What changed in this filing

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Item 1. Financial Statements

2025-01-28 compared with 2024-07-30 · 128 added, 235 removed, 586 unchanged (38% of the section changed)

3 unchanged sentences

(in millions, except per share data, unaudited)

Quarter Ended Three Quarters Ended

Quarter Ended

Net revenues:

8 unchanged sentences

General and administrative expenses 665.8 648.0

Restructuring and impairments — 7.1 — 21.8

Total operating expenses 8,322.6 7,995.8

Income from equity investees 46.5 55.9

Gain from sale of assets — — — 91.3

Operating income 1,121.7 1,485.4

15 unchanged sentences

(in millions, unaudited)

Quarter Ended Three Quarters Ended

Quarter Ended

Net earnings including noncontrolling interests $ 780.9 $ 1,024.4

8 unchanged sentences

Tax (expense)/benefit — ( 4.7 )

Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale debt securities, hedging instruments, and translation adjustment ( 14.2 ) ( 16.5 ) ( 2.9 ) ( 181.5 )

Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale securities, hedging instruments, translation adjustment, and other ( 66.9 ) 24.9

Tax expense/(benefit) 18.6 ( 1.8 )

1 unchanged sentence

Comprehensive income including noncontrolling interests 626.1 1,244.8

Comprehensive income attributable to noncontrolling interests 0.9 ( 0.5 ) 1.0 ( 0.5 )

Comprehensive income/(loss) attributable to noncontrolling interests

Comprehensive income attributable to Starbucks $ 626.3 $ 1,244.6

26 unchanged sentences

Stored value card liability and current portion of deferred revenue 2,253.3 1,781.2

Short-term debt 23.1 33.5

Current portion of long-term debt 1,249.2 1,248.9

20 unchanged sentences

(in millions, unaudited)

Three Quarters Ended

Quarter Ended

OPERATING ACTIVITIES:

3 unchanged sentences

Deferred income taxes, net ( 14.9 ) 26.1

Income earned from equity method investees ( 201.5 ) ( 182.7 )

Income earned from equity method investees, net ( 53.1 ) ( 59.0 )

Distributions received from equity method investees 81.9 105.2

Gain on sale of assets — ( 91.3 )

Stock-based compensation 100.6 94.8

13 unchanged sentences

Purchases of investments ( 66.3 ) ( 217.1 )

Sales of investments 0.5 2.0

Maturities and calls of investments 87.6 253.5

Additions to property, plant and equipment ( 692.9 ) ( 595.9 )

Proceeds from sale of assets — 110.0

Acquisitions, net of cash acquired ( 177.1 ) —

Other ( 6.5 ) ( 9.3 )

4 unchanged sentences

Repayments of short-term debt ( 5.4 ) ( 33.8 )

Net proceeds from issuance of long-term debt 1,995.3 1,497.8

Repayments of long-term debt — ( 750.0 )

3 unchanged sentences

Minimum tax withholdings on share-based awards ( 74.6 ) ( 92.1 )

Other ( 10.6 ) ( 11.0 )

Net cash used in financing activities ( 754.8 ) ( 2,409.3 )

11 unchanged sentences

CONSOLIDATED STATEMENTS OF EQUITY

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

For the Quarter Ended December 29, 2024 and December 31, 2023

(in millions, except per share data, unaudited)

6 unchanged sentences

Shares Amount

Balance, March 31, 2024

Balance, September 29, 2024

1,133.5 $ 1.1 $ 322.6 $ ( 7,343.8 ) $ ( 428.8 ) $ ( 7,448.9 ) $ 7.3 $ ( 7,441.6 )

4 unchanged sentences

Sale of common stock 0.2 — 13.2 — — 13.2 — 13.2

Repurchase of common stock (1)

— — 0.3 — — 0.3 — 0.3

Cash dividends declared, $ 0.61 per share

1 unchanged sentence

— — — — ( 0.3 ) ( 0.3 ) — ( 0.3 )

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, April 2, 2023

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

Net earnings — — — 1,141.7 — 1,141.7 0.2 1,141.9

Other comprehensive income — — — — ( 255.2 ) ( 255.2 ) ( 0.7 ) ( 255.9 )

Stock-based compensation expense — — 69.9 — — 69.9 — 69.9

Exercise of stock options/vesting of RSUs 0.3 — 1.6 — — 1.6 — 1.6

Sale of common stock 0.1 — 12.4 — — 12.4 — 12.4

Repurchase of common stock ( 2.0 ) — ( 83.8 ) ( 121.1 ) — ( 204.9 ) — ( 204.9 )

Cash dividends declared, $0.53 per share

— — — ( 606.5 ) — ( 606.5 ) — ( 606.5 )

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

Balance, July 2, 2023

Balance, December 29, 2024

1,135.8 $ 1.1 $ 367.2 $ ( 7,256.4 ) $ ( 583.6 ) $ ( 7,471.7 ) $ 7.1 $ ( 7,464.6 )

(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 30, 2024 and July 2, 2023

(in millions, except per share data, unaudited)

Common Stock Additional Paid-in Capital Retained

Earnings/(Deficit) Accumulated

Comprehensive

Income/(Loss) Shareholders’

Equity/(Deficit) Noncontrolling

Interests Total

Shares Amount

Balance, October 1, 2023

9 unchanged sentences

— — — ( 642.1 ) — ( 642.1 ) — ( 642.1 )

Balance, June 30, 2024

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

Balance, October 2, 2022

1,147.9 $ 1.1 $ 205.3 $ ( 8,449.8 ) $ ( 463.2 ) $ ( 8,706.6 ) $ 7.9 $ ( 8,698.7 )

Net earnings — — — 2,905.2 — 2,905.2 0.2 2,905.4

Other comprehensive loss — — — — ( 313.6 ) ( 313.6 ) ( 0.7 ) ( 314.3 )

Stock-based compensation expense — — 231.3 — — 231.3 — 231.3

Exercise of stock options/vesting of RSUs 4.0 — 25.1 — — 25.1 — 25.1

Sale of common stock 0.4 — 37.3 — — 37.3 — 37.3

Repurchase of common stock ( 6.9 ) — ( 457.7 ) ( 242.5 ) — ( 700.2 ) — ( 700.2 )

Cash dividends declared, $1.59 per share

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

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

Balance, July 2, 2023

Other — — — — 0.2 0.2 ( 0.1 ) 0.1

Balance, December 31, 2023

1,132.2 $ 1.1 $ 38.2 $ ( 8,097.5 ) $ ( 557.8 ) $ ( 8,616.0 ) $ 7.1 $ ( 8,608.9 )

21 unchanged sentences

Financial Statement Preparation

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.”

Segment information is prepared on the same basis that our management reviews financial information for operational decision-making purposes.

Certain prior period information on the consolidated statements of cash flows have been reclassified to conform to the current presentation.

The financial information as of October 1, 2023 is derived from our audited consolidated financial statements and notes for the fiscal year ended October 1, 2023 (“fiscal 2023”) included in Item 8 in the fiscal 2023 Annual Report on Form 10-K (“10-K”).

The unaudited consolidated financial statements as of December 29, 2024, and for the quarters ended December 29, 2024 and December 31, 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 ended December 29, 2024 and December 31, 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 (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 ceo, 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 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”).

The results of operations for the quarter ended December 29, 2024 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 require disclosure on how management uses reported measures to assess segment performance.

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 expect to adopt the guidance for the fiscal year ending September 28, 2025.

We are currently evaluating the expanded disclosure requirements and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

We are currently evaluating the expanded disclosure requirements and do not expect the adoption of this guidance to have a significant impact on our consolidated financial statement disclosures.

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, specific disclosures related to unrecognized tax benefits and indefinite reinvestment assertions were removed.

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.

2 unchanged sentences

The rules require disclosure in the audited financial statements of certain effects of severe weather events and other natural conditions above certain financial thresholds, as well as amounts related to carbon offsets and renewable energy credits or certificates, if material.

Disclosure requirements will begin phasing in for fiscal years beginning on or after January 1, 2025.

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

Under the rules as originally issued, disclosure requirements begin phasing in for fiscal years beginning on or after January 1, 2025.

However, 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 continue to monitor the status of the related legal challenges.

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.

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 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.

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

In addition, we assumed various liabilities, primarily consisting of operating lease liabilities.

The transaction is not material to our consolidated financial statements.

Derivative Financial Instruments

8 unchanged sentences

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 payments, inventory purchases, and intercompany borrowing and lending activities.

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.

12 unchanged sentences

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 other designated cash flow hedges are probable to occur.

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.

4 unchanged sentences

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

Jun 30, 2024 Oct 1, 2023

Dec 29, 2024 Sep 29, 2024

Cash Flow Hedges:

14 unchanged sentences

Location of gain/(loss)

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

Cash Flow Hedges:

Coffee $ 10.6 $ ( 20.0 ) $ ( 10.7 ) $ 0.3 Product and distribution costs

Cross-currency swaps 2.3 4.2 0.3 ( 3.5 ) Interest expense

1.8 7.5 Interest income and other, net

Dairy 1.6 ( 6.1 ) ( 0.6 ) ( 3.8 ) Product and distribution costs

Foreign currency - other 23.9 26.5 8.3 6.1 Licensed stores revenue

2.1 1.4 Product and distribution costs

Interest rates — — ( 1.0 ) 0.8 Interest expense

Net Investment Hedges:

Cross-currency swaps (1)

114.0 47.6 14.2 7.8 Interest expense

Foreign currency debt — 53.4 — —

Three Quarters Ended

Gains/(Losses) Recognized in

OCI Before Reclassifications Gains/(Losses) Reclassified from

AOCI to Earnings Location of gain/(loss)

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

Dec 29, 2024 Dec 31, 2023 Dec 29, 2024 Dec 31, 2023

Cash Flow Hedges:

5 unchanged sentences

1.7 2.8 Product and distribution costs

— 0.2 Interest income and other, net

Interest rates — — ( 1.0 ) ( 1.0 ) Interest expense

6 unchanged sentences

Gains/(Losses) Recognized in Earnings

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

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

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

Dec 29, 2024 Dec 31, 2023

Non-Designated Derivatives:

1 unchanged sentence

Foreign currency - other Interest income and other, net 8.9 ( 2.4 )

Coffee Interest income and other, net — — — ( 5.5 )

Diesel fuel and other commodities Interest income and other, net ( 0.1 ) ( 0.7 )

4 unchanged sentences

Notional amounts of outstanding derivative contracts (in millions) :

Jun 30, 2024 Oct 1, 2023

Dec 29, 2024 Sep 29, 2024

Coffee $ 28 $ 154

5 unchanged sentences

Derivative Assets

Balance Sheet Location Jun 30, 2024 Oct 1, 2023

Balance Sheet Location Dec 29, 2024 Sep 29, 2024

Designated Derivative Instruments (1) :

4 unchanged sentences

Other long-term assets 19.9 1.7

Interest rate swaps

Prepaid expenses and other current assets

Non-designated Derivative Instruments:

Dairy Prepaid expenses and other current assets 0.1 0.3

Diesel fuel and other commodities Prepaid expenses and other current assets 0.1 0.7

Foreign currency Prepaid expenses and other current assets 1.9 1.8

Derivative Liabilities

Balance Sheet Location Jun 30, 2024 Oct 1, 2023

Balance Sheet Location Dec 29, 2024 Sep 29, 2024

Designated Derivative Instruments:

Cross-currency swaps Accrued liabilities $ — $ 21.7

Other long-term liabilities — 33.3

Dairy Accrued liabilities 0.1 —

7 unchanged sentences

Other long-term liabilities — 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 30, 2024 Oct 1, 2023 Jun 30, 2024 Oct 1, 2023

Dec 29, 2024 Sep 29, 2024 Dec 29, 2024 Sep 29, 2024

Location on the balance sheet

Long-term debt $ 321.6 $ 332.2 $ ( 28.4 ) $ ( 17.8 )

$ 319.0 $ 1,060.0 $ ( 31.0 ) $ ( 40.0 )

(1) Balance as of October 1, 2023 includes $750.0 million in senior notes that matured on October 1, 2023 but remained in current portion of long-term debt on the consolidated balance sheet as the debt repayment was not made until the first day of fiscal 2024.

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.

2 unchanged sentences

Fair Value Measurements at Reporting Date Using

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

December 29, 2024 Quoted Prices in Active Markets for Identical Assets

(Level 1) Significant Other Observable Inputs

21 unchanged sentences

Total available-for-sale debt securities 227.3 39.7 163.2 24.4

Structured deposits 0.2 — 0.2 —

Total long-term investments 227.3 39.7 163.2 24.4

8 unchanged sentences

Fair Value Measurements at Reporting Date Using

October 1, 2023 Quoted Prices in Active Markets for Identical Assets

September 29, 2024 Quoted Prices in Active Markets for Identical Assets

(Level 1) Significant Other Observable Inputs

5 unchanged sentences

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 —

government treasury securities 36.9 36.9 — —

Foreign government obligations 3.9 — 3.9 —

Total available-for-sale debt securities 90.7 36.9 53.8 —

10 unchanged sentences

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

9 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 June 30, 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 December 29, 2024 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, ROU assets, goodwill and other intangible assets, equity and other investments, and other assets.

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 30, 2024 and July 2, 2023.

There were no material fair value adjustments during the quarter ended December 29, 2024 and December 31, 2023.

Inventories (in millions) :

Jun 30, 2024 Oct 1, 2023

Dec 29, 2024 Sep 29, 2024

Unroasted $ 748.1 $ 665.1

3 unchanged sentences

Total $ 1,731.6 $ 1,777.3

(1) “Other merchandise held for sale” includes, among other items, food, serveware, and tea.

(1) “Other merchandise held for sale” includes, among other items, serveware, food, and tea.

Inventory levels vary due to seasonality, commodity market supply, and price fluctuations.

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.

As of December 29, 2024, we had committed to purchasing green coffee totaling $ 311 million under fixed-price contracts and an estimated $ 845 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

Jun 30, 2024 Oct 1, 2023

Dec 29, 2024 Sep 29, 2024

Land $ 56.8 $ 56.9

3 unchanged sentences

Roasting equipment 862.1 865.7

Capitalized software 1,076.4 1,049.7

Furniture, fixtures and other 748.4 775.5

4 unchanged sentences

Accrued Liabilities

Jun 30, 2024 Oct 1, 2023

Dec 29, 2024 Sep 29, 2024

Accrued occupancy costs $ 77.5 $ 81.7

6 unchanged sentences

Store Operating Expenses

Quarter Ended Three Quarters Ended

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

Quarter Ended

Dec 29, 2024 Dec 31, 2023

Wages and benefits $ 2,389.1 $ 2,209.3

4 unchanged sentences

Indefinite-Lived Intangible Assets

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

(in millions) Dec 29, 2024 Sep 29, 2024

Trade names, trademarks and patents $ 79.5 $ 79.5

Finite-Lived Intangible Assets

Jun 30, 2024 Oct 1, 2023

Dec 29, 2024 Sep 29, 2024

(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 $ 1,211.3 $ ( 1,120.3 ) $ 91.0 $ 1,187.8 $ ( 1,166.4 ) $ 21.4

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 ):

Amortization expense for finite-lived intangible assets was $ 5.6 million for the quarter ended December 29, 2024 and $ 5.1 million for the quarter ended December 31, 2023.

Estimated future amortization expense as of December 29, 2024 ( in millions ):

Fiscal Year Total

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

2025 (excluding the quarter ended December 29, 2024)

Thereafter 58.9

2 unchanged sentences

North America International Channel Development Corporate and Other Total

Goodwill balance at October 1, 2023

Goodwill balance at September 29, 2024

$ 491.5 $ 2,788.5 $ 34.7 $ 1.0 $ 3,315.7

Acquisition (1)

— 108.1 — — 108.1

Goodwill balance at June 30, 2024

( 1.8 ) ( 134.1 ) — — ( 135.9 )

Goodwill balance at December 29, 2024

$ 489.7 $ 2,762.5 $ 34.7 $ 1.0 $ 3,287.9

(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.

9 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 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.

As of December 29, 2024, we were in compliance with all applicable covenants.

No amounts were outstanding under our 2021 credit facility as of December 29, 2024 or September 29, 2024.

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 June 30, 2024 and October 1, 2023.

We had no borrowings outstanding under our commercial paper program as of December 29, 2024 and September 29, 2024.

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 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.

As of December 29, 2024 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 30, 2024 Oct 1, 2023 Stated Interest Rate Effective Interest Rate (1)

Dec 29, 2024 Sep 29, 2024 Stated Interest Rate Effective Interest Rate (1)

Issuance Amount Estimated Fair Value Amount Estimated Fair Value

October 2023 notes (2)

$ — $ — $ 750.0 $ 749.9 3.850 % 2.859 %

February 2024 notes (3)

— — 500.0 504.2 5.848 % 6.079 %

March 2024 notes (4)

— — 569.3 569.3 0.372 % 0.462 %

August 2025 notes $ 1,250.0 $ 1,243.9 $ 1,250.0 $ 1,243.4 3.800 % 3.721 %

25 unchanged sentences

(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 our October 2023 notes and $ 350.0 million of our August 2029 notes.

(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.

(3) Floating rate notes that bear interest at a rate equal to Compounded SOFR (as defined in the February 2024 notes) plus 0.420 %, resulting in a stated interest rate of 5.848 % at maturity on February 14, 2024.

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

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

The following table summarizes our long-term debt maturities as of December 29, 2024 by fiscal year ( in millions ):

Fiscal Year Total

2025 $ 1,250.0

Thereafter 9,100.0

1 unchanged sentence

The components of lease costs (in millions) :

Quarter Ended Three Quarters Ended

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

Quarter Ended

Dec 29, 2024 Dec 31, 2023

Operating lease costs (1)

5 unchanged sentences

The following table includes supplemental information (in millions) :

Three Quarters Ended

Jun 30, 2024 Jul 2, 2023

Quarter Ended

Dec 29, 2024 Dec 31, 2023

Cash paid related to operating lease liabilities $ 468.4 $ 428.6

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

1,548.7 1,245.5

Jun 30, 2024 Jul 2, 2023

Dec 29, 2024 Dec 31, 2023

Weighted-average remaining operating lease term 8.6 years 8.6 years

Weighted-average operating lease discount rate 3.5 % 3.1 %

(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 sheet.

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

These balances were not material as of December 29, 2024 and September 29, 2024.

Finance lease costs were also immaterial for the quarters ended December 29, 2024 and December 31, 2023.

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

Fiscal Year Total

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

2025 (excluding the quarter ended December 29, 2024)

Thereafter 4,852.8

2 unchanged sentences

Total $ 10,310.1

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.

As of December 29, 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 2025 and fiscal year 2029 with lease terms ranging from five years to twenty years.

1 unchanged sentence

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 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 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.

As of December 29, 2024 and 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 December 29, 2024 and December 31, 2023, we recognized $ 44.1 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 30, 2024

Stored value cards and loyalty program at March 31, 2024

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

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

Quarter Ended December 29, 2024

Stored value cards and loyalty program at September 29, 2024

Revenue deferred - card activations, card reloads and Stars earned 4,414.4

Revenue recognized - card and Stars redemptions and breakage ( 3,892.9 )

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

Three Quarters Ended July 2, 2023

Stored value cards and loyalty program at December 29, 2024 (2)

Quarter Ended December 31, 2023

Stored value cards and loyalty program at October 1, 2023

1 unchanged sentence

Revenue recognized - card and Stars redemptions and breakage ( 4,098.4 )

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

Stored value cards and loyalty program at December 31, 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 June 30, 2024 and July 2, 2023, approximately $ 1.6 billion and $ 1.5 billion, respectively, of these amounts were current.

(2) As of December 29, 2024 and December 31, 2023, approximately $ 2.1 billion and $ 2.0 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

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 )

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

Net gains/(losses) recognized in OCI before reclassifications ( 1.7 ) 0.8 75.5 ( 317.4 ) ( 242.8 )

Net (gains)/losses reclassified from AOCI to earnings 0.2 ( 6.8 ) ( 5.8 ) — ( 12.4 )

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 )

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

June 30, 2024

December 29, 2024

Net gains/(losses) in AOCI, beginning of period $ ( 2.3 ) $ 70.5 $ 247.7 $ ( 744.7 ) $ ( 428.8 )

4 unchanged sentences

Net gains/(losses) in AOCI, end of period $ ( 3.7 ) $ 94.2 $ 382.1 $ ( 1,056.2 ) $ ( 583.6 )

December 31, 2023

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

8 unchanged sentences

the Statements of Earnings

Jun 30, 2024 Jul 2, 2023

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

Gains/(losses) on cash flow hedges 0.2 8.8 Please refer to Note 3 , Derivative Financial Instruments for additional information.

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

( 4.2 ) ( 4.1 ) Tax expense

$ 10.0 $ 12.4 Net of tax

Three Quarters Ended

Components Amounts Reclassified from AOCI Affected Line Item in

the Statements of Earnings

Jun 30, 2024 Jul 2, 2023

Dec 29, 2024 Dec 31, 2023

Gains/(losses) on available-for-sale debt securities $ ( 0.2 ) $ ( 0.3 ) Interest income and other, net

1 unchanged sentence

Gains/(losses) on net investment hedges 27.7 8.9 Interest expense

Translation adjustment (1)

Other 0.1 — Interest income and other, net

66.9 ( 24.9 ) Total before tax

( 6.4 ) ( 25.4 ) Tax expense

( 18.6 ) 1.8 Tax (expense)/benefit

$ 48.3 $ ( 23.1 ) Net of tax

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

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 30, 2024.

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.

During the quarter ended December 29, 2024, we made no share repurchases.

During the quarter ended December 31, 2023, we repurchased 12.8 million shares of common stock on the open market for $ 1,250.1 million.

As of December 29, 2024, 29.8 million shares remained available for repurchase under current authorizations.

During the first quarter of fiscal 2025, our Board of Directors approved a quarterly cash dividend to shareholders of $ 0.61 per share to be paid on February 28, 2025 to shareholders of record as of the close of business on February 14, 2025.

Employee Stock Plans

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.

As of December 29, 2024, there wer e 75.3 million s hares of common stock available for issuance pursuant to future equity-based compensation awards an d 9.5 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 30, 2024 Jul 2, 2023 Jun 30, 2024 Jul 2, 2023

Quarter Ended

Dec 29, 2024 Dec 31, 2023

Restricted Stock Units (“RSUs”) $ 100.6 $ 94.8

Options ( 0.2 ) 0.1 ( 0.4 ) 0.2

Total stock-based compensation expense $ 100.6 $ 94.8

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

Stock option and RSU transactions from September 29, 2024 through December 29, 2024 ( in millions ):

Stock Options RSUs

Options outstanding/Nonvested RSUs, October 1, 2023

Options outstanding/Nonvested RSUs, September 29, 2024

Granted — 4.1

1 unchanged sentence

Forfeited/expired — ( 0.4 )

Options outstanding/Nonvested RSUs, June 30, 2024

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

Options outstanding/Nonvested RSUs, December 29, 2024

Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of December 29, 2024

Earnings per Share

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

Quarter Ended Three Quarters Ended

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

Quarter Ended

Dec 29, 2024 Dec 31, 2023

Net earnings attributable to Starbucks $ 780.8 $ 1,024.4

14 unchanged sentences

Consolidated revenue mix by product type ( in millions ):

Quarter Ended Three Quarters Ended

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

Quarter Ended

Dec 29, 2024 Dec 31, 2023

$ 5,678.0 60 % $ 5,695.9 60 %

8 unchanged sentences

North America International Channel Development Corporate and Other Total

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 from equity investees — 2.5 71.4 — 73.9

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

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

Depreciation and amortization expenses 230.4 83.1 0.0 28.7 342.2

Income from equity investees — 0.8 68.9 — 69.7

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

Three Quarters Ended

North America International Channel Development Corporate and Other Total

June 30, 2024

December 29, 2024

Total net revenues $ 7,071.9 $ 1,871.3 $ 436.3 $ 18.3 $ 9,397.8

Depreciation and amortization expenses 289.0 89.1 0.0 29.5 407.6

Income from equity investees — 2.9 194.9 — 197.8

Income/(loss) from equity investees

— ( 0.4 ) 46.9 — 46.5

Operating income/(loss) $ 1,181.3 $ 237.1 $ 208.0 $ ( 504.7 ) $ 1,121.7

December 31, 2023

Total net revenues $ 7,120.7 $ 1,846.3 $ 448.0 $ 10.3 $ 9,425.3

Depreciation and amortization expenses 250.4 84.1 — 30.8 365.3

Income from equity investees — 2.0 177.0 — 179.0

Income/(loss) from equity investees

— 0.2 55.7 — 55.9

Operating income/(loss) $ 1,520.8 $ 241.5 $ 209.7 $ ( 486.6 ) $ 1,485.4

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