filings.toolsItem 1. Financial Statements
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Item 1. Financial Statements
STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(in millions, except per share data, unaudited)
| Quarter Ended | Three Quarters Ended | ||||||||||||||||||||||
| Jun 29, 2025 | Jun 30, 2024 | Jun 29, 2025 | Jun 30, 2024 | ||||||||||||||||||||
| Net revenues: | |||||||||||||||||||||||
| Company-operated stores | $ | 7,812.5 | $ | 7,516.0 | $ | 22,882.9 | $ | 22,323.8 | |||||||||||||||
| Licensed stores | 1,105.6 | 1,129.0 | 3,257.3 | 3,375.7 | |||||||||||||||||||
| Other | 537.9 | 468.9 | 1,475.2 | 1,402.8 | |||||||||||||||||||
| Total net revenues | 9,456.0 | 9,113.9 | 27,615.4 | 27,102.3 | |||||||||||||||||||
| Product and distribution costs | 2,955.5 | 2,740.9 | 8,586.8 | 8,370.2 | |||||||||||||||||||
| Store operating expenses | 4,344.8 | 3,829.1 | 12,723.9 | 11,404.7 | |||||||||||||||||||
| Other operating expenses | 151.6 | 143.9 | 442.8 | 427.1 | |||||||||||||||||||
| Depreciation and amortization expenses | 427.6 | 380.4 | 1,254.0 | 1,117.6 | |||||||||||||||||||
| General and administrative expenses | 677.2 | 576.0 | 1,975.2 | 1,878.6 | |||||||||||||||||||
| Restructuring | 20.8 | — | 137.0 | — | |||||||||||||||||||
| Total operating expenses | 8,577.5 | 7,670.3 | 25,119.7 | 23,198.2 | |||||||||||||||||||
| Income from equity investees | 57.1 | 73.9 | 162.7 | 197.8 | |||||||||||||||||||
| Operating income | 935.6 | 1,517.5 | 2,658.4 | 4,101.9 | |||||||||||||||||||
| Interest income and other, net | 25.6 | 28.1 | 81.8 | 96.0 | |||||||||||||||||||
| Interest expense | (142.3) | (141.3) | (396.8) | (422.0) | |||||||||||||||||||
| Earnings before income taxes | 818.9 | 1,404.3 | 2,343.4 | 3,775.9 | |||||||||||||||||||
| Income tax expense | 260.4 | 348.6 | 619.9 | 923.2 | |||||||||||||||||||
| Net earnings including noncontrolling interests | 558.5 | 1,055.7 | 1,723.5 | 2,852.7 | |||||||||||||||||||
| Net earnings/(loss) attributable to noncontrolling interests | 0.2 | 0.9 | 0.3 | 1.0 | |||||||||||||||||||
| Net earnings attributable to Starbucks | $ | 558.3 | $ | 1,054.8 | $ | 1,723.2 | $ | 2,851.7 | |||||||||||||||
| Earnings per share - basic | $ | 0.49 | $ | 0.93 | $ | 1.52 | $ | 2.51 | |||||||||||||||
| Earnings per share - diluted | $ | 0.49 | $ | 0.93 | $ | 1.51 | $ | 2.51 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 1,136.4 | 1,132.8 | 1,135.7 | 1,133.9 | |||||||||||||||||||
| Diluted | 1,139.8 | 1,135.8 | 1,139.4 | 1,137.3 |
See Notes to Consolidated Financial Statements.
STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions, unaudited)
| Quarter Ended | Three Quarters Ended | ||||||||||||||||||||||
| Jun 29, 2025 | Jun 30, 2024 | Jun 29, 2025 | Jun 30, 2024 | ||||||||||||||||||||
| Net earnings including noncontrolling interests | $ | 558.5 | $ | 1,055.7 | $ | 1,723.5 | $ | 2,852.7 | |||||||||||||||
| Other comprehensive income/(loss), net of tax: | |||||||||||||||||||||||
| Unrealized holding gains/(losses) on available-for-sale debt securities | 1.9 | 1.1 | 2.0 | 6.3 | |||||||||||||||||||
| Tax (expense)/benefit | (0.5) | (0.3) | (0.5) | (1.6) | |||||||||||||||||||
| Unrealized gains/(losses) on cash flow hedging instruments | (83.8) | 38.4 | (20.8) | 110.2 | |||||||||||||||||||
| Tax (expense)/benefit | 15.8 | (8.9) | (0.6) | (20.0) | |||||||||||||||||||
| Unrealized gains/(losses) on net investment hedging instruments | (77.4) | 114.0 | 143.2 | 181.3 | |||||||||||||||||||
| Tax (expense)/benefit | 19.4 | (28.8) | (36.3) | (45.8) | |||||||||||||||||||
| Translation adjustment and other | 157.7 | (91.8) | (63.2) | (59.9) | |||||||||||||||||||
| Tax (expense)/benefit | — | (0.2) | — | (3.8) | |||||||||||||||||||
| Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale securities, hedging instruments, translation adjustment, and other | (50.3) | (14.2) | (171.7) | (2.9) | |||||||||||||||||||
| Tax expense/(benefit) | 11.0 | 4.2 | 41.5 | 6.4 | |||||||||||||||||||
| Other comprehensive income/(loss) | (6.2) | 13.5 | (106.4) | 170.2 | |||||||||||||||||||
| Comprehensive income including noncontrolling interests | 552.3 | 1,069.2 | 1,617.1 | 3,022.9 | |||||||||||||||||||
| Comprehensive income/(loss) attributable to noncontrolling interests | 0.3 | 0.9 | 0.1 | 1.0 | |||||||||||||||||||
| Comprehensive income attributable to Starbucks | $ | 552.0 | $ | 1,068.3 | $ | 1,617.0 | $ | 3,021.9 |
See Notes to Consolidated Financial Statements.
STARBUCKS CORPORATION
CONSOLIDATED BALANCE SHEETS
(in millions, except per share data, unaudited)
| Jun 29, 2025 | Sep 29, 2024 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 4,172.6 | $ | 3,286.2 | |||||||
| Short-term investments | 333.3 | 257.0 | |||||||||
| Accounts receivable, net | 1,242.6 | 1,213.8 | |||||||||
| Inventories | 2,259.2 | 1,777.3 | |||||||||
| Prepaid expenses and other current assets | 413.8 | 313.1 | |||||||||
| Total current assets | 8,421.5 | 6,847.4 | |||||||||
| Long-term investments | 232.0 | 276.0 | |||||||||
| Equity investments | 485.9 | 463.9 | |||||||||
| Property, plant and equipment, net | 8,893.7 | 8,665.5 | |||||||||
| Operating lease, right-of-use asset | 9,581.4 | 9,286.2 | |||||||||
| Deferred income taxes, net | 1,805.9 | 1,766.7 | |||||||||
| Other long-term assets | 674.3 | 617.0 | |||||||||
| Other intangible assets | 169.7 | 100.9 | |||||||||
| Goodwill | 3,384.8 | 3,315.7 | |||||||||
| TOTAL ASSETS | $ | 33,649.2 | $ | 31,339.3 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY/(DEFICIT) | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 1,888.2 | $ | 1,595.5 | |||||||
| Accrued liabilities | 2,245.8 | 2,194.7 | |||||||||
| Accrued payroll and benefits | 852.5 | 786.6 | |||||||||
| Current portion of operating lease liability | 1,496.4 | 1,463.1 | |||||||||
| Stored value card liability and current portion of deferred revenue | 1,911.2 | 1,781.2 | |||||||||
| Current portion of long-term debt | 2,748.2 | 1,248.9 | |||||||||
| Total current liabilities | 11,142.3 | 9,070.0 | |||||||||
| Long-term debt | 14,570.9 | 14,319.5 | |||||||||
| Operating lease liability | 9,070.6 | 8,771.6 | |||||||||
| Deferred revenue | 5,826.1 | 5,963.6 | |||||||||
| Other long-term liabilities | 717.9 | 656.2 | |||||||||
| Total liabilities | 41,327.8 | 38,780.9 | |||||||||
| Shareholders’ deficit: | |||||||||||
| Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,136.5 and 1,133.5 shares, respectively | 1.1 | 1.1 | |||||||||
| Additional paid-in capital | 548.7 | 322.6 | |||||||||
| Retained deficit | (7,700.6) | (7,343.8) | |||||||||
| Accumulated other comprehensive income/(loss) | (535.2) | (428.8) | |||||||||
| Total shareholders’ deficit | (7,686.0) | (7,448.9) | |||||||||
| Noncontrolling interests | 7.4 | 7.3 | |||||||||
| Total deficit | (7,678.6) | (7,441.6) | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY/(DEFICIT) | $ | 33,649.2 | $ | 31,339.3 |
See Notes to Consolidated Financial Statements.
STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions, unaudited)
| Three Quarters Ended | ||||||||||||||
| Jun 29, 2025 | Jun 30, 2024 | |||||||||||||
| OPERATING ACTIVITIES: | ||||||||||||||
| Net earnings including noncontrolling interests | $ | 1,723.5 | $ | 2,852.7 | ||||||||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 1,315.5 | 1,191.0 | ||||||||||||
| Deferred income taxes, net | 48.1 | 16.6 | ||||||||||||
| Income earned from equity method investees, net | (184.4) | (201.5) | ||||||||||||
| Distributions received from equity method investees | 186.5 | 220.5 | ||||||||||||
| Stock-based compensation | 244.3 | 236.6 | ||||||||||||
| Non-cash lease costs | 1,104.9 | 1,082.6 | ||||||||||||
| Loss on retirement and impairment of assets | 143.0 | 62.9 | ||||||||||||
| Other | 11.4 | 20.2 | ||||||||||||
| Cash provided by/(used in) changes in operating assets and liabilities: | ||||||||||||||
| Accounts receivable | (46.4) | 44.7 | ||||||||||||
| Inventories | (477.6) | (53.4) | ||||||||||||
| Income taxes payable | 50.7 | (50.7) | ||||||||||||
| Accounts payable | 291.1 | 61.7 | ||||||||||||
| Deferred revenue | (5.0) | 51.6 | ||||||||||||
| Operating lease liability | (1,144.0) | (1,049.7) | ||||||||||||
| Other operating assets and liabilities | 104.1 | 74.2 | ||||||||||||
| Net cash provided by operating activities | 3,365.7 | 4,560.0 | ||||||||||||
| INVESTING ACTIVITIES: | ||||||||||||||
| Purchases of investments | (298.2) | (545.6) | ||||||||||||
| Sales of investments | 1.1 | 0.5 | ||||||||||||
| Maturities and calls of investments | 276.9 | 731.8 | ||||||||||||
| Additions to property, plant and equipment | (1,849.5) | (1,979.3) | ||||||||||||
| Acquisitions, net of cash acquired | (177.1) | — | ||||||||||||
| Other | (48.1) | (56.9) | ||||||||||||
| Net cash used in investing activities | (2,094.9) | (1,849.5) | ||||||||||||
| FINANCING ACTIVITIES: | ||||||||||||||
| Net proceeds from issuance of short-term debt | 2.4 | 118.3 | ||||||||||||
| Repayments of short-term debt | (7.8) | (127.0) | ||||||||||||
| Net proceeds from issuance of long-term debt | 1,748.5 | 1,995.3 | ||||||||||||
| Repayments of long-term debt | — | (1,825.1) | ||||||||||||
| Proceeds from issuance of common stock | 59.6 | 79.2 | ||||||||||||
| Cash dividends paid | (2,078.1) | (1,939.0) | ||||||||||||
| Repurchase of common stock | — | (1,266.7) | ||||||||||||
| Minimum tax withholdings on share-based awards | (80.6) | (98.1) | ||||||||||||
| Other | (9.2) | (10.6) | ||||||||||||
| Net cash used in financing activities | (365.2) | (3,073.7) | ||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (19.2) | (9.2) | ||||||||||||
| Net increase/(decrease) in cash and cash equivalents | 886.4 | (372.4) | ||||||||||||
| CASH AND CASH EQUIVALENTS: | ||||||||||||||
| Beginning of period | 3,286.2 | 3,551.5 | ||||||||||||
| End of period | $ | 4,172.6 | $ | 3,179.1 | ||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||
| Cash paid during the period for: | ||||||||||||||
| Interest, net of capitalized interest | $ | 392.5 | $ | 373.9 | ||||||||||
| Income taxes | $ | 568.1 | $ | 1,079.9 | ||||||||||
See Notes to Consolidated Financial Statements.
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 | |||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||
| Balance, March 30, 2025 | 1,136.2 | $ | 1.1 | $ | 470.9 | $ | (7,565.5) | $ | (529.0) | $ | (7,622.5) | $ | 7.1 | $ | (7,615.4) | ||||||||||||||||||||||||||||||||
| Net earnings | — | — | — | 558.3 | — | 558.3 | 0.2 | 558.5 | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive income/(loss) | — | — | — | — | (6.3) | (6.3) | 0.1 | (6.2) | |||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | 66.7 | — | — | 66.7 | — | 66.7 | |||||||||||||||||||||||||||||||||||||||
| Exercise of stock options/vesting of RSUs | 0.2 | — | (2.1) | — | — | (2.1) | — | (2.1) | |||||||||||||||||||||||||||||||||||||||
| Sale of common stock | 0.1 | — | 13.2 | — | — | 13.2 | — | 13.2 | |||||||||||||||||||||||||||||||||||||||
| Cash dividends declared, $0.61 per share | — | — | — | (693.4) | — | (693.4) | — | (693.4) | |||||||||||||||||||||||||||||||||||||||
| Other | — | — | — | — | 0.1 | 0.1 | — | 0.1 | |||||||||||||||||||||||||||||||||||||||
| Balance, June 29, 2025 | 1,136.5 | $ | 1.1 | $ | 548.7 | $ | (7,700.6) | $ | (535.2) | $ | (7,686.0) | $ | 7.4 | $ | (7,678.6) | ||||||||||||||||||||||||||||||||
| Balance, March 31, 2024 | 1,132.7 | $ | 1.1 | $ | 141.7 | $ | (7,970.7) | $ | (621.5) | $ | (8,449.4) | $ | 7.2 | $ | (8,442.2) | ||||||||||||||||||||||||||||||||
| Net earnings | — | — | — | 1,054.8 | — | 1,054.8 | 0.9 | 1,055.7 | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | 13.5 | 13.5 | — | 13.5 | |||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | 64.2 | — | — | 64.2 | — | 64.2 | |||||||||||||||||||||||||||||||||||||||
| Exercise of stock options/vesting of RSUs | 0.2 | — | 3.9 | — | — | 3.9 | — | 3.9 | |||||||||||||||||||||||||||||||||||||||
| Sale of common stock | 0.2 | — | 12.9 | — | — | 12.9 | — | 12.9 | |||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock (1) | — | — | 0.3 | — | — | 0.3 | — | 0.3 | |||||||||||||||||||||||||||||||||||||||
| Cash dividends declared, $0.57 per share | — | — | — | (645.6) | — | (645.6) | — | (645.6) | |||||||||||||||||||||||||||||||||||||||
| Other | — | — | — | — | — | — | (0.1) | (0.1) | |||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2024 | 1,133.1 | $ | 1.1 | $ | 223.0 | $ | (7,561.5) | $ | (608.0) | $ | (7,945.4) | $ | 8.0 | $ | (7,937.4) |
(1)Includes excise tax on share repurchases.
See Notes to Consolidated Financial Statements.
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 | |||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||
| Balance, September 29, 2024 | 1,133.5 | $ | 1.1 | $ | 322.6 | $ | (7,343.8) | $ | (428.8) | $ | (7,448.9) | $ | 7.3 | $ | (7,441.6) | ||||||||||||||||||||||||||||||||
| Net earnings | — | — | — | 1,723.2 | — | 1,723.2 | 0.3 | 1,723.5 | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | (106.2) | (106.2) | (0.2) | (106.4) | |||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | 247.1 | — | — | 247.1 | — | 247.1 | |||||||||||||||||||||||||||||||||||||||
| Exercise of stock options/vesting of RSUs | 2.6 | — | (61.1) | — | — | (61.1) | — | (61.1) | |||||||||||||||||||||||||||||||||||||||
| Sale of common stock | 0.4 | — | 40.1 | — | — | 40.1 | — | 40.1 | |||||||||||||||||||||||||||||||||||||||
| Cash dividends declared, $1.83 per share | — | — | — | (2,080.1) | — | (2,080.1) | — | (2,080.1) | |||||||||||||||||||||||||||||||||||||||
| Other | — | — | — | 0.1 | (0.2) | (0.1) | — | (0.1) | |||||||||||||||||||||||||||||||||||||||
| Balance, June 29, 2025 | 1,136.5 | $ | 1.1 | $ | 548.7 | $ | (7,700.6) | $ | (535.2) | $ | (7,686.0) | $ | 7.4 | $ | (7,678.6) | ||||||||||||||||||||||||||||||||
| Balance, October 1, 2023 | 1,142.6 | $ | 1.1 | $ | 38.1 | $ | (7,255.8) | $ | (778.2) | $ | (7,994.8) | $ | 7.0 | $ | (7,987.8) | ||||||||||||||||||||||||||||||||
| Net earnings | — | — | — | 2,851.7 | — | 2,851.7 | 1.0 | 2,852.7 | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | 170.2 | 170.2 | — | 170.2 | |||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | 239.4 | — | — | 239.4 | — | 239.4 | |||||||||||||||||||||||||||||||||||||||
| Exercise of stock options/vesting of RSUs | 2.8 | — | (61.0) | — | — | (61.0) | — | (61.0) | |||||||||||||||||||||||||||||||||||||||
| Sale of common stock | 0.5 | — | 42.1 | — | — | 42.1 | — | 42.1 | |||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock (1) | (12.8) | — | (35.6) | (1,223.9) | — | (1,259.5) | — | (1,259.5) | |||||||||||||||||||||||||||||||||||||||
| Cash dividends declared, $1.71 per share | — | — | — | (1,933.5) | — | (1,933.5) | — | (1,933.5) | |||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2024 | 1,133.1 | $ | 1.1 | $ | 223.0 | $ | (7,561.5) | $ | (608.0) | $ | (7,945.4) | $ | 8.0 | $ | (7,937.4) |
(1)Includes excise tax on share repurchases.
See Notes to Consolidated Financial Statements.
STARBUCKS CORPORATION
INDEX FOR NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
STARBUCKS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 1: Summary of Significant Accounting Policies and Estimates
Financial Statement Preparation
The unaudited consolidated financial statements as of June 29, 2025, and for the quarters and three quarters ended June 29, 2025 and June 30, 2024, have been prepared by Starbucks Corporation under the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the financial information for the quarters and three quarters ended June 29, 2025 and June 30, 2024 reflects all adjustments and accruals, which are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods. In this Quarterly Report on Form 10-Q (“10-Q”), Starbucks Corporation (together with its subsidiaries) is referred to as “Starbucks,” the “Company,” “we,” “us,” or “our.”
Segment information is prepared on the same basis that our chief executive officer, who is our Chief Operating Decision Maker, manages the segments, evaluates financial results, and makes key operating decisions.
The financial information as of September 29, 2024 is derived from our audited consolidated financial statements and notes for the fiscal year ended September 29, 2024 (“fiscal 2024”) included in Item 8 in the fiscal 2024 Annual Report on Form 10-K filed with the SEC on November 20, 2024 (“10-K”). The information included in this 10-Q should be read in conjunction with the footnotes and management’s discussion and analysis of the consolidated financial statements in the 10-K.
The results of operations for the quarter and three quarters ended June 29, 2025 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending September 28, 2025 (“fiscal 2025”).
Recent Accounting Pronouncements Not Yet Adopted
In November 2023, the Financial Accounting Standards Board (“FASB”) issued guidance expanding segment disclosure requirements. The amendments require enhanced disclosure for certain segment items and disclosure on how management uses reported measures to assess segment performance. The amendments do not change how segments are determined, aggregated, or how thresholds are applied to determine reportable segments. We will adopt the guidance for the fiscal year ending September 28, 2025. We are currently evaluating the impact of the amendments and expect to include updated segment expense disclosures in our fiscal year 2025 Form 10-K.
In December 2023, the FASB issued guidance expanding disclosure requirements related to income taxes. The amendments require enhanced jurisdictional disclosures for the income tax rate reconciliation and related to cash income taxes paid. Additionally, certain disclosures related to unrecognized tax benefits and indefinite reinvestment assertions were removed. The amendments are effective for our fiscal year ending September 27, 2026. While we are still evaluating the specific impacts and timing of adoption, we anticipate this guidance will have a significant impact on our annual income tax disclosures.
In November 2024, the FASB issued guidance expanding disclosure requirements related to certain income statement expenses. The amendments require tabular disclosure of certain operating expenses disaggregated into categories, such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The amendments are effective for our fiscal year ending October 1, 2028, and may be applied retrospectively. While we are still evaluating the specific impacts and adoption method, we anticipate this guidance will have a significant impact on our consolidated financial statement disclosures.
Note 2: Acquisitions, Divestitures, and Strategic Alliance
On October 14, 2024, we acquired a 100% ownership interest in 23.5 Degrees Topco Limited, a U.K. licensed business partner, to expand our portfolio of company-operated stores and enhance the coffeehouse experience for customers. The acquisition converted 113 licensed stores to company-operated stores within our International operating segment.
The assets acquired and liabilities assumed are included in our International operating segment. Assets acquired primarily include operating lease right-of-use assets, intangible assets, goodwill, and property, plant and equipment. The intangible assets acquired as part of this transaction include reacquired licensee agreement rights, which will be amortized over the estimated useful life. In addition, we assumed various liabilities, primarily consisting of operating lease liabilities. The transaction is not material to our consolidated financial statements.
Note 3: Derivative Financial Instruments
Interest Rates
From time to time, we enter into designated cash flow hedges to manage the variability in cash flows due to changes in benchmark interest rates. We enter into interest rate swap agreements, including forward-starting interest rate swaps and treasury locks, settled in cash based upon the difference between an agreed-upon benchmark rate and the prevailing benchmark rate at settlement. These agreements are generally settled around the time of the pricing of the related debt. Each derivative agreement’s gain or loss is recorded in accumulated other comprehensive income (“AOCI”) and is subsequently reclassified to interest expense over the life of the related debt.
To hedge the exposure to changes in the fair value of our fixed-rate debt, we enter into interest rate swap agreements, which are designated as fair value hedges. The changes in fair values of these derivative instruments and the offsetting changes in fair values of the underlying hedged debt due to changes in the relevant benchmark interest rates are recorded in interest expense. Refer to Note 8, Debt, for additional information on our long-term debt.
Foreign Currency
To reduce cash flow volatility from foreign currency fluctuations, we enter into forward and swap contracts to hedge portions of cash flows of anticipated royalty revenue, inventory purchases, and intercompany borrowing and lending activities. The resulting gains and losses from these derivatives are recorded in AOCI and subsequently reclassified to revenue, product and distribution costs, or interest income and other, net, respectively, when the hedged exposures affect net earnings.
From time to time, we may enter into financial instruments, including, but not limited to, forward and swap contracts or foreign currency-denominated debt, to hedge the currency exposure of our net investments in certain international operations. The resulting gains and losses from these derivatives are recorded in AOCI and are subsequently reclassified to net earnings when the hedged net investment is either sold or substantially liquidated. Gains and losses from these derivatives, representing hedged components excluded from the assessment of effectiveness, are amortized over the life of the hedging instrument using a systematic and rational method and recognized in interest expense.
Foreign currency forward and swap contracts not designated as hedging instruments are used to mitigate the foreign exchange risk of certain other balance sheet items. Gains and losses from these derivatives are largely offset by the financial impact of translating foreign currency-denominated payables and receivables, and these gains and losses are recorded in interest income and other, net.
Commodities
Depending on market conditions, we may enter into coffee forward contracts, futures contracts, and collars to hedge anticipated cash flows under our price-to-be-fixed green coffee contracts, which are described further in Note 5, Inventories, or our longer-dated forecasted coffee demand where underlying fixed price and price-to-be-fixed contracts are not yet available. The resulting gains and losses are recorded in AOCI and are subsequently reclassified to product and distribution costs when the hedged exposure affects net earnings.
Depending on market conditions, we may also enter into dairy forward contracts and futures contracts to hedge a portion of anticipated cash flows under our dairy purchase contracts and our forecasted dairy demand. The resulting gains or losses are recorded in AOCI and are subsequently reclassified to product and distribution costs when the hedged exposure affects net earnings.
Cash flow hedges related to anticipated transactions are designated and documented at the inception of each hedge. Cash flows from hedging transactions are classified in the same categories as the cash flows from the respective hedged items. For de-designated cash flow hedges in which the underlying transactions are no longer probable of occurring or where price variability in the underlying cash flow ceases to exist, the related accumulated derivative gains or losses are recognized in interest income and other, net on our consolidated statements of earnings. These derivatives may be accounted for prospectively as non-designated derivatives until maturity, re-designated to new hedging relationships, or terminated early. We continue to believe transactions related to our designated cash flow hedges are probable to occur.
To mitigate the price uncertainty of a portion of our future purchases, including diesel fuel and other commodities, we enter into swap contracts, futures, and collars that are not designated as hedging instruments. The resulting gains and losses are recorded in interest income and other, net to help offset price fluctuations on our beverage, food, packaging, and transportation costs, which are included in product and distribution costs on our consolidated statements of earnings.
Gains and losses on derivative contracts and foreign currency-denominated debt designated as hedging instruments included in AOCI and expected to be reclassified into earnings within 12 months, net of tax (in millions):
| Net Gains/(Losses) Included in AOCI | Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | Outstanding Contract/Debt Remaining Maturity (Months) | |||||||||||||||||||||
| Jun 29, 2025 | Sep 29, 2024 | ||||||||||||||||||||||
| Cash Flow Hedges: | |||||||||||||||||||||||
| Coffee | $ | (21.3) | $ | 60.1 | $ | (16.3) | 9 | ||||||||||||||||
| Cross-currency swaps | — | 0.5 | — | 0 | |||||||||||||||||||
| Dairy | — | 2.0 | — | 0 | |||||||||||||||||||
| Foreign currency - other | 3.5 | 11.5 | 5.8 | 34 | |||||||||||||||||||
| Interest rates | (2.2) | (3.6) | (3.5) | 0 | |||||||||||||||||||
| Net Investment Hedges: | |||||||||||||||||||||||
| Cross-currency swaps | 141.7 | 96.5 | — | 105 | |||||||||||||||||||
| Foreign currency | 16.0 | 16.0 | — | 0 | |||||||||||||||||||
| Foreign currency debt | 135.2 | 135.2 | — | 0 |
Pre-tax gains and losses on derivative contracts and foreign currency-denominated long-term debt designated as hedging instruments recognized in other comprehensive income (“OCI”) and reclassifications from AOCI to earnings (in millions):
| Quarter Ended | ||||||||||||||||||||||||||||||||||||||
| Gains/(Losses) Recognized in OCI Before Reclassifications | Gains/(Losses) Reclassified from AOCI to Earnings | Location of gain/(loss) | ||||||||||||||||||||||||||||||||||||
| Jun 29, 2025 | Jun 30, 2024 | Jun 29, 2025 | Jun 30, 2024 | |||||||||||||||||||||||||||||||||||
| Cash Flow Hedges: | ||||||||||||||||||||||||||||||||||||||
| Coffee | $ | (49.6) | $ | 10.6 | $ | 17.0 | $ | (10.7) | Product and distribution costs | |||||||||||||||||||||||||||||
| Cross-currency swaps | — | 2.3 | — | 0.3 | Interest expense | |||||||||||||||||||||||||||||||||
| — | 1.8 | Interest income and other, net | ||||||||||||||||||||||||||||||||||||
| Dairy | — | 1.6 | — | (0.6) | Product and distribution costs | |||||||||||||||||||||||||||||||||
| Foreign currency - other | (32.9) | 23.9 | 4.0 | 8.3 | Licensed stores revenue | |||||||||||||||||||||||||||||||||
| 3.5 | 2.1 | Product and distribution costs | ||||||||||||||||||||||||||||||||||||
| Interest rates | (1.3) | — | (1.0) | (1.0) | Interest expense | |||||||||||||||||||||||||||||||||
| Net Investment Hedges: | ||||||||||||||||||||||||||||||||||||||
| Cross-currency swaps (1) | (77.4) | 114.0 | 27.0 | 14.2 | Interest expense | |||||||||||||||||||||||||||||||||
| Foreign currency debt | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Three Quarters Ended | ||||||||||||||||||||||||||||||||||||||
| Gains/(Losses) Recognized in OCI Before Reclassifications | Gains/(Losses) Reclassified from AOCI to Earnings | Location of gain/(loss) | ||||||||||||||||||||||||||||||||||||
| Jun 29, 2025 | Jun 30, 2024 | Jun 29, 2025 | Jun 30, 2024 | |||||||||||||||||||||||||||||||||||
| Cash Flow Hedges: | ||||||||||||||||||||||||||||||||||||||
| Coffee | $ | (36.2) | $ | 73.8 | $ | 62.1 | $ | (57.3) | Product and distribution costs | |||||||||||||||||||||||||||||
| Cross-currency swaps | 0.9 | 4.7 | — | 1.3 | Interest expense | |||||||||||||||||||||||||||||||||
| 1.4 | 2.4 | Interest income and other, net | ||||||||||||||||||||||||||||||||||||
| Dairy | (1.3) | (1.6) | 1.4 | (4.5) | Product and distribution costs | |||||||||||||||||||||||||||||||||
| Foreign currency - other | 17.1 | 33.3 | 20.2 | 24.5 | Licensed stores revenue | |||||||||||||||||||||||||||||||||
| 7.8 | 7.1 | Product and distribution costs | ||||||||||||||||||||||||||||||||||||
| Interest rates | (1.3) | — | (3.0) | (3.0) | Interest expense | |||||||||||||||||||||||||||||||||
| Net Investment Hedges: | ||||||||||||||||||||||||||||||||||||||
| Cross-currency swaps (1) | 143.2 | 187.6 | 82.4 | 33.3 | Interest expense | |||||||||||||||||||||||||||||||||
| Foreign currency debt | — | (6.3) | — | — | ||||||||||||||||||||||||||||||||||
(1) Gains and losses recognized in earnings relate to components excluded from the assessment of effectiveness.
Pre-tax gains and losses on non-designated derivatives and designated fair value hedging instruments and the related fair value hedged item recognized in earnings (in millions):
| Gains/(Losses) Recognized in Earnings | |||||||||||||||||||||||||||||
| Location of gain/(loss) recognized in earnings | Quarter Ended | Three Quarters Ended | |||||||||||||||||||||||||||
| Jun 29, 2025 | Jun 30, 2024 | Jun 29, 2025 | Jun 30, 2024 | ||||||||||||||||||||||||||
| Non-Designated Derivatives: | |||||||||||||||||||||||||||||
| Dairy | Interest income and other, net | $ | — | $ | — | $ | 0.1 | $ | — | ||||||||||||||||||||
| Foreign currency - other | Interest income and other, net | (7.8) | 3.4 | (1.7) | 4.6 | ||||||||||||||||||||||||
| Diesel fuel and other commodities | Interest income and other, net | — | (0.7) | (0.3) | (1.1) | ||||||||||||||||||||||||
| Fair Value Hedges: | |||||||||||||||||||||||||||||
| Interest rate swaps | Interest expense | 1.9 | (2.7) | (6.6) | (0.3) | ||||||||||||||||||||||||
| Long-term debt (hedged item) | Interest expense | (4.1) | (0.4) | (0.3) | (9.0) | ||||||||||||||||||||||||
Notional amounts of outstanding derivative contracts (in millions):
| Jun 29, 2025 | Sep 29, 2024 | ||||||||||
| Coffee | $ | 509 | $ | 154 | |||||||
| Cross-currency swaps | 4,197 | 4,213 | |||||||||
| Dairy | — | 65 | |||||||||
| Diesel fuel and other commodities | 13 | 3 | |||||||||
| Foreign currency - other | 1,018 | 920 | |||||||||
| Interest rate swaps | 350 | 350 |
Fair value of outstanding derivative contracts (in millions) including the location of the asset and/or liability on the consolidated balance sheets:
| Derivative Assets | |||||||||||||||||
| Balance Sheet Location | Jun 29, 2025 | Sep 29, 2024 | |||||||||||||||
| Designated Derivative Instruments(1): | |||||||||||||||||
| Cross-currency swaps | Prepaid expenses and other current assets | $ | 2.7 | $ | 3.9 | ||||||||||||
| Other long-term assets | 185.2 | 177.4 | |||||||||||||||
| Dairy | Prepaid expenses and other current assets | — | 0.8 | ||||||||||||||
| Foreign currency - other | Prepaid expenses and other current assets | 5.7 | 1.9 | ||||||||||||||
| Other long-term assets | 1.8 | 1.7 | |||||||||||||||
| Non-designated Derivative Instruments: | |||||||||||||||||
| Dairy | Prepaid expenses and other current assets | — | 0.3 | ||||||||||||||
| Diesel fuel and other commodities | Prepaid expenses and other current assets | 0.3 | — | ||||||||||||||
| Foreign currency | Prepaid expenses and other current assets | 1.0 | 1.8 | ||||||||||||||
| Derivative Liabilities | |||||||||||||||||
| Balance Sheet Location | Jun 29, 2025 | Sep 29, 2024 | |||||||||||||||
| Designated Derivative Instruments: | |||||||||||||||||
| Cross-currency swaps | Accrued liabilities | $ | — | $ | 21.7 | ||||||||||||
| Other long-term liabilities | 4.9 | 33.3 | |||||||||||||||
| Foreign currency - other | Accrued liabilities | 3.9 | 4.7 | ||||||||||||||
| Other long-term liabilities | 5.3 | 4.1 | |||||||||||||||
| Interest rate swaps | Other long-term liabilities | 20.5 | 19.2 | ||||||||||||||
| Non-designated Derivative Instruments: | |||||||||||||||||
| Diesel fuel and other commodities | Accrued liabilities | 0.2 | 0.3 | ||||||||||||||
| Foreign currency | Accrued liabilities | 2.3 | 2.5 | ||||||||||||||
| Other long-term liabilities | 0.4 | 0.1 |
(1) We also hold cash and cash equivalents from various settled-to-market exchange traded futures related to coffee and dairy hedging.
The following amounts were recorded on the consolidated balance sheets related to fixed-to-floating interest rate swaps designated in fair value hedging relationships (in millions):
| Carrying amount of hedged item | Cumulative amount of fair value hedging adjustment included in the carrying amount | ||||||||||||||||||||||
| Jun 29, 2025 | Sep 29, 2024 | Jun 29, 2025 | Sep 29, 2024 | ||||||||||||||||||||
| Location on the balance sheet | |||||||||||||||||||||||
| Long-term debt | $ | 332.4 | $ | 332.2 | $ | (17.6) | $ | (17.8) |
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.
Note 4: Fair Value Measurements
Assets and liabilities measured at fair value on a recurring basis (in millions):
| Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||
| Balance at June 29, 2025 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 4,172.6 | $ | 4,172.6 | $ | — | $ | — | |||||||||||||||
| Short-term investments: | |||||||||||||||||||||||
| Available-for-sale debt securities: | |||||||||||||||||||||||
| Corporate debt securities | 68.3 | — | 56.6 | 11.7 | |||||||||||||||||||
| Mortgage and other asset-backed securities | 0.4 | — | 0.4 | — | |||||||||||||||||||
| State and local government obligations | 1.1 | — | 1.1 | — | |||||||||||||||||||
| U.S. government treasury securities | 90.8 | 90.8 | — | — | |||||||||||||||||||
| Total available-for-sale debt securities | 160.6 | 90.8 | 58.1 | 11.7 | |||||||||||||||||||
| Structured deposits | 84.0 | — | 84.0 | — | |||||||||||||||||||
| Marketable equity securities | 88.7 | 88.7 | — | — | |||||||||||||||||||
| Total short-term investments | 333.3 | 179.5 | 142.1 | 11.7 | |||||||||||||||||||
| Prepaid expenses and other current assets: | |||||||||||||||||||||||
| Derivative assets | 9.7 | — | 9.7 | — | |||||||||||||||||||
| Long-term investments: | |||||||||||||||||||||||
| Available-for-sale debt securities: | |||||||||||||||||||||||
| Corporate debt securities | 120.6 | — | 94.7 | 25.9 | |||||||||||||||||||
| Mortgage and other asset-backed securities | 74.7 | — | 74.7 | — | |||||||||||||||||||
| State and local government obligations | 2.7 | — | 2.7 | — | |||||||||||||||||||
| U.S. government treasury securities | 34.0 | 34.0 | — | — | |||||||||||||||||||
| Total available-for-sale debt securities | 232.0 | 34.0 | 172.1 | 25.9 | |||||||||||||||||||
| Total long-term investments | 232.0 | 34.0 | 172.1 | 25.9 | |||||||||||||||||||
| Other long-term assets: | |||||||||||||||||||||||
| Derivative assets | 187.0 | — | 187.0 | — | |||||||||||||||||||
| Total assets | $ | 4,934.6 | $ | 4,386.1 | $ | 510.9 | $ | 37.6 | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued liabilities: | |||||||||||||||||||||||
| Derivative liabilities | $ | 6.4 | $ | — | $ | 6.4 | $ | — | |||||||||||||||
| Other long-term liabilities: | |||||||||||||||||||||||
| Derivative liabilities | 31.1 | — | 31.1 | — | |||||||||||||||||||
| Total liabilities | $ | 37.5 | $ | — | $ | 37.5 | $ | — |
| Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||
| Balance at September 29, 2024 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 3,286.2 | $ | 3,286.2 | $ | — | $ | — | |||||||||||||||
| Short-term investments: | |||||||||||||||||||||||
| Available-for-sale debt securities: | |||||||||||||||||||||||
| Corporate debt securities | 51.8 | — | 51.8 | — | |||||||||||||||||||
| Foreign corporate bonds | 0.2 | — | 0.2 | — | |||||||||||||||||||
| Mortgage and other asset-backed securities | 0.4 | — | 0.4 | — | |||||||||||||||||||
| State and local government obligations | 1.4 | — | 1.4 | — | |||||||||||||||||||
| U.S. government treasury securities | 36.9 | 36.9 | — | — | |||||||||||||||||||
| Total available-for-sale debt securities | 90.7 | 36.9 | 53.8 | — | |||||||||||||||||||
| Structured deposits | 84.1 | — | 84.1 | — | |||||||||||||||||||
| Marketable equity securities | 82.2 | 82.2 | — | — | |||||||||||||||||||
| Total short-term investments | 257.0 | 119.1 | 137.9 | — | |||||||||||||||||||
| Prepaid expenses and other current assets: | |||||||||||||||||||||||
| Derivative assets | 8.7 | — | 8.7 | — | |||||||||||||||||||
| Long-term investments: | |||||||||||||||||||||||
| Available-for-sale debt securities: | |||||||||||||||||||||||
| Corporate debt securities | 112.8 | — | 101.8 | 11.0 | |||||||||||||||||||
| Mortgage and other asset-backed securities | 64.4 | — | 64.4 | — | |||||||||||||||||||
| State and local government obligations | 3.7 | — | 3.7 | — | |||||||||||||||||||
| U.S. government treasury securities | 94.9 | 94.9 | — | — | |||||||||||||||||||
| Total available-for-sale debt securities | 275.8 | 94.9 | 169.9 | 11.0 | |||||||||||||||||||
| Structured deposits | 0.2 | — | 0.2 | — | |||||||||||||||||||
| Total long-term investments | 276.0 | 94.9 | 170.1 | 11.0 | |||||||||||||||||||
| Other long-term assets: | |||||||||||||||||||||||
| Derivative assets | 179.1 | — | 179.1 | — | |||||||||||||||||||
| Total assets | $ | 4,007.0 | $ | 3,500.2 | $ | 495.8 | $ | 11.0 | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued liabilities: | |||||||||||||||||||||||
| Derivative liabilities | $ | 29.2 | $ | — | $ | 29.2 | $ | — | |||||||||||||||
| Other long-term liabilities: | |||||||||||||||||||||||
| Derivative liabilities | 56.7 | — | 56.7 | — | |||||||||||||||||||
| Total liabilities | $ | 85.9 | $ | — | $ | 85.9 | $ | — |
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.
The estimated fair value of our long-term debt based on the quoted market price (Level 2) is included at Note 8, Debt. There were no material fair value adjustments during the three quarters ended June 29, 2025 and June 30, 2024.
Note 5: Inventories (in millions):
| Jun 29, 2025 | Sep 29, 2024 | ||||||||||
| Coffee: | |||||||||||
| Unroasted | $ | 1,063.9 | $ | 665.1 | |||||||
| Roasted | 304.5 | 251.9 | |||||||||
| Other merchandise held for sale (1) | 344.2 | 384.6 | |||||||||
| Packaging and other supplies | 546.6 | 475.7 | |||||||||
| Total | $ | 2,259.2 | $ | 1,777.3 |
(1)“Other merchandise held for sale” includes, among other items, food, serveware, and tea. Inventory levels vary due to seasonality, commodity market supply, and price fluctuations.
As of June 29, 2025, we had committed to purchasing green coffee totaling $250 million under fixed-price contracts and an estimated $626 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: Supplemental Balance Sheet and Statement of Earnings Information (in millions):
Property, Plant and Equipment, net
| Jun 29, 2025 | Sep 29, 2024 | ||||||||||
| Land | $ | 56.9 | $ | 56.9 | |||||||
| Buildings | 680.0 | 684.8 | |||||||||
| Leasehold improvements | 11,980.7 | 11,453.9 | |||||||||
| Store equipment | 4,026.0 | 3,803.6 | |||||||||
| Roasting equipment | 937.6 | 865.7 | |||||||||
| Capitalized software | 1,149.6 | 1,049.7 | |||||||||
| Furniture, fixtures and other | 887.8 | 775.5 | |||||||||
| Work in progress | 601.2 | 750.9 | |||||||||
| Property, plant and equipment, gross | 20,319.8 | 19,441.0 | |||||||||
| Accumulated depreciation | (11,426.1) | (10,775.5) | |||||||||
| Property, plant and equipment, net | $ | 8,893.7 | $ | 8,665.5 |
Accrued Liabilities
| Jun 29, 2025 | Sep 29, 2024 | ||||||||||
| Accrued occupancy costs | $ | 80.5 | $ | 81.7 | |||||||
| Accrued dividends payable | 693.2 | 691.2 | |||||||||
| Accrued capital and other operating expenditures | 805.4 | 842.8 | |||||||||
| Insurance reserves | 279.7 | 244.3 | |||||||||
| Income taxes payable | 170.3 | 123.5 | |||||||||
| Accrued business taxes | 216.7 | 211.2 | |||||||||
| Total accrued liabilities | $ | 2,245.8 | $ | 2,194.7 |
Store Operating Expenses
| Quarter Ended | Three Quarters Ended | ||||||||||||||||||||||
| Jun 29, 2025 | Jun 30, 2024 | Jun 29, 2025 | Jun 30, 2024 | ||||||||||||||||||||
| Wages and benefits | $ | 2,477.7 | $ | 2,215.7 | $ | 7,272.9 | $ | 6,564.4 | |||||||||||||||
| Occupancy costs | 828.6 | 764.3 | 2,437.9 | 2,251.3 | |||||||||||||||||||
| Other expenses | 1,038.5 | 849.1 | 3,013.1 | 2,589.0 | |||||||||||||||||||
| Total store operating expenses | $ | 4,344.8 | $ | 3,829.1 | $ | 12,723.9 | $ | 11,404.7 |
Note 7: Other Intangible Assets and Goodwill
Indefinite-Lived Intangible Assets
| (in millions) | Jun 29, 2025 | Sep 29, 2024 | |||||||||
| Trade names, trademarks and patents | $ | 79.5 | $ | 79.5 |
Finite-Lived Intangible Assets
| Jun 29, 2025 | Sep 29, 2024 | ||||||||||||||||||||||||||||||||||
| (in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||
| Acquired and reacquired rights | $ | 1,065.9 | $ | (983.8) | $ | 82.1 | $ | 995.5 | $ | (995.5) | $ | — | |||||||||||||||||||||||
| Acquired trade secrets and processes | 27.6 | (27.6) | — | 27.6 | (27.6) | — | |||||||||||||||||||||||||||||
| Trade names, trademarks and patents | 130.2 | (122.4) | 7.8 | 130.4 | (110.0) | 20.4 | |||||||||||||||||||||||||||||
| Licensing agreements | 13.5 | (13.2) | 0.3 | 13.4 | (12.4) | 1.0 | |||||||||||||||||||||||||||||
| Other finite-lived intangible assets | 20.5 | (20.5) | — | 20.9 | (20.9) | — | |||||||||||||||||||||||||||||
| Total finite-lived intangible assets | $ | 1,257.7 | $ | (1,167.5) | $ | 90.2 | $ | 1,187.8 | $ | (1,166.4) | $ | 21.4 |
Amortization expense for finite-lived intangible assets was $4.4 million and $15.8 million for the quarter and three quarters ended June 29, 2025, respectively, and $5.1 million and $15.3 million for the quarter and three quarters ended June 30, 2024, respectively.
Estimated future amortization expense as of June 29, 2025 (in millions):
| Fiscal Year | Total | ||||
| 2025 (excluding the three quarters ended June 29, 2025) | $ | 1.8 | |||
| 2026 | 6.2 | ||||
| 2027 | 5.9 | ||||
| 2028 | 5.3 | ||||
| 2029 | 4.9 | ||||
| Thereafter | 66.1 | ||||
| Total estimated future amortization expense | $ | 90.2 |
Goodwill
Changes in the carrying amount of goodwill by reportable operating segment (in millions):
| North America | International | Channel Development | Corporate and Other | Total | |||||||||||||||||||||||||
| Goodwill balance at September 29, 2024 | $ | 491.5 | $ | 2,788.5 | $ | 34.7 | $ | 1.0 | $ | 3,315.7 | |||||||||||||||||||
| Acquisition(1) | — | 106.2 | — | — | 106.2 | ||||||||||||||||||||||||
| Other(2) | (0.4) | (36.7) | — | — | (37.1) | ||||||||||||||||||||||||
| Goodwill balance at June 29, 2025 | $ | 491.1 | $ | 2,858.0 | $ | 34.7 | $ | 1.0 | $ | 3,384.8 |
(1)Additions to goodwill include the acquisition of 23.5 Degrees Topco Limited in the first quarter of fiscal 2025.
(2)“Other” consists of changes in the goodwill balance resulting from foreign currency translation.
Note 8: Debt
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.
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 $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.
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 Tokyo Interbank Offered Rate (“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.
Long-term Debt
Components of long-term debt including the associated interest rates and related estimated fair values by calendar maturity (in millions, except interest rates):
| Jun 29, 2025 | Sep 29, 2024 | Stated Interest Rate | Effective Interest Rate**(1)** | |||||||||||||||||||||||
| Issuance | Amount | Estimated Fair Value | Amount | Estimated Fair Value | ||||||||||||||||||||||
| August 2025 notes | $ | 1,250.0 | $ | 1,248.7 | $ | 1,250.0 | $ | 1,243.4 | 3.800 | % | 3.721 | % | ||||||||||||||
| February 2026 notes | 1,000.0 | 1,000.0 | 1,000.0 | 1,008.3 | 4.750 | % | 4.788 | % | ||||||||||||||||||
| June 2026 notes | 500.0 | 490.4 | 500.0 | 486.8 | 2.450 | % | 2.511 | % | ||||||||||||||||||
| February 2027 notes | 1,000.0 | 1,008.2 | 1,000.0 | 1,017.8 | 4.850 | % | 4.958 | % | ||||||||||||||||||
| March 2027 notes | 500.0 | 480.7 | 500.0 | 477.1 | 2.000 | % | 2.058 | % | ||||||||||||||||||
| March 2028 notes | 600.0 | 588.2 | 600.0 | 590.3 | 3.500 | % | 3.529 | % | ||||||||||||||||||
| May 2028 notes | 750.0 | 753.5 | — | — | 4.500 | % | 4.719 | % | ||||||||||||||||||
| November 2028 notes | 750.0 | 742.9 | 750.0 | 748.4 | 4.000 | % | 3.958 | % | ||||||||||||||||||
| August 2029 notes(2) | 1,000.0 | 970.3 | 1,000.0 | 977.3 | 3.550 | % | 3.840 | % | ||||||||||||||||||
| March 2030 notes | 750.0 | 679.0 | 750.0 | 679.0 | 2.250 | % | 3.084 | % | ||||||||||||||||||
| May 2030 notes | 500.0 | 505.7 | — | — | 4.800 | % | 4.932 | % | ||||||||||||||||||
| November 2030 notes | 1,250.0 | 1,129.2 | 1,250.0 | 1,135.4 | 2.550 | % | 2.582 | % | ||||||||||||||||||
| February 2031 notes | 500.0 | 508.9 | 500.0 | 520.8 | 4.900 | % | 5.046 | % | ||||||||||||||||||
| February 2032 notes | 1,000.0 | 900.0 | 1,000.0 | 912.0 | 3.000 | % | 3.155 | % | ||||||||||||||||||
| February 2033 notes | 500.0 | 499.0 | 500.0 | 513.1 | 4.800 | % | 3.798 | % | ||||||||||||||||||
| February 2034 notes | 500.0 | 501.2 | 500.0 | 515.0 | 5.000 | % | 5.127 | % | ||||||||||||||||||
| May 2035 notes | 500.0 | 506.9 | — | — | 5.400 | % | 5.510 | % | ||||||||||||||||||
| June 2045 notes | 350.0 | 281.7 | 350.0 | 308.5 | 4.300 | % | 4.348 | % | ||||||||||||||||||
| December 2047 notes | 500.0 | 364.8 | 500.0 | 398.8 | 3.750 | % | 3.765 | % | ||||||||||||||||||
| November 2048 notes | 1,000.0 | 822.6 | 1,000.0 | 903.4 | 4.500 | % | 4.504 | % | ||||||||||||||||||
| August 2049 notes | 1,000.0 | 811.5 | 1,000.0 | 889.0 | 4.450 | % | 4.447 | % | ||||||||||||||||||
| March 2050 notes | 500.0 | 333.7 | 500.0 | 367.9 | 3.350 | % | 3.362 | % | ||||||||||||||||||
| November 2050 notes | 1,250.0 | 865.4 | 1,250.0 | 954.4 | 3.500 | % | 3.528 | % | ||||||||||||||||||
| Total | 17,450.0 | 15,992.5 | 15,700.0 | 14,646.7 | ||||||||||||||||||||||
| Aggregate debt issuance costs and unamortized premium/(discount), net | (113.3) | (113.8) | ||||||||||||||||||||||||
| Hedge accounting fair value adjustment(2) | (17.6) | (17.8) | ||||||||||||||||||||||||
| Total | $ | 17,319.1 | $ | 15,568.4 |
(1)Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury locks or forward-starting interest rate swaps utilized to hedge interest rate risk prior to the debt issuance.
(2)Amount includes the change in fair value due to changes in benchmark interest rates related to hedging $350.0 million of our August 2029 notes. Refer to Note 3, Derivative Financial Instruments, for additional information on our interest rate swap agreements designated as fair value hedges.
The following table summarizes our long-term debt maturities as of June 29, 2025 by fiscal year (in millions):
| Fiscal Year | Total | ||||
| 2025 (excluding the three quarters ended June 29, 2025) | $ | 1,250.0 | |||
| 2026 | 1,500.0 | ||||
| 2027 | 1,500.0 | ||||
| 2028 | 1,350.0 | ||||
| 2029 | 1,750.0 | ||||
| Thereafter | 10,100.0 | ||||
| Total | $ | 17,450.0 |
Note 9: Leases
The components of lease costs (in millions):
| Quarter Ended | Three Quarters Ended | ||||||||||||||||||||||
| Jun 29, 2025 | Jun 30, 2024 | Jun 29, 2025 | Jun 30, 2024 | ||||||||||||||||||||
| Operating lease costs(1) | $ | 472.7 | $ | 431.3 | $ | 1,389.9 | $ | 1,272.8 | |||||||||||||||
| Variable lease costs | 304.8 | 279.3 | 895.7 | 822.9 | |||||||||||||||||||
| Short-term lease costs | 5.3 | 6.2 | 16.1 | 21.1 | |||||||||||||||||||
| Total lease costs | $ | 782.8 | $ | 716.8 | $ | 2,301.7 | $ | 2,116.8 |
(1)Includes immaterial amounts of sublease income and rent concessions.
The following table includes supplemental information (in millions):
| Three Quarters Ended | |||||||||||
| Jun 29, 2025 | Jun 30, 2024 | ||||||||||
| Cash paid related to operating lease liabilities | $ | 1,411.9 | $ | 1,223.7 | |||||||
| Operating lease liabilities arising from obtaining right-of-use assets(1) | 1,489.0 | 1,548.7 | |||||||||
| Jun 29, 2025 | Jun 30, 2024 | ||||||||||
| Weighted-average remaining operating lease term | 8.6 years | 8.6 years | |||||||||
| Weighted-average operating lease discount rate | 3.6 | % | 3.3 | % |
(1)Includes leases obtained in the acquisition of 23.5 Degrees Topco Limited in the first quarter of fiscal 2025.
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.
Minimum future maturities of operating lease liabilities (in millions):
| Fiscal Year | Total | ||||
| 2025 (excluding the three quarters ended June 29, 2025) | $ | 478.9 | |||
| 2026 | 1,875.3 | ||||
| 2027 | 1,703.4 | ||||
| 2028 | 1,500.8 | ||||
| 2029 | 1,313.1 | ||||
| Thereafter | 5,551.2 | ||||
| Total lease payments | 12,422.7 | ||||
| Less imputed interest | (1,855.7) | ||||
| Total | $ | 10,567.0 |
As of June 29, 2025, we have entered into operating leases that have not yet commenced of $1.2 billion, primarily related to real estate leases. These leases will commence between fiscal year 2025 and fiscal year 2029 with lease terms ranging from 5 to 20 years.
Note 10: Deferred Revenue
Our deferred revenue primarily consists of the prepaid royalty from Nestlé, for which we have continuing performance obligations to support the Global Coffee Alliance, our unredeemed stored value card liability, and unredeemed loyalty points (“Stars”) associated with our loyalty program.
As of June 29, 2025, the current and long-term deferred revenue related to the Nestlé up-front payment was $177.0 million and $5.7 billion, respectively. As of September 29, 2024, the current and long-term deferred revenue related to the Nestlé up-front payment was $177.0 million and $5.8 billion, respectively. During each of the quarters ended June 29, 2025 and June 30, 2024, we recognized $44.1 million of prepaid royalty revenue related to Nestlé. During each of the three quarters ended June 29, 2025 and June 30, 2024, we recognized $132.3 million of prepaid royalty revenue related to Nestlé.
Changes in our deferred revenue balance related to our stored value cards and loyalty program (in millions):
| Quarter Ended June 29, 2025 | Total | ||||
| Stored value cards and loyalty program at March 30, 2025 | $ | 1,853.2 | |||
| Revenue deferred - card activations, card reloads and Stars earned | 3,764.0 | ||||
| Revenue recognized - card and Stars redemptions and breakage | (3,788.2) | ||||
| Other(1) | 15.3 | ||||
| Stored value cards and loyalty program at June 29, 2025(2) | $ | 1,844.3 | |||
| Quarter Ended June 30, 2024 | Total | ||||
| Stored value cards and loyalty program at March 31, 2024 | $ | 1,818.9 | |||
| Revenue deferred - card activations, card reloads and Stars earned | 3,833.4 | ||||
| Revenue recognized - card and Stars redemptions and breakage | (3,870.2) | ||||
| Other(1) | (8.3) | ||||
| Stored value cards and loyalty program at June 30, 2024(2) | $ | 1,773.8 | |||
| Three Quarters Ended June 29, 2025 | Total | ||||
| Stored value cards and loyalty program at September 29, 2024 | $ | 1,718.7 | |||
| Revenue deferred - card activations, card reloads and Stars earned | 11,675.2 | ||||
| Revenue recognized - card and Stars redemptions and breakage | (11,544.0) | ||||
| Other(1) | (5.6) | ||||
| Stored value cards and loyalty program at June 29, 2025(2) | $ | 1,844.3 | |||
| Three Quarters Ended June 30, 2024 | Total | ||||
| Stored value cards and loyalty program at October 1, 2023 | $ | 1,567.5 | |||
| Revenue deferred - card activations, card reloads and Stars earned | 11,977.1 | ||||
| Revenue recognized - card and Stars redemptions and breakage | (11,761.0) | ||||
| Other(1) | (9.8) | ||||
| Stored value cards and loyalty program at June 30, 2024(2) | $ | 1,773.8 |
(1)“Other” primarily consists of changes in the stored value cards and loyalty program balances resulting from foreign currency translation.
(2)As of June 29, 2025 and June 30, 2024, approximately $1.7 billion and $1.6 billion, respectively, of these amounts were current.
Note 11: Equity
Changes in AOCI by component, net of tax (in millions):
| Quarter Ended | Available-for-Sale Debt Securities | Cash Flow Hedges | Net Investment Hedges | Translation Adjustment and Other | Total | ||||||||||||||||||||||||
| June 29, 2025 | |||||||||||||||||||||||||||||
| Net gains/(losses) in AOCI, beginning of period | $ | (1.8) | $ | 67.3 | $ | 371.1 | $ | (965.6) | $ | (529.0) | |||||||||||||||||||
| Net gains/(losses) recognized in OCI before reclassifications | 1.4 | (68.0) | (58.0) | 157.6 | 33.0 | ||||||||||||||||||||||||
| Net (gains)/losses reclassified from AOCI to earnings | 0.2 | (19.3) | (20.2) | — | (39.3) | ||||||||||||||||||||||||
| Other comprehensive income/(loss) attributable to Starbucks | 1.6 | (87.3) | (78.2) | 157.6 | (6.3) | ||||||||||||||||||||||||
| Other comprehensive income/(loss) attributable to NCI | — | — | — | 0.1 | 0.1 | ||||||||||||||||||||||||
| Net gains/(losses) in AOCI, end of period | $ | (0.2) | $ | (20.0) | $ | 292.9 | $ | (807.9) | $ | (535.2) | |||||||||||||||||||
| June 30, 2024 | |||||||||||||||||||||||||||||
| Net gains/(losses) in AOCI, beginning of period | $ | (7.9) | $ | 40.6 | $ | 279.2 | $ | (933.4) | $ | (621.5) | |||||||||||||||||||
| Net gains/(losses) recognized in OCI before reclassifications | 0.8 | 29.5 | 85.2 | (92.0) | 23.5 | ||||||||||||||||||||||||
| Net (gains)/losses reclassified from AOCI to earnings | 0.2 | 0.5 | (10.6) | (0.1) | (10.0) | ||||||||||||||||||||||||
| Other comprehensive income/(loss) attributable to Starbucks | 1.0 | 30.0 | 74.6 | (92.1) | 13.5 | ||||||||||||||||||||||||
| Net gains/(losses) in AOCI, end of period | $ | (6.9) | $ | 70.6 | $ | 353.8 | $ | (1,025.5) | $ | (608.0) | |||||||||||||||||||
| Three Quarters Ended | Available-for-Sale Debt Securities | Cash Flow Hedges | Net Investment Hedges | Translation Adjustment and Other | Total | ||||||||||||||||||||||||
| June 29, 2025 | |||||||||||||||||||||||||||||
| Net gains/(losses) in AOCI, beginning of period | $ | (2.3) | $ | 70.5 | $ | 247.7 | $ | (744.7) | $ | (428.8) | |||||||||||||||||||
| Net gains/(losses) recognized in OCI before reclassifications | 1.5 | (21.4) | 106.9 | (63.0) | 24.0 | ||||||||||||||||||||||||
| Net (gains)/losses reclassified from AOCI to earnings | 0.6 | (69.1) | (61.7) | — | (130.2) | ||||||||||||||||||||||||
| Other comprehensive income/(loss) attributable to Starbucks | 2.1 | (90.5) | 45.2 | (63.0) | (106.2) | ||||||||||||||||||||||||
| Other comprehensive income/(loss) attributable to NCI | — | — | — | (0.2) | (0.2) | ||||||||||||||||||||||||
| Net gains/(losses) in AOCI, end of period | $ | (0.2) | $ | (20.0) | $ | 292.9 | $ | (807.9) | $ | (535.2) | |||||||||||||||||||
| June 30, 2024 | |||||||||||||||||||||||||||||
| Net gains/(losses) in AOCI, beginning of period | $ | (12.3) | $ | (47.5) | $ | 243.3 | $ | (961.7) | $ | (778.2) | |||||||||||||||||||
| Net gains/(losses) recognized in OCI before reclassifications | 4.7 | 90.2 | 135.5 | (63.8) | 166.6 | ||||||||||||||||||||||||
| Net (gains)/losses reclassified from AOCI to earnings | 0.7 | 27.9 | (25.0) | (0.1) | 3.5 | ||||||||||||||||||||||||
| Other comprehensive income/(loss) attributable to Starbucks | 5.4 | 118.1 | 110.5 | (63.9) | 170.1 | ||||||||||||||||||||||||
| Other comprehensive income/(loss) attributable to NCI | — | — | — | 0.1 | 0.1 | ||||||||||||||||||||||||
| Net gains/(losses) in AOCI, end of period | $ | (6.9) | $ | 70.6 | $ | 353.8 | $ | (1,025.5) | $ | (608.0) | |||||||||||||||||||
Impact of reclassifications from AOCI on the consolidated statements of earnings (in millions):
| Quarter Ended | ||||||||||||||||||||
| AOCI Components | Amounts Reclassified from AOCI | Affected Line Item in the Statements of Earnings | ||||||||||||||||||
| Jun 29, 2025 | Jun 30, 2024 | |||||||||||||||||||
| Gains/(losses) on available-for-sale debt securities | $ | (0.2) | $ | (0.3) | Interest income and other, net | |||||||||||||||
| Gains/(losses) on cash flow hedges | 23.5 | 0.2 | Please refer to Note 3, Derivative Financial Instruments for additional information. | |||||||||||||||||
| Gains/(losses) on net investment hedges | 27.0 | 14.2 | Interest expense | |||||||||||||||||
| Translation adjustment(1) | ||||||||||||||||||||
| Other | — | 0.1 | Interest income and other, net | |||||||||||||||||
| 50.3 | 14.2 | Total before tax | ||||||||||||||||||
| (11.0) | (4.2) | Tax (expense)/benefit | ||||||||||||||||||
| $ | 39.3 | $ | 10.0 | Net of tax | ||||||||||||||||
| Three Quarters Ended | ||||||||||||||||||||
| AOCI Components | Amounts Reclassified from AOCI | Affected Line Item in the Statements of Earnings | ||||||||||||||||||
| Jun 29, 2025 | Jun 30, 2024 | |||||||||||||||||||
| Gains/(losses) on available-for-sale debt securities | $ | (0.6) | $ | (1.0) | Interest income and other, net | |||||||||||||||
| Gains/(losses) on cash flow hedges | 89.9 | (29.5) | Please refer to Note 3, Derivative Financial Instruments for additional information. | |||||||||||||||||
| Gains/(losses) on net investment hedges | 82.4 | 33.3 | Interest expense | |||||||||||||||||
| Translation adjustment(1) | ||||||||||||||||||||
| Other | — | 0.1 | Interest income and other, net | |||||||||||||||||
| 171.7 | 2.9 | Total before tax | ||||||||||||||||||
| (41.5) | (6.4) | Tax (expense)/benefit | ||||||||||||||||||
| $ | 130.2 | $ | (3.5) | 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 2.4 billion shares of authorized common stock with $0.001 par value per share, we have 7.5 million shares of authorized preferred stock, none of which was outstanding as of June 29, 2025.
During the three quarters ended June 29, 2025, we made no share repurchases. During the three quarters ended June 30, 2024, we repurchased 12.8 million shares of common stock on the open market for $1,250.1 million. As of June 29, 2025, 29.8 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 $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.
Note 12: Employee Stock Plans
As of June 29, 2025, there were 76.2 million shares of common stock available for issuance pursuant to future equity-based compensation awards and 9.2 million shares available for issuance under our employee stock purchase plan.
Stock-based compensation expense recognized in the consolidated statements of earnings (in millions):
| Quarter Ended | Three Quarters Ended | ||||||||||||||||||||||
| Jun 29, 2025 | Jun 30, 2024 | Jun 29, 2025 | Jun 30, 2024 | ||||||||||||||||||||
| Restricted Stock Units (“RSUs”) | $ | 66.0 | $ | 63.7 | $ | 244.3 | $ | 236.9 | |||||||||||||||
| Options | — | (0.2) | — | (0.4) | |||||||||||||||||||
| Total stock-based compensation expense | $ | 66.0 | $ | 63.5 | $ | 244.3 | $ | 236.5 |
Stock option and RSU transactions from September 29, 2024 through June 29, 2025 (in millions):
| Stock Options | RSUs | ||||||||||
| Options outstanding/Nonvested RSUs, September 29, 2024 | 0.9 | 8.7 | |||||||||
| Granted | — | 4.6 | |||||||||
| Options exercised/RSUs vested | (0.3) | (3.1) | |||||||||
| Forfeited/expired | — | (1.5) | |||||||||
| Options outstanding/Nonvested RSUs, June 29, 2025 | 0.6 | 8.7 | |||||||||
| Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of June 29, 2025 | $ | — | $ | 282.0 |
Note 13: Earnings per Share
Calculation of net earnings per common share (“EPS”) — basic and diluted (in millions, except EPS):
| Quarter Ended | Three Quarters Ended | ||||||||||||||||||||||
| Jun 29, 2025 | Jun 30, 2024 | Jun 29, 2025 | Jun 30, 2024 | ||||||||||||||||||||
| Net earnings attributable to Starbucks | $ | 558.3 | $ | 1,054.8 | $ | 1,723.2 | $ | 2,851.7 | |||||||||||||||
| Weighted average common shares outstanding (for basic calculation) | 1,136.4 | 1,132.8 | 1,135.7 | 1,133.9 | |||||||||||||||||||
| Dilutive effect of outstanding common stock options and RSUs | 3.4 | 3.0 | 3.7 | 3.4 | |||||||||||||||||||
| Weighted average common and common equivalent shares outstanding (for diluted calculation) | 1,139.8 | 1,135.8 | 1,139.4 | 1,137.3 | |||||||||||||||||||
| EPS — basic | $ | 0.49 | $ | 0.93 | $ | 1.52 | $ | 2.51 | |||||||||||||||
| EPS — diluted | $ | 0.49 | $ | 0.93 | $ | 1.51 | $ | 2.51 |
Potential dilutive shares consist of the incremental common shares issuable upon the exercise of outstanding stock options (both vested and non-vested) and unvested RSUs, calculated using the treasury stock method. The calculation of dilutive shares outstanding excludes anti-dilutive stock options or unvested RSUs, which were immaterial in the periods presented.
Note 14: Commitments and Contingencies
Legal Proceedings
Starbucks is involved in various legal proceedings arising in the ordinary course of business, including litigation matters associated with labor union organizing efforts and certain employment litigation cases that have been certified as class or collective actions, but is not currently a party to any legal proceeding that management believes could have a material adverse effect on our consolidated financial position, results of operations, or cash flows. While we are closely monitoring the operational and financial impacts of labor union organizing efforts on our business, as of the date of this filing, we believe the risk of a material contingent loss associated with these litigation matters is remote. Refer to the Risk Factors in Part I, Item 1A of our most recently filed 10-K for further discussion of potential risks to our brand and related impacts on our financial results.
Note 15: Segment Reporting
Segment information is prepared on the same basis that our chief executive officer, who is our Chief Operating Decision Maker, manages the segments, evaluates financial results, and makes key operating decisions.
Consolidated revenue mix by product type (in millions):
| Quarter Ended | Three Quarters Ended | ||||||||||||||||||||||||||||||||||||||||||||||
| Jun 29, 2025 | Jun 30, 2024 | Jun 29, 2025 | Jun 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Beverage(1) | $ | 5,752.0 | 61 | % | $ | 5,528.0 | 61 | % | $ | 16,723.8 | 61 | % | $ | 16,384.4 | 60 | % | |||||||||||||||||||||||||||||||
| Food(2) | 1,787.5 | 19 | % | 1,744.5 | 19 | % | 5,269.9 | 19 | % | 5,084.4 | 19 | % | |||||||||||||||||||||||||||||||||||
| Other(3) | 1,916.5 | 20 | % | 1,841.4 | 20 | % | 5,621.7 | 20 | % | 5,633.5 | 21 | % | |||||||||||||||||||||||||||||||||||
| Total | $ | 9,456.0 | 100 | % | $ | 9,113.9 | 100 | % | $ | 27,615.4 | 100 | % | $ | 27,102.3 | 100 | % |
(1)“Beverage” represents sales within our company-operated stores.
(2)“Food” represents sales within our company-operated stores.
(3)“Other” primarily consists of packaged and single-serve coffees and teas, royalty and licensing revenues, beverage-related ingredients, and serveware, among other items.
The tables below present financial information for our reportable operating segments and Corporate and Other (in millions):
Quarter Ended
| North America | International | Channel Development | Corporate and Other | Total | |||||||||||||||||||||||||
| June 29, 2025 | |||||||||||||||||||||||||||||
| Total net revenues | $ | 6,927.0 | $ | 2,010.7 | $ | 483.8 | $ | 34.5 | $ | 9,456.0 | |||||||||||||||||||
| Depreciation and amortization expenses | 303.5 | 91.4 | — | 32.7 | 427.6 | ||||||||||||||||||||||||
| Income/(loss) from equity investees | — | (1.3) | 58.4 | — | 57.1 | ||||||||||||||||||||||||
| Operating income/(loss) | $ | 918.7 | $ | 272.7 | $ | 218.4 | $ | (474.2) | $ | 935.6 | |||||||||||||||||||
| June 30, 2024 | |||||||||||||||||||||||||||||
| Total net revenues | $ | 6,816.7 | $ | 1,842.1 | $ | 438.3 | $ | 16.8 | $ | 9,113.9 | |||||||||||||||||||
| Depreciation and amortization expenses | 266.6 | 82.7 | — | 31.1 | 380.4 | ||||||||||||||||||||||||
| Income/(loss) from equity investees | — | 2.5 | 71.4 | — | 73.9 | ||||||||||||||||||||||||
| Operating income/(loss) | $ | 1,432.7 | $ | 287.5 | $ | 235.2 | $ | (437.9) | $ | 1,517.5 | |||||||||||||||||||
| Three Quarters Ended | |||||||||||||||||||||||||||||
| North America | International | Channel Development | Corporate and Other | Total | |||||||||||||||||||||||||
| June 29, 2025 | |||||||||||||||||||||||||||||
| Total net revenues | $ | 20,471.7 | $ | 5,749.1 | $ | 1,329.0 | $ | 65.6 | $ | 27,615.4 | |||||||||||||||||||
| Depreciation and amortization expenses | 891.6 | 269.5 | — | 92.9 | 1,254.0 | ||||||||||||||||||||||||
| Income from equity investees | — | (2.1) | 164.8 | — | 162.7 | ||||||||||||||||||||||||
| Operating income/(loss) | $ | 2,848.3 | $ | 726.9 | $ | 619.8 | $ | (1,536.6) | $ | 2,658.4 | |||||||||||||||||||
| June 30, 2024 | |||||||||||||||||||||||||||||
| Total net revenues | $ | 20,317.6 | $ | 5,445.6 | $ | 1,304.5 | $ | 34.6 | $ | 27,102.3 | |||||||||||||||||||
| Depreciation and amortization expenses | 774.2 | 251.0 | — | 92.4 | 1,117.6 | ||||||||||||||||||||||||
| Income from equity investees | — | 2.9 | 194.9 | — | 197.8 | ||||||||||||||||||||||||
| Operating income/(loss) | $ | 4,101.8 | $ | 762.8 | $ | 661.2 | $ | (1,423.9) | $ | 4,101.9 |
Note 16: Restructuring
In the fourth quarter of fiscal 2024, we announced our “Back to Starbucks” strategy, which was implemented with the goal to bring customers back to our stores and return to growth. As part of this strategy, during the second quarter of fiscal 2025, we further decided and announced our plan to restructure our support organization in an effort to operate more efficiently, increase accountability, reduce complexity, and drive better integration, which resulted in a reduction in our support partner workforce. During the quarter and three quarters ended June 29, 2025, we recognized pre-tax restructuring charges of $20.8 million and $137.0 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 $29 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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