There have been no material changes to the Company’s critical accounting estimates since the 10-K.

RECENT ACCOUNTING PRONOUNCEMENTS

See Note 1, Summary of Significant Accounting Policies and Estimates, to the consolidated financial statements included in Item 1 of Part I of this 10-Q, for a detailed description of recent accounting pronouncements.

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Item 3.Quantitative and Qualitative Disclosures About Market Risk

There has been no material change in the commodity price risk, foreign currency exchange risk, equity security price risk, or interest rate risk discussed in Item 7A of the 10-K.

Item 4. Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that material information required to be disclosed in our periodic reports filed or submitted under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Our disclosure controls and procedures are also designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer as appropriate, to allow timely decisions regarding required disclosure.

During the third quarter of fiscal 2025, we carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and our chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based upon that evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective, as of the end of the period covered by this report (June 29, 2025).

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during our most recently completed fiscal quarter that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II — OTHER INFORMATION

Item 1.Legal Proceedings

See Note 14, Commitments and Contingencies, to the consolidated financial statements included in Item 1 of Part I of this 10-Q for information regarding certain legal proceedings in which we are involved.

Item 1A.Risk Factors

In addition to the other information set forth in this 10-Q, you should carefully consider the risks and uncertainties discussed in Part I, Item 1A. Risk Factors in our 10-K. There have been no material changes to the risk factors disclosed in our 10-K.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

Shares under our ongoing share repurchase program may be repurchased in open market transactions, including pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Exchange Act, or through privately negotiated transactions. The timing, manner, price, and amount of repurchases will be determined at our discretion and the share repurchase program may be suspended, terminated, or modified at any time for any reason. During the third fiscal quarter ended June 29, 2025, there was no share repurchase activity.

Item 3.Defaults upon Senior Securities

None.

Item 4.Mine Safety Disclosures

Not applicable.

Item 5.Other Information

Insider Adoption or Termination of Trading Arrangements:

During the fiscal quarter ended June 29, 2025, none of our directors or officers informed us of the or of a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Regulation S-K, Item 408.

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Item 6.Exhibits


		Incorporated by Reference
Exhibit No.	Exhibit Description	Form	File No.	Date of Filing	Exhibit Number	Filed Herewith
3.1	Restated Articles of Incorporation of Starbucks Corporation	10-Q	000-20322	4/28/2015	3.1
3.2	Amended and Restated Bylaws of Starbucks Corporation (As amended and restated through June 25, 2025)	8-K	000-20322	6/30/2025	3.1
4.1	Eleventh Supplemental Indenture, dated as of May 8, 2025, by and between Starbucks Corporation and U.S. Bank Trust Company, National Association, as trustee and as successor in interest to U.S. Bank National Association	8-K	000-20322	5/8/2025	4.2
4.2	Form of 4.500% Senior Notes due 2028 (included as Exhibit A to Exhibit 4.1 )	8-K	000-20322	5/8/2025	4.3
4.3	Form of 4.800% Senior Notes due 2030 (included as Exhibit B to Exhibit 4.1 )	8-K	000-20322	5/8/2025	4.4
4.4	Form of 5.400% Senior Notes due 2035 (included as Exhibit C to Exhibit 4.1 )	8-K	000-20322	5/8/2025	4.5
10.1	Credit Agreement, dated June 13, 2025, among Starbucks Corporation, Bank of America, N.A., in its capacity as Administrative Agent, Swing Line Lender and L/C Issuer, Wells Fargo Bank, N.A., Citibank, N.A., Morgan Stanley Bank, N.A. and U.S. Bank National Association, as L/C Issuers, and the other Lenders from time to time a party thereto.	8-K	000-20322	6/16/2025	10.1
31.1	Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	—	—	—	—	X
31.2	Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	—	—	—	—	X
32*	Certifications of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	—	—	—	—	—
101	The following financial statements from the Company’s 10-Q for the fiscal quarter ended June 29, 2025, formatted in iXBRL: (i) Consolidated Statements of Earnings, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Equity, and (vi) Notes to Consolidated Financial Statements	—	—	—	—	X
104	Cover Page Interactive Data File (formatted in iXBRL and contained in Exhibit 101)	—	—	—	—	X

* Furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

July 29, 2025


			STARBUCKS CORPORATION

			By:						/s/ Cathy R. Smith
									Cathy R. Smith
									executive vice president, chief financial officer
									Signing on behalf of the registrant and as principal financial officer

STARBUCKS CORP - Quarter Report: 2025 June (Form 10-Q)

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