What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-04-29 compared with 2025-01-28 · 201 added, 91 removed, 623 unchanged (32% of the section changed)

3 unchanged sentences

(in millions, except per share data, unaudited)

Quarter Ended

Quarter Ended Two Quarters Ended

Net revenues:

8 unchanged sentences

General and administrative expenses 632.3 654.6 1,298.0 1,302.6

Restructuring 116.2 — 116.2 —

Total operating expenses 8,219.7 7,532.1 16,542.1 15,527.8

6 unchanged sentences

Net earnings including noncontrolling interests 384.1 772.5 1,165.1 1,796.9

Net earnings attributable to noncontrolling interests 0.1 0.0

Net earnings/(loss) attributable to noncontrolling interests

( 0.1 ) 0.1 0.1 0.1

Net earnings attributable to Starbucks $ 384.2 $ 772.4 $ 1,165.0 $ 1,796.8

8 unchanged sentences

(in millions, unaudited)

Quarter Ended

Quarter Ended Two Quarters Ended

Net earnings including noncontrolling interests $ 384.1 $ 772.5 $ 1,165.1 $ 1,796.9

13 unchanged sentences

Comprehensive income/(loss) attributable to noncontrolling interests

( 0.1 ) — ( 0.2 ) 0.2

Comprehensive income attributable to Starbucks $ 438.8 $ 708.8 $ 1,065.1 $ 1,953.4

48 unchanged sentences

(in millions, unaudited)

Quarter Ended

Two Quarters Ended

OPERATING ACTIVITIES:

20 unchanged sentences

Purchases of investments ( 169.4 ) ( 472.0 )

Sales of investments — 0.5

Maturities and calls of investments 141.0 498.7

4 unchanged sentences

FINANCING ACTIVITIES:

Net (payments)/proceeds from issuance of commercial paper — 300.0

Net proceeds from issuance of short-term debt 1.1 93.2

Repayments of short-term debt ( 5.4 ) ( 80.5 )

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

Repayments of long-term debt — ( 1,825.1 )

3 unchanged sentences

Minimum tax withholdings on share-based awards ( 76.5 ) ( 94.1 )

Other — ( 10.6 )

Net cash used in financing activities ( 1,421.3 ) ( 2,423.6 )

11 unchanged sentences

CONSOLIDATED STATEMENTS OF EQUITY

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

For the Quarter Ended March 30, 2025 and March 31, 2024

(in millions, except per share data, unaudited)

6 unchanged sentences

Shares Amount

Balance, September 29, 2024

Balance, December 29, 2024

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

Net earnings — — — 384.2 — 384.2 ( 0.1 ) 384.1

Other comprehensive loss — — — — ( 154.5 ) ( 154.5 ) ( 0.3 ) ( 154.8 )

Other comprehensive income — — — — 54.6 54.6 — 54.6

Stock-based compensation expense — — 78.3 — — 78.3 — 78.3

4 unchanged sentences

— — — — — — 0.1 0.1

Balance, March 30, 2025

1,136.2 $ 1.1 $ 470.9 $ ( 7,565.5 ) $ ( 529.0 ) $ ( 7,622.5 ) $ 7.1 $ ( 7,615.4 )

Balance, December 31, 2023

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

Net earnings — — — 772.4 — 772.4 0.1 772.5

Other comprehensive loss — — — — ( 63.6 ) ( 63.6 ) ( 0.1 ) ( 63.7 )

Stock-based compensation expense — — 79.1 — — 79.1 — 79.1

Exercise of stock options/vesting of RSUs 0.3 — 10.9 — — 10.9 — 10.9

Sale of common stock 0.2 — 13.0 — — 13.0 — 13.0

Repurchase of common stock (1)

— — 0.5 0.1 — 0.6 — 0.6

Cash dividends declared, $ 0.57 per share

— — — ( 645.7 ) — ( 645.7 ) — ( 645.7 )

Other — — — — ( 0.1 ) ( 0.1 ) 0.1 —

Balance, March 31, 2024

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

(1) Includes excise tax on share repurchases.

See Notes to Consolidated Financial Statements.

STARBUCKS CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY

For the Two Quarters Ended March 30, 2025 and March 31, 2024

(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, 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 — — — 1,165.0 1,165.0 0.1 1,165.1

Other comprehensive loss — — — — ( 99.9 ) ( 99.9 ) ( 0.3 ) ( 100.2 )

Stock-based compensation expense — — 180.4 — — 180.4 — 180.4

Exercise of stock options/vesting of RSUs 2.4 — ( 59.0 ) — — ( 59.0 ) — ( 59.0 )

Sale of common stock 0.3 — 26.9 — — 26.9 — 26.9

Cash dividends declared, $ 1.22 per share

— — — ( 1,386.7 ) — ( 1,386.7 ) — ( 1,386.7 )

Other — — — — ( 0.3 ) ( 0.3 ) — ( 0.3 )

Balance, March 30, 2025

1,136.2 $ 1.1 $ 470.9 $ ( 7,565.5 ) $ ( 529.0 ) $ ( 7,622.5 ) $ 7.1 $ ( 7,615.4 )

Balance, October 1, 2023

10 unchanged sentences

Other — — — — 0.1 0.1 — 0.1

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 )

17 unchanged sentences

Note 15 Segment Reporting

Note 16 Restructuring

STARBUCKS CORPORATION

2 unchanged sentences

Financial Statement Preparation

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.

The unaudited consolidated financial statements as of March 30, 2025, and for the quarters and two quarters ended March 30, 2025 and March 31, 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 two quarters ended March 30, 2025 and March 31, 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 ceo, who is our Chief Operating Decision Maker, manages the segments, evaluates financial results, and makes key operating decisions.

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 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”).

The results of operations for the quarter and two quarters ended March 30, 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

2 unchanged sentences

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 significant impact on our consolidated financial statement disclosures.

We will adopt the guidance for the fiscal year ending September 28, 2025 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.

3 unchanged sentences

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 March 2024, the SEC issued its final climate disclosure rules, which require the disclosure of climate-related information in annual reports and registration statements.

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.

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.

8 unchanged sentences

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

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.

32 unchanged sentences

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

Dec 29, 2024 Sep 29, 2024

Mar 30, 2025 Sep 29, 2024

Cash Flow Hedges:

14 unchanged sentences

Location of gain/(loss)

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

Mar 30, 2025 Mar 31, 2024 Mar 30, 2025 Mar 31, 2024

Cash Flow Hedges:

10 unchanged sentences

Foreign currency debt — 25.5 — —

Two Quarters Ended

Gains/(Losses) Recognized in

OCI Before Reclassifications Gains/(Losses) Reclassified from

AOCI to Earnings Location of gain/(loss)

Mar 30, 2025 Mar 31, 2024 Mar 30, 2025 Mar 31, 2024

Cash Flow Hedges:

Coffee $ 13.4 $ 63.1 $ 45.1 $ ( 46.6 ) Product and distribution costs

Cross-currency swaps 0.9 2.4 — 1.0 Interest expense

1.4 0.6 Interest income and other, net

Dairy ( 1.3 ) ( 3.2 ) 1.4 ( 3.9 ) Product and distribution costs

Foreign currency - other 50.0 9.5 16.2 16.2 Licensed stores revenue

4.3 5.0 Product and distribution costs

Interest rates — — ( 2.0 ) ( 2.0 ) Interest expense

Net Investment Hedges:

Cross-currency swaps (1)

220.6 73.6 55.4 19.1 Interest expense

Foreign currency debt — ( 6.3 ) — —

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

1 unchanged sentence

Gains/(Losses) Recognized in Earnings

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

Dec 29, 2024 Dec 31, 2023

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

Mar 30, 2025 Mar 31, 2024 Mar 30, 2025 Mar 31, 2024

Non-Designated Derivatives:

7 unchanged sentences

Notional amounts of outstanding derivative contracts (in millions) :

Dec 29, 2024 Sep 29, 2024

Mar 30, 2025 Sep 29, 2024

Coffee $ 200 $ 154

5 unchanged sentences

Derivative Assets

Balance Sheet Location Dec 29, 2024 Sep 29, 2024

Balance Sheet Location Mar 30, 2025 Sep 29, 2024

Designated Derivative Instruments (1) :

6 unchanged sentences

Dairy Prepaid expenses and other current assets — 0.3

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

Foreign currency Prepaid expenses and other current assets 1.1 1.8

Derivative Liabilities

Balance Sheet Location Dec 29, 2024 Sep 29, 2024

Balance Sheet Location Mar 30, 2025 Sep 29, 2024

Designated Derivative Instruments:

6 unchanged sentences

Non-designated Derivative Instruments:

Dairy Accrued liabilities 0.1 —

Diesel fuel and other commodities Accrued liabilities 0.3 0.3

4 unchanged sentences

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

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

Mar 30, 2025 Sep 29, 2024 Mar 30, 2025 Sep 29, 2024

Location on the balance sheet

4 unchanged sentences

Fair Value Measurements at Reporting Date Using

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

March 30, 2025 Quoted Prices in Active Markets for Identical Assets

(Level 1) Significant Other Observable Inputs

4 unchanged sentences

Corporate debt securities 82.4 — 71.0 11.4

Foreign corporate bonds

Mortgage and other asset-backed securities 0.3 — 0.3 —

State and local government obligations 1.5 — 1.5 —

government treasury securities 81.3 81.3 — —

59 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 December 29, 2024 and September 29, 2024.

Gross unrealized holding gains and losses on available-for-sale debt securities, structured deposits, and marketable equity securities were not material as of March 30, 2025 and September 29, 2024.

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 quarter ended December 29, 2024 and December 31, 2023.

There were no material fair value adjustments during the two quarters ended March 30, 2025 and March 31, 2024.

Inventories (in millions) :

Dec 29, 2024 Sep 29, 2024

Mar 30, 2025 Sep 29, 2024

Unroasted $ 950.4 $ 665.1

5 unchanged sentences

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

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.

As of March 30, 2025, we had committed to purchasing green coffee totaling $ 213 million under fixed-price contracts and an estimated $ 951 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

Dec 29, 2024 Sep 29, 2024

Mar 30, 2025 Sep 29, 2024

Land $ 56.9 $ 56.9

10 unchanged sentences

Accrued Liabilities

Dec 29, 2024 Sep 29, 2024

Mar 30, 2025 Sep 29, 2024

Accrued occupancy costs $ 81.7 $ 81.7

6 unchanged sentences

Store Operating Expenses

Quarter Ended

Dec 29, 2024 Dec 31, 2023

Quarter Ended Two Quarters Ended

Mar 30, 2025 Mar 31, 2024 Mar 30, 2025 Mar 31, 2024

Wages and benefits $ 2,406.1 $ 2,139.4 $ 4,795.2 $ 4,348.7

4 unchanged sentences

Indefinite-Lived Intangible Assets

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

(in millions) Mar 30, 2025 Sep 29, 2024

Trade names, trademarks and patents $ 79.5 $ 79.5

Finite-Lived Intangible Assets

Dec 29, 2024 Sep 29, 2024

Mar 30, 2025 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 $ 1,229.9 $ ( 1,140.1 ) $ 89.8 $ 1,187.8 $ ( 1,166.4 ) $ 21.4

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 ):

Amortization expense for finite-lived intangible assets was $ 5.8 million and $ 11.4 million for the quarter and two quarters ended March 30, 2025, respectively, and $ 5.1 million and $ 10.2 million for the quarter and two quarters ended March 31, 2024, respectively.

Estimated future amortization expense as of March 30, 2025 ( in millions ):

Fiscal Year Total

2025 (excluding the quarter ended December 29, 2024)

2025 (excluding the two quarters ended March 30, 2025)

Thereafter 62.4

7 unchanged sentences

( 1.6 ) ( 95.6 ) — — ( 97.2 )

Goodwill balance at December 29, 2024

Goodwill balance at March 30, 2025

$ 489.9 $ 2,799.1 $ 34.7 $ 1.0 $ 3,324.7

11 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 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.

As of March 30, 2025, we were in compliance with all applicable covenants.

No amounts were outstanding under our 2021 credit facility as of March 30, 2025 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.

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

We had no borrowings outstanding under our commercial paper program as of March 30, 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 second 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:

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 December 29, 2024 and September 29, 2024, we had no borrowings outstanding under these credit facilities.

As of March 30, 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) :

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

Mar 30, 2025 Sep 29, 2024 Stated Interest Rate Effective Interest Rate (1)

Issuance Amount Estimated Fair Value Amount Estimated Fair Value

28 unchanged sentences

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 December 29, 2024 by fiscal year ( in millions ):

The following table summarizes our long-term debt maturities as of March 30, 2025 by fiscal year ( in millions ):

Fiscal Year Total

3 unchanged sentences

The components of lease costs (in millions) :

Quarter Ended

Dec 29, 2024 Dec 31, 2023

Quarter Ended Two Quarters Ended

Mar 30, 2025 Mar 31, 2024 Mar 30, 2025 Mar 31, 2024

Operating lease costs (1)

5 unchanged sentences

The following table includes supplemental information (in millions) :

Quarter Ended

Dec 29, 2024 Dec 31, 2023

Two Quarters Ended

Mar 30, 2025 Mar 31, 2024

Cash paid related to operating lease liabilities $ 928.8 $ 778.8

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

Dec 29, 2024 Dec 31, 2023

1,076.6 980.5

Mar 30, 2025 Mar 31, 2024

Weighted-average remaining operating lease term 8.6 years 8.6 years

1 unchanged sentence

(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.

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.

These balances were not material as of March 30, 2025 and September 29, 2024.

Finance lease costs were also immaterial for the quarters ended March 30, 2025 and March 31, 2024.

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

Fiscal Year Total

2025 (excluding the quarter ended December 29, 2024)

2025 (excluding the two quarters ended March 30, 2025)

Thereafter 5,188.9

2 unchanged sentences

Total $ 10,437.7

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.

As of March 30, 2025, we have entered into operating leases that have not yet commenced of $ 1.5 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 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.

As of March 30, 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 March 30, 2025 and March 31, 2024, we recognized $ 44.1 million of prepaid royalty revenue related to Nestlé.

During each of the two quarters ended March 30, 2025 and March 31, 2024, we recognized $ 88.2 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 December 29, 2024

Stored value cards and loyalty program at September 29, 2024

Quarter Ended March 30, 2025

Stored value cards and loyalty program at December 29, 2024

Revenue deferred - card activations, card reloads and Stars earned 3,496.8

Revenue recognized - card and Stars redemptions and breakage ( 3,862.9 )

Stored value cards and loyalty program at March 30, 2025 (2)

Quarter Ended March 31, 2024

Stored value cards and loyalty program at December 31, 2023

Quarter Ended 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 )

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

Two Quarters Ended March 30, 2025

Stored value cards and loyalty program at September 29, 2024

Revenue deferred - card activations, card reloads and Stars earned 7,911.2

Revenue recognized - card and Stars redemptions and breakage ( 7,755.8 )

Stored value cards and loyalty program at March 30, 2025 (2)

Two Quarters Ended March 31, 2024

Stored value cards and loyalty program at October 1, 2023

1 unchanged sentence

Revenue recognized - card and Stars redemptions and breakage ( 7,890.8 )

Stored value cards and loyalty program at December 31, 2023 (2)

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

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

(2) As of December 29, 2024 and December 31, 2023, approximately $ 2.1 billion and $ 2.0 billion, respectively, of these amounts were current.

(2) As of March 30, 2025 and March 31, 2024, approximately $ 1.7 billion 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

December 29, 2024

March 30, 2025

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

2 unchanged sentences

Other comprehensive income/(loss) attributable to Starbucks 1.9 ( 26.9 ) ( 11.0 ) 90.6 54.6

Net gains/(losses) in AOCI, end of period $ ( 1.8 ) $ 67.3 $ 371.1 $ ( 965.6 ) $ ( 529.0 )

March 31, 2024

Net gains/(losses) in AOCI, beginning of period $ ( 7.9 ) $ 15.7 $ 217.7 $ ( 783.3 ) $ ( 557.8 )

Net gains/(losses) recognized in OCI before reclassifications ( 0.3 ) 27.1 69.2 ( 150.0 ) ( 54.0 )

Net (gains)/losses reclassified from AOCI to earnings 0.3 ( 2.2 ) ( 7.7 ) — ( 9.6 )

Other comprehensive income/(loss) attributable to Starbucks — 24.9 61.5 ( 150.0 ) ( 63.6 )

Other comprehensive income/(loss) attributable to NCI — — — ( 0.1 ) ( 0.1 )

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

December 31, 2023

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

March 30, 2025

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 $ ( 1.8 ) $ 67.3 $ 371.1 $ ( 965.6 ) $ ( 529.0 )

March 31, 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 3.9 60.7 50.3 28.2 143.1

Net (gains)/losses reclassified from AOCI to earnings 0.5 27.4 ( 14.4 ) — 13.5

Other comprehensive income/(loss) attributable to Starbucks 4.4 88.1 35.9 28.2 156.6

Other comprehensive income/(loss) attributable to NCI — — — 0.1 0.1

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

Impact of reclassifications from AOCI on the consolidated statements of earnings (in millions) :

2 unchanged sentences

the Statements of Earnings

Dec 29, 2024 Dec 31, 2023

Mar 30, 2025 Mar 31, 2024

Gains/(losses) on available-for-sale debt securities $ ( 0.2 ) $ ( 0.4 ) Interest income and other, net

4 unchanged sentences

$ 42.6 $ 9.6 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 December 29, 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.

Two Quarters Ended

Components Amounts Reclassified from AOCI Affected Line Item in

the Statements of Earnings

Mar 30, 2025 Mar 31, 2024

Gains/(losses) on available-for-sale debt securities $ ( 0.4 ) $ ( 0.7 ) Interest income and other, net

Gains/(losses) on cash flow hedges 66.4 ( 29.7 ) Please refer to Note 3 , Derivative Financial Instruments for additional information.

Gains/(losses) on net investment hedges 55.4 19.1 Interest expense

121.4 ( 11.3 ) Total before tax

( 30.5 ) ( 2.2 ) Tax (expense)/benefit

$ 90.9 $ ( 13.5 ) Net of tax

During the two quarters ended March 30, 2025, we made no share repurchases.

During the two quarters ended March 31, 2024, we repurchased 12.8 million shares of common stock on the open market for $ 1,250.1 million.

As of March 30, 2025, 29.8 million shares remained available for repurchase under current authorizations.

During the second quarter of fiscal 2025, our Board of Directors approved a quarterly cash dividend to shareholders of $ 0.61 per share to be paid on May 30, 2025 to shareholders of record as of the close of business on May 16, 2025.

Employee Stock Plans

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.

As of March 30, 2025, there wer e 75.3 million s hares of common stock available for issuance pursuant to future equity-based compensation awards and 9.4 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

Dec 29, 2024 Dec 31, 2023

Quarter Ended Two Quarters Ended

Mar 30, 2025 Mar 31, 2024 Mar 30, 2025 Mar 31, 2024

Restricted Stock Units (“RSUs”) $ 77.8 $ 78.3 $ 178.3 $ 173.2

Options — ( 0.1 ) — ( 0.2 )

Total stock-based compensation expense $ 77.8 $ 78.2 $ 178.3 $ 173.0

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

Stock option and RSU transactions from September 29, 2024 through March 30, 2025 ( in millions ):

Stock Options RSUs

3 unchanged sentences

Forfeited/expired — ( 1.4 )

Options outstanding/Nonvested RSUs, December 29, 2024

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

Options outstanding/Nonvested RSUs, March 30, 2025

Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of March 30, 2025

Earnings per Share

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

Quarter Ended

Dec 29, 2024 Dec 31, 2023

Quarter Ended Two Quarters Ended

Mar 30, 2025 Mar 31, 2024 Mar 30, 2025 Mar 31, 2024

Net earnings attributable to Starbucks $ 384.2 $ 772.4 $ 1,165.0 $ 1,796.8

14 unchanged sentences

Consolidated revenue mix by product type ( in millions ):

Quarter Ended

Dec 29, 2024 Dec 31, 2023

Quarter Ended Two Quarters Ended

Mar 30, 2025 Mar 31, 2024 Mar 30, 2025 Mar 31, 2024

$ 5,293.6 60 % $ 5,160.6 60 % $ 10,971.6 60 % $ 10,856.4 60 %

8 unchanged sentences

North America International Channel Development Corporate and Other Total

December 29, 2024

March 30, 2025

Total net revenues $ 6,472.7 $ 1,867.1 $ 409.0 $ 12.8 $ 8,761.6

3 unchanged sentences

Operating income/(loss) $ 748.3 $ 217.0 $ 193.5 $ ( 557.8 ) $ 601.0

December 31, 2023

March 31, 2024

Total net revenues $ 6,380.0 $ 1,757.3 $ 418.2 $ 7.5 $ 8,563.0

3 unchanged sentences

Operating income/(loss) $ 1,148.3 $ 233.8 $ 216.3 $ ( 499.5 ) $ 1,098.9

Two Quarters Ended

North America International Channel Development Corporate and Other Total

March 30, 2025

Total net revenues $ 13,544.6 $ 3,738.4 $ 845.3 $ 31.1 $ 18,159.4

Depreciation and amortization expenses 588.1 178.1 — 60.0 826.2

Income from equity investees — ( 0.7 ) 106.2 — 105.5

Operating income/(loss) $ 1,929.6 $ 454.1 $ 401.6 $ ( 1,062.5 ) $ 1,722.8

March 31, 2024

Total net revenues $ 13,500.7 $ 3,603.6 $ 866.2 $ 17.8 $ 17,988.3

Depreciation and amortization expenses 507.5 168.3 — 61.4 737.2

Income from equity investees — 0.3 123.5 — 123.8

Operating income/(loss) $ 2,669.1 $ 475.3 $ 426.0 $ ( 986.1 ) $ 2,584.3

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 ended March 30, 2025, we recognized pre-tax restructuring charges of $ 116.2 million, primarily associated with partner severance costs.

These costs were recorded to restructuring on our consolidated statement of earnings.

As of March 30, 2025, approximately $ 69 million of severance costs remained in accrued payroll and benefits on our consolidated balance sheet.

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