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Item 1. Financial Statements

2025-07-29 compared with 2025-04-29 · 128 added, 115 removed, 709 unchanged (26% 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 $ 558.5 $ 1,055.7 $ 1,723.5 $ 2,852.7

64 unchanged sentences

(in millions, unaudited)

Two Quarters Ended

Three Quarters Ended

OPERATING ACTIVITIES:

49 unchanged sentences

CONSOLIDATED STATEMENTS OF EQUITY

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

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

(in millions, except per share data, unaudited)

6 unchanged sentences

Shares Amount

Balance, December 29, 2024

Balance, March 30, 2025

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

Net earnings — — — 558.3 — 558.3 0.2 558.5

Other comprehensive income — — — — 54.6 54.6 — 54.6

Other comprehensive income/(loss) — — — — ( 6.3 ) ( 6.3 ) 0.1 ( 6.2 )

Stock-based compensation expense — — 66.7 — — 66.7 — 66.7

4 unchanged sentences

— — — — 0.1 0.1 — 0.1

Balance, March 30, 2025

Balance, June 29, 2025

1,136.5 $ 1.1 $ 548.7 $ ( 7,700.6 ) $ ( 535.2 ) $ ( 7,686.0 ) $ 7.4 $ ( 7,678.6 )

Balance, 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 )

Net earnings — — — 1,054.8 — 1,054.8 0.9 1,055.7

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

Other comprehensive income — — — — 13.5 13.5 — 13.5

Stock-based compensation expense — — 64.2 — — 64.2 — 64.2

6 unchanged sentences

Other — — — — — — ( 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 )

3 unchanged sentences

CONSOLIDATED STATEMENTS OF EQUITY

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

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

(in millions, except per share data, unaudited)

16 unchanged sentences

Other — — — 0.1 ( 0.2 ) ( 0.1 ) — ( 0.1 )

Balance, March 30, 2025

Balance, June 29, 2025

1,136.5 $ 1.1 $ 548.7 $ ( 7,700.6 ) $ ( 535.2 ) $ ( 7,686.0 ) $ 7.4 $ ( 7,678.6 )

10 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 )

22 unchanged sentences

Financial Statement Preparation

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.

The unaudited consolidated financial statements as of June 29, 2025, and for the quarters and three quarters ended June 29, 2025 and June 30, 2024, have been prepared by Starbucks Corporation under the rules and regulations of the Securities and Exchange Commission (“SEC”).

In the opinion of management, the financial information for the quarters and three quarters ended June 29, 2025 and June 30, 2024 reflects all adjustments and accruals, which are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods.

In this Quarterly Report on Form 10-Q (“10-Q”), Starbucks Corporation (together with its subsidiaries) is referred to as “Starbucks,” the “Company,” “we,” “us,” or “our.”

2 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 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”).

The results of operations for the quarter and three quarters ended June 29, 2025 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending September 28, 2025 (“fiscal 2025”).

Recent Accounting Pronouncements Not Yet Adopted

2 unchanged sentences

The amendments do not change how segments are determined, aggregated, or how thresholds are applied to determine reportable segments.

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

We are currently evaluating the impact of the amendments and expect to include updated segment expense disclosures in our fiscal year 2025 Form 10-K.

In December 2023, the FASB issued guidance expanding disclosure requirements related to income taxes.

48 unchanged sentences

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

Mar 30, 2025 Sep 29, 2024

Jun 29, 2025 Sep 29, 2024

Cash Flow Hedges:

14 unchanged sentences

Location of gain/(loss)

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

Jun 29, 2025 Jun 30, 2024 Jun 29, 2025 Jun 30, 2024

Cash Flow Hedges:

10 unchanged sentences

Foreign currency debt — — — —

Two Quarters Ended

Three Quarters Ended

Gains/(Losses) Recognized in

1 unchanged sentence

AOCI to Earnings Location of gain/(loss)

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

Jun 29, 2025 Jun 30, 2024 Jun 29, 2025 Jun 30, 2024

Cash Flow Hedges:

13 unchanged sentences

Gains/(Losses) Recognized in Earnings

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

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

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

Jun 29, 2025 Jun 30, 2024 Jun 29, 2025 Jun 30, 2024

Non-Designated Derivatives:

7 unchanged sentences

Notional amounts of outstanding derivative contracts (in millions) :

Mar 30, 2025 Sep 29, 2024

Jun 29, 2025 Sep 29, 2024

Coffee $ 509 $ 154

5 unchanged sentences

Derivative Assets

Balance Sheet Location Mar 30, 2025 Sep 29, 2024

Balance Sheet Location Jun 29, 2025 Sep 29, 2024

Designated Derivative Instruments (1) :

9 unchanged sentences

Derivative Liabilities

Balance Sheet Location Mar 30, 2025 Sep 29, 2024

Balance Sheet Location Jun 29, 2025 Sep 29, 2024

Designated Derivative Instruments:

1 unchanged sentence

Other long-term liabilities 4.9 33.3

Dairy Accrued liabilities 0.1 —

Foreign currency - other Accrued liabilities 3.9 4.7

8 unchanged sentences

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

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

Jun 29, 2025 Sep 29, 2024 Jun 29, 2025 Sep 29, 2024

Location on the balance sheet

4 unchanged sentences

Fair Value Measurements at Reporting Date Using

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

June 29, 2025 Quoted Prices in Active Markets for Identical Assets

(Level 1) Significant Other Observable Inputs

4 unchanged sentences

Corporate debt securities 68.3 — 56.6 11.7

Mortgage and other asset-backed securities 0.4 — 0.4 —

State and local government obligations 1.1 — 1.1 —

government treasury securities 90.8 90.8 — —

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 March 30, 2025 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 June 29, 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 two quarters ended March 30, 2025 and March 31, 2024.

There were no material fair value adjustments during the three quarters ended June 29, 2025 and June 30, 2024.

Inventories (in millions) :

Mar 30, 2025 Sep 29, 2024

Jun 29, 2025 Sep 29, 2024

Unroasted $ 1,063.9 $ 665.1

3 unchanged sentences

Total $ 2,259.2 $ 1,777.3

(1) “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 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.

As of June 29, 2025, we had committed to purchasing green coffee totaling $ 250 million under fixed-price contracts and an estimated $ 626 million under price-to-be-fixed contracts.

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

7 unchanged sentences

Property, Plant and Equipment, net

Mar 30, 2025 Sep 29, 2024

Jun 29, 2025 Sep 29, 2024

Land $ 56.9 $ 56.9

10 unchanged sentences

Accrued Liabilities

Mar 30, 2025 Sep 29, 2024

Jun 29, 2025 Sep 29, 2024

Accrued occupancy costs $ 80.5 $ 81.7

6 unchanged sentences

Store Operating Expenses

Quarter Ended Two Quarters Ended

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

Quarter Ended Three Quarters Ended

Jun 29, 2025 Jun 30, 2024 Jun 29, 2025 Jun 30, 2024

Wages and benefits $ 2,477.7 $ 2,215.7 $ 7,272.9 $ 6,564.4

4 unchanged sentences

Indefinite-Lived Intangible Assets

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

(in millions) Jun 29, 2025 Sep 29, 2024

Trade names, trademarks and patents $ 79.5 $ 79.5

Finite-Lived Intangible Assets

Mar 30, 2025 Sep 29, 2024

Jun 29, 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 $ 1,257.7 $ ( 1,167.5 ) $ 90.2 $ 1,187.8 $ ( 1,166.4 ) $ 21.4

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 ):

Amortization expense for finite-lived intangible assets was $ 4.4 million and $ 15.8 million for the quarter and three quarters ended June 29, 2025, respectively, and $ 5.1 million and $ 15.3 million for the quarter and three quarters ended June 30, 2024, respectively.

Estimated future amortization expense as of June 29, 2025 ( in millions ):

Fiscal Year Total

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

2025 (excluding the three quarters ended June 29, 2025)

Thereafter 66.1

7 unchanged sentences

( 0.4 ) ( 36.7 ) — — ( 37.1 )

Goodwill balance at March 30, 2025

Goodwill balance at June 29, 2025

$ 491.1 $ 2,858.0 $ 34.7 $ 1.0 $ 3,384.8

2 unchanged sentences

Revolving Credit Facility

Our $ 3.0 billion unsecured five-year revolving credit facility (the “2021 credit facility”), of which $ 150.0 million may be used for issuances of letters of credit, is currently set to mature on September 16, 2026 .

The 2021 credit facility is available for working capital, capital expenditures, and other corporate purposes, including acquisitions and share repurchases.

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

Our 2025 credit facility, of which $ 150.0 million may be used for issuances of letters of credit, is currently set to mature on June 13, 2030 .

The 2025 credit facility is available for working capital, capital expenditures, and other general corporate purposes, including acquisitions and share repurchases.

We have the option, subject to negotiation and agreement with the related banks, to increase the maximum commitment amount by an additional $ 1.0 billion.

Borrowings under the 2021 credit facility, which was most recently amended in April 2023, will bear interest at a variable rate based on Term SOFR, and, for U.S.

dollar-denominated loans under certain circumstances, a Base Rate (as defined in the 2021 credit facility), in each case plus an applicable margin.

The applicable margin is based on the Company’s long-term credit ratings assigned by the Moody’s and Standard & Poor’s rating agencies.

The “Base Rate” is the highest of (i) the Federal Funds Rate (as defined in the 2021 credit facility) plus 0.500 %, (ii) Bank of America’s prime rate, and (iii) Term SOFR plus 1.000 %.

Term SOFR means the forward-looking SOFR term rate administrated by the Chicago Mercantile Exchange plus a SOFR Adjustment of 0.100 %.

Borrowings under the 2025 credit facility will bear interest at a fluctuating rate based on the Term Secured Overnight Financing Rate (“Term SOFR”), and, for U.S.

dollar-denominated loans under certain circumstances, a Base Rate (as defined in the 2025 credit facility), in each case plus an applicable rate.

The applicable rate is based on the Company’s long-term credit ratings assigned by Moody’s and Standard & Poor’s rating agencies.

The 2025 credit facility contains alternative interest rate provisions specifying rate calculations to be used at such time Term SOFR ceases to be available as a benchmark due to reference rate reform.

The “Base Rate” of interest is the highest of (i) the Federal Funds Rate plus 0.50 %, (ii) Bank of America’s prime rate, (iii) Term SOFR plus 1.00 %, and (iv) 1.00 %.

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

The 2025 credit facility contains provisions requiring us to maintain compliance with certain covenants, including a minimum fixed charge coverage ratio, which measures our ability to cover financing expenses.

As of 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.

As of June 29, 2025, we were in compliance with all applicable covenants.

No amounts were outstanding under our 2025 credit facility as of June 29, 2025, or our 2021 credit facility as of September 29, 2024.

Short-term Debt

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 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.

We had no borrowings outstanding under our commercial paper program as of June 29, 2025 and September 29, 2024.

Our total available contractual borrowing capacity for general corporate purposes was $ 3.0 billion as of the end of our third quarter of fiscal 2025.

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

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 30, 2025 and September 29, 2024, we had no borrowings outstanding under these credit facilities.

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

Long-term Debt

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

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

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

Issuance Amount Estimated Fair Value Amount Estimated Fair Value

5 unchanged sentences

March 2028 notes 600.0 588.2 600.0 590.3 3.500 % 3.529 %

May 2028 notes 750.0 753.5 — — 4.500 % 4.719 %

November 2028 notes 750.0 742.9 750.0 748.4 4.000 % 3.958 %

2 unchanged sentences

March 2030 notes 750.0 679.0 750.0 679.0 2.250 % 3.084 %

May 2030 notes 500.0 505.7 — — 4.800 % 4.932 %

November 2030 notes 1,250.0 1,129.2 1,250.0 1,135.4 2.550 % 2.582 %

3 unchanged sentences

February 2034 notes 500.0 501.2 500.0 515.0 5.000 % 5.127 %

May 2035 notes 500.0 506.9 — — 5.400 % 5.510 %

June 2045 notes 350.0 281.7 350.0 308.5 4.300 % 4.348 %

12 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 March 30, 2025 by fiscal year ( in millions ):

The following table summarizes our long-term debt maturities as of June 29, 2025 by fiscal year ( in millions ):

Fiscal Year Total

2025 $ 1,250.0

2025 (excluding the three quarters ended June 29, 2025) $ 1,250.0

Thereafter 10,100.0

1 unchanged sentence

The components of lease costs (in millions) :

Quarter Ended Two Quarters Ended

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

Quarter Ended Three Quarters Ended

Jun 29, 2025 Jun 30, 2024 Jun 29, 2025 Jun 30, 2024

Operating lease costs (1)

5 unchanged sentences

The following table includes supplemental information (in millions) :

Two Quarters Ended

Mar 30, 2025 Mar 31, 2024

Three Quarters Ended

Jun 29, 2025 Jun 30, 2024

Cash paid related to operating lease liabilities $ 1,411.9 $ 1,223.7

1 unchanged sentence

1,489.0 1,548.7

Mar 30, 2025 Mar 31, 2024

Jun 29, 2025 Jun 30, 2024

Weighted-average remaining operating lease term 8.6 years 8.6 years

2 unchanged sentences

Finance lease assets are recorded in property, plant and equipment, net with the corresponding lease liabilities included in accrued liabilities and other long-term liabilities on the consolidated balance sheets.

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

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

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

Finance lease costs were also immaterial for the quarters ended June 29, 2025 and June 30, 2024.

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

Fiscal Year Total

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

2025 (excluding the three quarters ended June 29, 2025)

Thereafter 5,551.2

2 unchanged sentences

Total $ 10,567.0

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.

As of June 29, 2025, we have entered into operating leases that have not yet commenced of $ 1.2 billion, primarily related to real estate leases.

These leases will commence between fiscal year 2025 and fiscal year 2029 with lease terms ranging from 5 to 20 years.

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 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 June 29, 2025, the current and long-term deferred revenue related to the Nestlé up-front payment was $ 177.0 million and $ 5.7 billion, respectively.

As of September 29, 2024, the current and long-term deferred revenue related to the Nestlé up-front payment was $ 177.0 million and $ 5.8 billion, respectively.

During each of the quarters ended 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.

During each of the quarters ended June 29, 2025 and June 30, 2024, we recognized $ 44.1 million of prepaid royalty revenue related to Nestlé.

During each of the three quarters ended June 29, 2025 and June 30, 2024, we recognized $ 132.3 million of prepaid royalty revenue related to Nestlé.

Changes in our deferred revenue balance related to our stored value cards and loyalty program (in millions) :

Quarter Ended March 30, 2025

Stored value cards and loyalty program at December 29, 2024

Quarter Ended June 29, 2025

Stored value cards and loyalty program at March 30, 2025

Revenue deferred - card activations, card reloads and Stars earned 3,764.0

Revenue recognized - card and Stars redemptions and breakage ( 3,788.2 )

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

Quarter Ended June 30, 2024

Stored value cards and loyalty program at March 31, 2024

Quarter Ended March 31, 2024

Stored value cards and loyalty program at December 31, 2023

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

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

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

Two Quarters Ended March 30, 2025

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

Three Quarters Ended June 29, 2025

Stored value cards and loyalty program at September 29, 2024

1 unchanged sentence

Revenue recognized - card and Stars redemptions and breakage ( 11,544.0 )

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

Two Quarters Ended March 31, 2024

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

Stored value cards and loyalty program at June 30, 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 March 30, 2025 and March 31, 2024, approximately $ 1.7 billion of these amounts were current.

(2) As of June 29, 2025 and June 30, 2024, approximately $ 1.7 billion and $ 1.6 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 30, 2025

June 29, 2025

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

2 unchanged sentences

Other comprehensive income/(loss) attributable to Starbucks 1.6 ( 87.3 ) ( 78.2 ) 157.6 ( 6.3 )

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

Net gains/(losses) in AOCI, end of period $ ( 0.2 ) $ ( 20.0 ) $ 292.9 $ ( 807.9 ) $ ( 535.2 )

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 )

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

March 30, 2025

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

June 29, 2025

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

4 unchanged sentences

Net gains/(losses) in AOCI, end of period $ ( 0.2 ) $ ( 20.0 ) $ 292.9 $ ( 807.9 ) $ ( 535.2 )

March 31, 2024

June 30, 2024

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

Mar 30, 2025 Mar 31, 2024

Jun 29, 2025 Jun 30, 2024

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 27.0 14.2 Interest expense

Translation adjustment (1)

Other — 0.1 Interest income and other, net

50.3 14.2 Total before tax

1 unchanged sentence

$ 39.3 $ 10.0 Net of tax

Two Quarters Ended

Three Quarters Ended

Components Amounts Reclassified from AOCI Affected Line Item in

the Statements of Earnings

Mar 30, 2025 Mar 31, 2024

Jun 29, 2025 Jun 30, 2024

Gains/(losses) on available-for-sale debt securities $ ( 0.6 ) $ ( 1.0 ) Interest income and other, net

1 unchanged sentence

Gains/(losses) on net investment hedges 82.4 33.3 Interest expense

Translation adjustment (1)

Other — 0.1 Interest income and other, net

171.7 2.9 Total before tax

1 unchanged sentence

$ 130.2 $ ( 3.5 ) 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 30, 2025.

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.

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

During the three quarters ended June 29, 2025, we made no share repurchases.

During the three quarters ended June 30, 2024, we repurchased 12.8 million shares of common stock on the open market for $ 1,250.1 million.

As of June 29, 2025, 29.8 million shares remained available for repurchase under current authorizations.

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

Employee Stock Plans

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.

As of June 29, 2025, there we re 76.2 million shares of common stock available for issuance pursuant to future equity-based compensation awards and 9.2 million shares available for issuance under our employee stock purchase plan.

Stock-based compensation expense recognized in the consolidated statements of earnings (in millions) :

Quarter Ended Two Quarters Ended

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

Quarter Ended Three Quarters Ended

Jun 29, 2025 Jun 30, 2024 Jun 29, 2025 Jun 30, 2024

Restricted Stock Units (“RSUs”) $ 66.0 $ 63.7 $ 244.3 $ 236.9

1 unchanged sentence

Total stock-based compensation expense $ 66.0 $ 63.5 $ 244.3 $ 236.5

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

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

Stock Options RSUs

3 unchanged sentences

Forfeited/expired — ( 1.5 )

Options outstanding/Nonvested RSUs, March 30, 2025

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

Options outstanding/Nonvested RSUs, June 29, 2025

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

Earnings per Share

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

Quarter Ended Two Quarters Ended

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

Quarter Ended Three Quarters Ended

Jun 29, 2025 Jun 30, 2024 Jun 29, 2025 Jun 30, 2024

Net earnings attributable to Starbucks $ 558.3 $ 1,054.8 $ 1,723.2 $ 2,851.7

14 unchanged sentences

Consolidated revenue mix by product type ( in millions ):

Quarter Ended Two Quarters Ended

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

Quarter Ended Three Quarters Ended

Jun 29, 2025 Jun 30, 2024 Jun 29, 2025 Jun 30, 2024

$ 5,752.0 61 % $ 5,528.0 61 % $ 16,723.8 61 % $ 16,384.4 60 %

3 unchanged sentences

(1) “ Beverage” represents sales within our company-operated stores.

(2) “ Food” includes sales within our company-operated stores.

(2) “ Food” represents sales within our company-operated stores.

(3) “ Other” primarily consists of packaged and single-serve coffees and teas, royalty and licensing revenues, beverage-related ingredients, and serveware, among other items.

2 unchanged sentences

North America International Channel Development Corporate and Other Total

March 30, 2025

June 29, 2025

Total net revenues $ 6,927.0 $ 2,010.7 $ 483.8 $ 34.5 $ 9,456.0

3 unchanged sentences

Operating income/(loss) $ 918.7 $ 272.7 $ 218.4 $ ( 474.2 ) $ 935.6

March 31, 2024

June 30, 2024

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

3 unchanged sentences

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

Two Quarters Ended

Three Quarters Ended

North America International Channel Development Corporate and Other Total

March 30, 2025

June 29, 2025

Total net revenues $ 20,471.7 $ 5,749.1 $ 1,329.0 $ 65.6 $ 27,615.4

2 unchanged sentences

Operating income/(loss) $ 2,848.3 $ 726.9 $ 619.8 $ ( 1,536.6 ) $ 2,658.4

March 31, 2024

June 30, 2024

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

5 unchanged sentences

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.

During the quarter and three quarters ended June 29, 2025, we recognized pre-tax restructuring charges of $ 20.8 million and $ 137.0 million, respectively, primarily associated with partner severance costs.

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

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

As of June 29, 2025, approximately $ 29 million of severance costs remained in accrued payroll and benefits on our consolidated balance sheet.

We expect additional restructuring costs in the fourth quarter of fiscal 2025, which may, in the aggregate, be material.

These are primarily related to the evaluation of our store portfolio and restructuring our support organization, including the recently announced voluntary resignation program.

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