What changed in this filing

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Item 1. Financial Statements

2024-07-30 compared with 2024-04-30 · 104 added, 101 removed, 717 unchanged (22% of the section changed)

3 unchanged sentences

(in millions, except per share data, unaudited)

Quarter Ended Two Quarters Ended

Quarter Ended Three Quarters Ended

Net revenues:

29 unchanged sentences

(in millions, unaudited)

Quarter Ended Two Quarters Ended

Quarter Ended Three Quarters Ended

Net earnings including noncontrolling interests $ 1,055.7 $ 1,141.9 $ 2,852.7 $ 2,905.4

64 unchanged sentences

(in millions, unaudited)

Two Quarters Ended

Three Quarters Ended

OPERATING ACTIVITIES:

51 unchanged sentences

CONSOLIDATED STATEMENTS OF EQUITY

For the Quarter Ended March 31, 2024 and April 2, 2023

For the Quarter Ended June 30, 2024 and July 2, 2023

(in millions, except per share data, unaudited)

6 unchanged sentences

Shares Amount

Balance, December 31, 2023

Balance, March 31, 2024

1,132.7 $ 1.1 $ 141.7 $ ( 7,970.7 ) $ ( 621.5 ) $ ( 8,449.4 ) $ 7.2 $ ( 8,442.2 )

9 unchanged sentences

— — — — — — ( 0.1 ) ( 0.1 )

Balance, March 31, 2024

Balance, June 30, 2024

1,133.1 $ 1.1 $ 223.0 $ ( 7,561.5 ) $ ( 608.0 ) $ ( 7,945.4 ) $ 8.0 $ ( 7,937.4 )

Balance, January 1, 2023

Balance, April 2, 2023

1,147.0 $ 1.1 $ 38.2 $ ( 8,024.6 ) $ ( 521.6 ) $ ( 8,506.9 ) $ 7.5 $ ( 8,499.4 )

8 unchanged sentences

Purchase of noncontrolling interests — — — — ( 0.7 ) ( 0.7 ) — ( 0.7 )

Balance, April 2, 2023

Balance, July 2, 2023

1,145.4 $ 1.1 $ 38.3 $ ( 7,610.5 ) $ ( 777.5 ) $ ( 8,348.6 ) $ 7.0 $ ( 8,341.6 )

3 unchanged sentences

CONSOLIDATED STATEMENTS OF EQUITY

For the Two Quarters Ended March 31, 2024 and April 2, 2023

For the Three Quarters Ended June 30, 2024 and July 2, 2023

(in millions, except per share data, unaudited)

17 unchanged sentences

— — — ( 1,933.5 ) — ( 1,933.5 ) — ( 1,933.5 )

Other — — — — 0.1 0.1 — 0.1

Balance, March 31, 2024

Balance, June 30, 2024

1,133.1 $ 1.1 $ 223.0 $ ( 7,561.5 ) $ ( 608.0 ) $ ( 7,945.4 ) $ 8.0 $ ( 7,937.4 )

9 unchanged sentences

— — — ( 1,823.4 ) — ( 1,823.4 ) — ( 1,823.4 )

Purchase of noncontrolling interests — — ( 3.0 ) — — ( 3.0 ) ( 0.4 ) ( 3.4 )

Balance, April 2, 2023

Purchase of noncontrolling interests and other — — ( 3.0 ) — ( 0.7 ) ( 3.7 ) ( 0.4 ) ( 4.1 )

Balance, July 2, 2023

1,145.4 $ 1.1 $ 38.3 $ ( 7,610.5 ) $ ( 777.5 ) $ ( 8,348.6 ) $ 7.0 $ ( 8,341.6 )

21 unchanged sentences

Financial Statement Preparation

The unaudited consolidated financial statements as of March 31, 2024, and for the quarters and two quarters ended March 31, 2024 and April 2, 2023, 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 two quarters ended March 31, 2024 and April 2, 2023 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.

The unaudited consolidated financial statements as of June 30, 2024, and for the quarters and three quarters ended June 30, 2024 and July 2, 2023, 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 30, 2024 and July 2, 2023 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 is referred to as “Starbucks,” the “Company,” “we,” “us,” or “our.”

3 unchanged sentences

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 two quarters ended March 31, 2024 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending September 29, 2024 (“fiscal 2024”).

The results of operations for the quarter and three quarters ended June 30, 2024 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending September 29, 2024 (“fiscal 2024”).

Recent Accounting Pronouncements Not Yet Adopted

13 unchanged sentences

On April 4, 2024, the SEC determined to voluntarily stay the final rules pending certain legal challenges.

We are currently evaluating the impact of the new rules and expect to include updated climate-related disclosures in our Annual Report on Form 10-K for our fiscal year ending September 27, 2026, depending on the outcome of the legal challenges.

We are currently evaluating the impact of the new rules and continue to monitor the status of the related legal challenges.

Acquisitions, Divestitures, and Strategic Alliance

On January 13, 2023, we sold the assets, primarily consisting of intellectual properties associated with the Seattle’s Best Coffee brand, to Nestlé for $ 110.0 million.

The transaction resulted in a pre-tax gain of $ 91.3 million, which was included in gain from sale of assets on our consolidated statements of earnings for the quarter and two quarters ended April 2, 2023.

The transaction resulted in a pre-tax gain of $ 91.3 million, which was included in gain from sale of assets on our consolidated statements of earnings for the three quarters ended July 2, 2023.

Results from Seattle’s Best Coffee operations prior to the sale are reported in our Channel Development operating segment.

31 unchanged sentences

Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months Outstanding Contract/Debt Remaining Maturity

Mar 31, 2024 Oct 1, 2023

Jun 30, 2024 Oct 1, 2023

Cash Flow Hedges:

14 unchanged sentences

Location of gain/(loss)

Mar 31, 2024 Apr 2, 2023 Mar 31, 2024 Apr 2, 2023

Jun 30, 2024 Jul 2, 2023 Jun 30, 2024 Jul 2, 2023

Cash Flow Hedges:

10 unchanged sentences

Foreign currency debt — 53.4 — —

Two Quarters Ended

Three Quarters Ended

Gains/(Losses) Recognized in

1 unchanged sentence

AOCI to Earnings Location of gain/(loss)

Mar 31, 2024 Apr 2, 2023 Mar 31, 2024 Apr 2, 2023

Jun 30, 2024 Jul 2, 2023 Jun 30, 2024 Jul 2, 2023

Cash Flow Hedges:

14 unchanged sentences

Gains/(Losses) Recognized in Earnings

Location of gain/(loss) recognized in earnings Quarter Ended Two Quarters Ended

Mar 31, 2024 Apr 2, 2023 Mar 31, 2024 Apr 2, 2023

Location of gain/(loss) recognized in earnings Quarter Ended Three Quarters Ended

Jun 30, 2024 Jul 2, 2023 Jun 30, 2024 Jul 2, 2023

Non-Designated Derivatives:

Dairy Interest income and other, net $ — $ ( 0.1 ) $ — $ ( 0.1 )

Foreign currency - other Interest income and other, net 3.4 — 4.6 ( 10.0 )

6 unchanged sentences

Notional amounts of outstanding derivative contracts (in millions) :

Mar 31, 2024 Oct 1, 2023

Jun 30, 2024 Oct 1, 2023

Coffee $ 73 $ 266

5 unchanged sentences

Derivative Assets

Balance Sheet Location Mar 31, 2024 Oct 1, 2023

Balance Sheet Location Jun 30, 2024 Oct 1, 2023

Designated Derivative Instruments:

11 unchanged sentences

Derivative Liabilities

Balance Sheet Location Mar 31, 2024 Oct 1, 2023

Balance Sheet Location Jun 30, 2024 Oct 1, 2023

Designated Derivative Instruments:

10 unchanged sentences

Carrying amount of hedged item Cumulative amount of fair value hedging adjustment included in the carrying amount

Mar 31, 2024 Oct 1, 2023 Mar 31, 2024 Oct 1, 2023

Jun 30, 2024 Oct 1, 2023 Jun 30, 2024 Oct 1, 2023

Location on the balance sheet

6 unchanged sentences

Fair Value Measurements at Reporting Date Using

March 31, 2024 Quoted Prices in Active Markets for Identical Assets

June 30, 2024 Quoted Prices in Active Markets for Identical Assets

(Level 1) Significant Other Observable Inputs

65 unchanged sentences

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 March 31, 2024 and October 1, 2023.

Gross unrealized holding gains and losses on available-for-sale debt securities, structured deposits, and marketable equity securities were not material as of June 30, 2024 and October 1, 2023.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

2 unchanged sentences

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 two quarters ended March 31, 2024 and April 2, 2023.

There were no material fair value adjustments during the three quarters ended June 30, 2024 and July 2, 2023.

Inventories (in millions) :

Mar 31, 2024 Oct 1, 2023

Jun 30, 2024 Oct 1, 2023

Unroasted $ 746.9 $ 747.7

3 unchanged sentences

Total $ 1,854.7 $ 1,806.4

Other merchandise held for sale includes, among other items, serveware, food, and tea.

(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 March 31, 2024, we had committed to purchasing green coffee totaling $ 398.6 million under fixed-price contracts and an estimated $ 855.6 million under price-to-be-fixed contracts.

As of June 30, 2024, we had committed to purchasing green coffee totaling $ 168.5 million under fixed-price contracts and an estimated $ 863.2 million under price-to-be-fixed contracts.

A portion of our price-to-be-fixed contracts are effectively fixed through the use of futures.

7 unchanged sentences

Property, Plant and Equipment, net

Mar 31, 2024 Oct 1, 2023

Jun 30, 2024 Oct 1, 2023

Land $ 46.1 $ 46.1

9 unchanged sentences

Accrued Liabilities

Mar 31, 2024 Oct 1, 2023

Jun 30, 2024 Oct 1, 2023

Accrued occupancy costs $ 77.1 $ 86.7

6 unchanged sentences

Store Operating Expenses

Quarter Ended Two Quarters Ended

Mar 31, 2024 Apr 2, 2023 Mar 31, 2024 Apr 2, 2023

Quarter Ended Three Quarters Ended

Jun 30, 2024 Jul 2, 2023 Jun 30, 2024 Jul 2, 2023

Wages and benefits $ 2,215.7 $ 2,185.7 $ 6,564.4 $ 6,575.6

4 unchanged sentences

Indefinite-Lived Intangible Assets

(in millions) Mar 31, 2024 Oct 1, 2023

(in millions) Jun 30, 2024 Oct 1, 2023

Trade names, trademarks and patents $ 79.5 $ 79.4

Finite-Lived Intangible Assets

Mar 31, 2024 Oct 1, 2023

Jun 30, 2024 Oct 1, 2023

(in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount

5 unchanged sentences

Total finite-lived intangible assets $ 1,135.4 $ ( 1,109.2 ) $ 26.2 $ 1,149.3 $ ( 1,108.2 ) $ 41.1

Amortization expense for finite-lived intangible assets was $ 5.1 million and $ 10.2 million for the quarter and two quarters ended March 31, 2024, respectively, and $ 5.3 million and $ 10.9 million for the quarter and two quarters ended April 2, 2023, respectively.

Estimated future amortization expense as of March 31, 2024 ( in millions ):

Amortization expense for finite-lived intangible assets was $ 5.1 million and $ 15.3 million for the quarter and three quarters ended June 30, 2024, respectively, and $ 5.4 million and $ 16.4 million for the quarter and three quarters ended July 2, 2023, respectively.

Estimated future amortization expense as of June 30, 2024 ( in millions ):

Fiscal Year Total

2024 (excluding the two quarters ended March 31, 2024)

2024 (excluding the three quarters ended June 30, 2024)

Thereafter 2.2

5 unchanged sentences

( 0.4 ) ( 34.3 ) — — ( 34.7 )

Goodwill balance at March 31, 2024

Goodwill balance at June 30, 2024

$ 491.1 $ 2,656.8 $ 34.7 $ 1.0 $ 3,183.6

10 unchanged sentences

The 2021 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 March 31, 2024, we were in compliance with all applicable covenants.

No amounts were outstanding under our 2021 credit facility as of March 31, 2024 or October 1, 2023.

As of June 30, 2024, we were in compliance with all applicable covenants.

No amounts were outstanding under our 2021 credit facility as of June 30, 2024 or October 1, 2023.

Short-term Debt

2 unchanged sentences

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.

No amounts were outstanding under our commercial paper program as of March 31, 2024 and October 1, 2023.

No amounts were outstanding under our commercial paper program as of June 30, 2024 and October 1, 2023.

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

3 unchanged sentences

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 March 31, 2024, we had ¥ 5.0 billion, or $ 33.0 million, of borrowings outstanding under these credit facilities.

As of June 30, 2024, we had ¥ 2.0 billion, or $ 12.4 million, of borrowings outstanding under these credit facilities.

As of October 1, 2023, we had ¥ 5.0 billion, or $ 33.5 million, of borrowings outstanding under these credit facilities.

1 unchanged sentence

Components of long-term debt including the associated interest rates and related estimated fair values by calendar maturity ( in millions, except interest rates) :

Mar 31, 2024 Oct 1, 2023 Stated Interest Rate Effective Interest Rate (1)

Jun 30, 2024 Oct 1, 2023 Stated Interest Rate Effective Interest Rate (1)

Issuance Amount Estimated Fair Value Amount Estimated Fair Value

36 unchanged sentences

(4) Japanese yen-denominated long-term debt.

The following table summarizes our long-term debt maturities as of March 31, 2024 by fiscal year ( in millions ):

The following table summarizes our long-term debt maturities as of June 30, 2024 by fiscal year ( in millions ):

Fiscal Year Total

2 unchanged sentences

The components of lease costs (in millions) :

Quarter Ended Two Quarters Ended

Mar 31, 2024 Apr 2, 2023 Mar 31, 2024 Apr 2, 2023

Quarter Ended Three Quarters Ended

Jun 30, 2024 Jul 2, 2023 Jun 30, 2024 Jul 2, 2023

Operating lease costs (1)

5 unchanged sentences

The following table includes supplemental information (in millions) :

Two Quarters Ended

Mar 31, 2024 Apr 2, 2023

Three Quarters Ended

Jun 30, 2024 Jul 2, 2023

Cash paid related to operating lease liabilities $ 1,223.7 $ 1,234.8

Operating lease liabilities arising from obtaining right-of-use assets

Mar 31, 2024 Apr 2, 2023

1,548.7 1,245.5

Jun 30, 2024 Jul 2, 2023

Weighted-average remaining operating lease term 8.6 years 8.5 years

1 unchanged sentence

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 sheet.

There were no material finance leases as of March 31, 2024 and October 1, 2023.

There were no material finance leases as of June 30, 2024 and October 1, 2023.

Minimum future maturities of operating lease liabilities (in millions) :

Fiscal Year Total

2024 (excluding the two quarters ended March 31, 2024)

2024 (excluding the three quarters ended June 30, 2024)

Thereafter 4,959.3

2 unchanged sentences

Total $ 9,717.3

As of March 31, 2024, we have entered into operating leases that have not yet commenced of $ 1.6 billion, primarily related to real estate leases.

These leases will commence between fiscal year 2024 and fiscal year 2027 with lease terms ranging from two to twenty years.

As of June 30, 2024, we have entered into operating leases that have not yet commenced of $ 1.7 billion, primarily related to real estate leases.

These leases will commence between fiscal year 2024 and fiscal year 2028 with lease terms ranging from five years to twenty years.

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 March 31, 2024, the current and long-term deferred revenue related to the Nestlé up-front payment was $ 177.0 million and $ 5.9 billion, respectively.

As of June 30, 2024, the current and long-term deferred revenue related to the Nestlé up-front payment was $ 177.0 million and $ 5.9 billion, respectively.

As of October 1, 2023, the current and long-term deferred revenue related to the Nestlé up-front payment was $ 177.0 million and $ 6.0 billion, respectively.

During each of the quarters ended March 31, 2024 and April 2, 2023, we recognized $ 44.1 million of prepaid royalty revenue related to Nestlé.

During each of the two quarters ended March 31, 2024 and April 2, 2023, we recognized $ 88.2 million of prepaid royalty revenue related to Nestlé.

During each of the quarters ended June 30, 2024 and July 2, 2023, we recognized $ 44.1 million of prepaid royalty revenue related to Nestlé.

During each of the three quarters ended June 30, 2024 and July 2, 2023, 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 March 31, 2024

Stored value cards and loyalty program at December 31, 2023

Revenue deferred - card activations, card reloads and Stars earned 3,456.5

Revenue recognized - card and Stars redemptions and breakage ( 3,792.4 )

Quarter Ended June 30, 2024

Stored value cards and loyalty program at March 31, 2024

Quarter Ended April 2, 2023

Stored value cards and loyalty program at January 1, 2023

Revenue deferred - card activations, card reloads and Stars earned 3,833.4

Revenue recognized - card and Stars redemptions and breakage ( 3,870.2 )

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

Quarter Ended July 2, 2023

Stored value cards and loyalty program at April 2, 2023

Two Quarters Ended March 31, 2024

Revenue deferred - card activations, card reloads and Stars earned 3,641.3

Revenue recognized - card and Stars redemptions and breakage ( 3,662.9 )

Stored value cards and loyalty program at July 2, 2023 (2)

Three Quarters Ended June 30, 2024

Stored value cards and loyalty program at October 1, 2023

1 unchanged sentence

Revenue recognized - card and Stars redemptions and breakage ( 11,761.0 )

Stored value cards and loyalty program at March 31, 2024 (2)

Two Quarters Ended April 2, 2023

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

Three Quarters Ended July 2, 2023

Stored value cards and loyalty program at October 2, 2022

1 unchanged sentence

Revenue recognized - card and Stars redemptions and breakage ( 11,155.4 )

Stored value cards and loyalty program at April 2, 2023 (2)

Stored value cards and loyalty program at July 2, 2023 (2)

(1) “Other” primarily consists of changes in the stored value cards and loyalty program balances resulting from foreign currency translation.

(2) As of March 31, 2024 and April 2, 2023, approximately $ 1.7 billion and $ 1.6 billion, respectively, of these amounts were current.

(2) As of June 30, 2024 and July 2, 2023, approximately $ 1.6 billion and $ 1.5 billion, respectively, of these amounts were current.

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

March 31, 2024

June 30, 2024

Net gains/(losses) in AOCI, beginning of period $ ( 7.9 ) $ 40.6 $ 279.2 $ ( 933.4 ) $ ( 621.5 )

2 unchanged sentences

Other comprehensive income/(loss) attributable to Starbucks 1.0 30.0 74.6 ( 92.1 ) 13.5

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 )

April 2, 2023

Net gains/(losses) in AOCI, beginning of period $ ( 10.9 ) $ ( 88.1 ) $ 149.6 $ ( 572.2 ) $ ( 521.6 )

2 unchanged sentences

Other comprehensive income/(loss) attributable to Starbucks ( 1.5 ) ( 6.0 ) 69.7 ( 317.4 ) ( 255.2 )

Other comprehensive income/(loss) attributable to NCI — — — ( 0.7 ) ( 0.7 )

Net gains/(losses) in AOCI, end of period $ ( 12.4 ) $ ( 94.1 ) $ 219.3 $ ( 890.3 ) $ ( 777.5 )

Two Quarters Ended Available-for-Sale Debt Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total

March 31, 2024

Three Quarters Ended Available-for-Sale Debt Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total

June 30, 2024

Net gains/(losses) in AOCI, beginning of period $ ( 12.3 ) $ ( 47.5 ) $ 243.3 $ ( 961.7 ) $ ( 778.2 )

4 unchanged sentences

Net gains/(losses) in AOCI, end of period $ ( 6.9 ) $ 70.6 $ 353.8 $ ( 1,025.5 ) $ ( 608.0 )

April 2, 2023

Net gains/(losses) in AOCI, beginning of period $ ( 15.5 ) $ 199.0 $ 209.1 $ ( 855.8 ) $ ( 463.2 )

2 unchanged sentences

Other comprehensive income/(loss) attributable to Starbucks 3.1 ( 293.1 ) 10.2 ( 33.8 ) ( 313.6 )

Other comprehensive income/(loss) attributable to NCI — — — ( 0.7 ) ( 0.7 )

Net gains/(losses) in AOCI, end of period $ ( 12.4 ) $ ( 94.1 ) $ 219.3 $ ( 890.3 ) $ ( 777.5 )

3 unchanged sentences

the Statements of Earnings

Mar 31, 2024 Apr 2, 2023

Jun 30, 2024 Jul 2, 2023

Gains/(losses) on available-for-sale debt securities $ ( 0.3 ) $ ( 0.1 ) Interest income and other, net

1 unchanged sentence

Gains/(losses) on net investment hedges 14.2 7.8 Interest expense

Translation adjustment (1)

Other 0.1 — Interest income and other, net

14.2 16.5 Total before tax

1 unchanged sentence

$ 10.0 $ 12.4 Net of tax

Two Quarters Ended

Three Quarters Ended

Components Amounts Reclassified from AOCI Affected Line Item in

the Statements of Earnings

Mar 31, 2024 Apr 2, 2023

Jun 30, 2024 Jul 2, 2023

Gains/(losses) on available-for-sale debt securities $ ( 1.0 ) $ ( 0.5 ) Interest income and other, net

1 unchanged sentence

Gains/(losses) on net investment hedges 33.3 20.1 Interest expense

Translation adjustment (1)

Other 0.1 — Interest income and other, net

2.9 181.5 Total before tax

1 unchanged sentence

$ ( 3.5 ) $ 156.1 Net of tax

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 March 31, 2024.

During the two quarters ended March 31, 2024 and April 2, 2023, we repurchased 12.8 million and 4.9 million shares of common stock on the open market for $ 1,250.1 million and $ 495.3 million, respectively.

As of March 31, 2024, 29.8 million shares remained available for repurchase under current authorizations.

During the second quarter of fiscal 2024, our Board of Directors approved a quarterly cash dividend to shareholders of $ 0.57 per share to be paid on May 31, 2024 to shareholders of record as of the close of business on May 17, 2024.

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

During the three quarters ended June 30, 2024 and July 2, 2023, we repurchased 12.8 million and 6.9 million shares of common stock on the open market for $ 1,250.1 million and $ 699.3 million, respectively.

As of June 30, 2024, 29.8 million shares remained available for repurchase under current authorizations.

During the third quarter of fiscal 2024, our Board of Directors approved a quarterly cash dividend to shareholders of $0.57 per share to be paid on August 30, 2024 to shareholders of record as of the close of business on August 16, 2024.

Employee Stock Plans

As of March 31, 2024, there were 84.9 million shares of common stock available for issuance pursuant to future equity-based compensation awards and 10.0 million shares available for issuance under our employee stock purchase plan.

As of June 30, 2024, there were 84.9 million shares of common stock available for issuance pursuant to future equity-based compensation awards and 9.8 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 Two Quarters Ended

Mar 31, 2024 Apr 2, 2023 Mar 31, 2024 Apr 2, 2023

Quarter Ended Three Quarters Ended

Jun 30, 2024 Jul 2, 2023 Jun 30, 2024 Jul 2, 2023

Restricted Stock Units (“RSUs”) $ 63.7 $ 69.1 $ 236.9 $ 228.3

1 unchanged sentence

Total stock-based compensation expense $ 63.5 $ 69.2 $ 236.5 $ 228.5

Stock option and RSU transactions from October 1, 2023 through March 31, 2024 ( in millions ):

Stock option and RSU transactions from October 1, 2023 through June 30, 2024 ( in millions ):

Stock Options RSUs

3 unchanged sentences

Forfeited/expired — ( 0.7 )

Options outstanding/Nonvested RSUs, March 31, 2024

Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of March 31, 2024

Options outstanding/Nonvested RSUs, June 30, 2024

Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of June 30, 2024

Earnings per Share

Calculation of net earnings per common share (“EPS”) — basic and diluted ( in millions, except EPS ):

Quarter Ended Two Quarters Ended

Mar 31, 2024 Apr 2, 2023 Mar 31, 2024 Apr 2, 2023

Quarter Ended Three Quarters Ended

Jun 30, 2024 Jul 2, 2023 Jun 30, 2024 Jul 2, 2023

Net earnings attributable to Starbucks $ 1,054.8 $ 1,141.7 $ 2,851.7 $ 2,905.2

14 unchanged sentences

Consolidated revenue mix by product type ( in millions ):

Quarter Ended Two Quarters Ended

Mar 31, 2024 Apr 2, 2023 Mar 31, 2024 Apr 2, 2023

Quarter Ended Three Quarters Ended

Jun 30, 2024 Jul 2, 2023 Jun 30, 2024 Jul 2, 2023

$ 5,528.0 61 % $ 5,587.9 61 % $ 16,384.4 60 % $ 15,988.9 60 %

8 unchanged sentences

North America International Channel Development Corporate and Other Total

March 31, 2024

June 30, 2024

Total net revenues $ 6,816.7 $ 1,842.1 $ 438.3 $ 16.8 $ 9,113.9

2 unchanged sentences

Operating income/(loss) $ 1,432.7 $ 287.5 $ 235.2 $ ( 437.9 ) $ 1,517.5

April 2, 2023

Total net revenues $ 6,737.8 $ 1,972.9 $ 448.8 $ 8.8 $ 9,168.3

2 unchanged sentences

Operating income/(loss) $ 1,463.9 $ 374.5 $ 208.0 $ ( 462.5 ) $ 1,583.9

Two Quarters Ended

Three Quarters Ended

North America International Channel Development Corporate and Other Total

March 31, 2024

June 30, 2024

Total net revenues $ 20,317.6 $ 5,445.6 $ 1,304.5 $ 34.6 $ 27,102.3

2 unchanged sentences

Operating income/(loss) $ 4,101.8 $ 762.8 $ 661.2 $ ( 1,423.9 ) $ 4,101.9

April 2, 2023

Total net revenues $ 19,669.7 $ 5,507.8 $ 1,407.7 $ 16.8 $ 26,602.0

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements