What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-11-14 compared with 2024-11-20 · 275 added, 210 removed, 1117 unchanged (30% of the section changed)

37 unchanged sentences

Net earnings including noncontrolling interests $ 1,856.7 $ 3,762.3 $ 4,124.7

Other comprehensive income/(loss), net of tax:

Other comprehensive income/(loss):

Unrealized holding gains/(losses) on available-for-sale debt securities 2.7 12.1 3.3

7 unchanged sentences

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

( 224.9 ) ( 19.2 ) ( 158.9 )

Tax expense/(benefit) 52.4 11.0 26.1

Other comprehensive income/(loss) 349.4 ( 315.0 ) ( 610.4 )

Other comprehensive income/(loss), net of tax

( 30.5 ) 349.4 ( 315.0 )

Comprehensive income including noncontrolling interests 1,826.2 4,111.7 3,809.7

28 unchanged sentences

Stored value card liability and current portion of deferred revenue 1,840.6 1,781.2

Short-term debt — 33.5

Current portion of long-term debt 1,498.9 1,248.9

26 unchanged sentences

Deferred income taxes, net ( 90.6 ) ( 13.8 ) ( 59.4 )

Income earned from equity method investees ( 306.4 ) ( 301.8 ) ( 268.7 )

Income earned from equity method investees, net ( 274.2 ) ( 306.4 ) ( 301.8 )

Distributions received from equity method investees 294.4 333.3 222.8

2 unchanged sentences

Non-cash lease costs 1,513.8 1,314.9 1,365.9

Loss on retirement and impairment of assets 121.5 101.4 91.4

Loss on disposal, impairment, and accelerated amortization of assets 834.7 121.5 101.4

Other 17.3 31.9 26.8

13 unchanged sentences

Additions to property, plant and equipment ( 2,305.5 ) ( 2,777.5 ) ( 2,333.6 )

Acquisitions, net of cash acquired ( 177.1 ) — —

Proceeds from sale of assets — — 110.0

Net proceeds from the divestiture of certain operations — — 59.3

Other ( 62.1 ) ( 72.7 ) ( 56.1 )

41 unchanged sentences

— — — ( 2,474.6 ) — ( 2,474.6 ) — ( 2,474.6 )

Net distributions to noncontrolling interests — — — — — — ( 0.6 ) ( 0.6 )

Noncontrolling interest resulting from divestiture — — ( 3.0 ) — ( 0.7 ) ( 3.7 ) ( 0.4 ) ( 4.1 )

Balance, October 1, 2023 1,142.6 $ 1.1 $ 38.1 $ ( 7,255.8 ) $ ( 778.2 ) $ ( 7,994.8 ) $ 7.0 $ ( 7,987.8 )

Net earnings — — — 3,760.9 — 3,760.9 1.4 3,762.3

Other comprehensive loss — — — — ( 314.3 ) ( 314.3 ) ( 0.7 ) ( 315.0 )

Other comprehensive income — — — — 349.0 349.0 0.4 349.4

Stock-based compensation expense — — 312.0 — — 312.0 — 312.0

2 unchanged sentences

Repurchase of common stock (1)

( 12.8 ) — ( 35.2 ) ( 1,223.9 ) — ( 1,259.1 ) — ( 1,259.1 )

Cash dividends declared, $ 2.32 per share

— — — ( 2,625.0 ) — ( 2,625.0 ) — ( 2,625.0 )

Noncontrolling interest resulting from divestiture — — ( 3.0 ) — ( 0.7 ) ( 3.7 ) ( 0.4 ) ( 4.1 )

Balance, October 1, 2023 1,142.6 $ 1.1 $ 38.1 $ ( 7,255.8 ) $ ( 778.2 ) $ ( 7,994.8 ) $ 7.0 $ ( 7,987.8 )

Purchase of noncontrolling interests and other — — — — 0.4 0.4 ( 1.5 ) ( 1.1 )

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 — — — 1,856.4 — 1,856.4 0.3 1,856.7

Other comprehensive income — — — — 349.0 349.0 0.4 349.4

Other comprehensive loss — — — — ( 30.3 ) ( 30.3 ) ( 0.2 ) ( 30.5 )

Stock-based compensation expense — — 321.9 — — 321.9 — 321.9

7 unchanged sentences

Balance, September 28, 2025 1,136.9 $ 1.1 $ 634.1 $ ( 8,272.5 ) $ ( 459.3 ) $ ( 8,096.6 ) $ 7.4 $ ( 8,089.2 )

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

(1) Includes excise tax on share repurchases.

3 unchanged sentences

Note 1 Summary of Significant Accounting Policies and Estimates

Note 2 Acquisitions, Divestitures , and Strategic Alliance

Note 2 Acquisitions and Divestitures

Note 3 Derivative Financial Instruments

12 unchanged sentences

Note 17 Segment Reporting

Note 18 Subsequent Event

Note 18 Restructuring

Subsequent Event

STARBUCKS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Fiscal Years ended September 29, 2024, October 1, 2023, and October 2, 2022

Fiscal Years ended September 28, 2025, September 29, 2024, and October 1, 2023

Summary of Significant Accounting Policies and Estimates

12 unchanged sentences

Additional details on the nature of our business and our reportable operating segments are included in Note 17 , Segment Reporting.

Certain prior period information at Note 7 , Supplemental Balance Sheet and Statement of Earnings Information, has been reclassified to conform to the current presentation.

Certain prior period information at Note 14 , Income Taxes, has been reclassified to conform to the current presentation.

Principles of Consolidation

9 unchanged sentences

Restructuring

In fiscal 2022, we announced our plan in the U.S.

market to increase efficiency while elevating the partner and customer experience.

As a result of these restructuring efforts, we recorded approximately $ 22 million and $ 46 million to restructuring and impairments in our consolidated statements of earnings during fiscal years 2023 and 2022, respectively.

No restructuring and impairment costs attributable to this plan were recorded in our consolidated statements of earnings during fiscal year 2024.

As of September 29, 2024, and October 1, 2023, there were no material restructuring-related accrued liabilities on our consolidated balance sheets.

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 by revitalizing coffeehouses, enhancing the customer experience, and improving efficiency.

As part of this strategy, during the second quarter of fiscal 2025, we 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.

In the fourth quarter of fiscal 2025 , we announced a restructuring plan involving the closure of coffeehouses, and the further transformation of our support organization, as part of the Company’s “Back to Starbucks” strategy.

We assessed our existing store portfolio with respect to both whether coffeehouses had a viable path to offering the physical environment consistent with the brand and a clear path to financial performance, and we closed, or plan to close, coffeehouses that did not meet these criteria.

Refer to Note 18 , Restructuring, included in Item 8 of Part II of this 10-K, for further discussion.

Cash and Cash Equivalents

22 unchanged sentences

We also have a marketable equity securities portfolio, which is comprised of marketable equity mutual funds and equity exchange-traded funds.

Marketable equity securities are recorded at fair value and approximates a portion of our liability under our Management Deferred Compensation Plan (“MDCP”).

Marketable equity securities are recorded at fair value and approximate a portion of our liability under our Management Deferred Compensation Plan (“MDCP”).

Gains or losses from the portfolio and the change in our MDCP liability are recorded in general and administrative expenses in our consolidated statements of earnings.

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Excluding interest rate hedging instruments and cross-currency swaps, we generally do not enter into derivative instruments with maturities longer than three years.

However, we are allowed to net settle transactions with respective counterparties for certain derivative contracts, inclusive of interest rate swaps and foreign currency forwards, with a single, net amount payable by one party to the other.

We also enter into collateral security arrangements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds.

As of September 29, 2024, and October 1, 2023, cash collateral received under collateral security arrangements was $ 230.9 million and $ 77.1 million, respectively, and is included in other long-term liabilities on our consolidated balance sheets.

As of September 29, 2024, and October 1, 2023, cash collateral pledged as part of our commodity derivative margin requirements was $ 12.4 million and $ 20.6 million, respectively, and is included in prepaid expenses and other current assets on our consolidated balance sheets.

We are allowed to net settle transactions with respective counterparties for certain derivative contracts, inclusive of interest rate swaps and foreign currency forwards, with a single, net amount payable by one party to the other.

As of September 28, 2025, and September 29, 2024, cash collateral pledged as part of our commodity derivative margin requirements was $ 37.9 million and $ 12.4 million, respectively, and is included in prepaid expenses and other current assets on our consolidated balance sheets.

The potential effects of netting arrangements with our derivative contracts, excluding the effects of collateral, would not have had a material impact on our consolidated balance sheets.

3 unchanged sentences

We minimize this credit risk by entering into transactions with carefully selected, credit-worthy counterparties and distribute contracts among several financial institutions to reduce the concentration of credit risk.

As of September 28, 2025, and September 29, 2024, cash collateral received under collateral security arrangements was $ 187.0 million and $ 230.9 million, respectively, and is included in other long-term liabilities on our consolidated balance sheets.

Cash Flow Hedges

3 unchanged sentences

Cash flows from hedging transactions are classified in the same categories as the cash flows from the respective hedged items.

For de-designated cash flow hedges in which the transactions are no longer likely to occur, the related accumulated derivative gains or losses are recognized in interest income and other, net on our consolidated statements of earnings.

For de-designated cash flow hedges where it is probable that the hedged transaction will not occur during the originally specified time period or within an additional two-month period thereafter, the related accumulated derivative gains or losses are recognized in interest income and other, net on our consolidated statements of earnings.

Net Investment Hedges

17 unchanged sentences

For the fiscal year ended September 28, 2025 , we did not observe a significant deterioration of our receivable portfolio that required a significant increase in our allowance for credit losses.

As of September 29, 2024, and October 1, 2023, our allowance for credit losses was $ 21.2 million and $ 23.8 million, respectively.

As of September 28, 2025, and September 29, 2024, our allowance for credit losses was $ 24.0 million a nd $ 21.2 million, respectively.

Inventories are stated at the lower of cost (primarily moving average cost) or net realizable value.

1 unchanged sentence

Inventory reserves are based on inventory obsolescence trends, historical experience, and application of the specific identification method.

As of September 29, 2024, and October 1, 2023, inventory reserves were $ 58.0 million and $ 44.4 million, respectively.

As of September 28, 2025, and September 29, 2024, inventory reserves were $ 56.6 million and $ 58.0 million, respectively.

Property, Plant and Equipment

9 unchanged sentences

The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized.

When assets are disposed of, whether through retirement or sale, the net gain or loss is recognized in net earnings.

When assets are disposed of, whether through retirement or sale, the net gain or loss is recognized in

net earnings.

Long-lived assets to be disposed of are reported at the lower of their carrying amount or fair value less estimated costs to sell.

1 unchanged sentence

When evaluating for impairment, we first compare the carrying value of the asset to the asset’s estimated future undiscounted cash flows.

If the estimated undiscounted future cash flows are less than the carrying

value of the asset, we determine if we have an impairment loss by comparing the carrying value of the asset to the asset’s estimated fair value and recognize an impairment charge when the asset’s carrying value exceeds its estimated fair value.

If the estimated undiscounted future cash flows are less than the carrying value of the asset, we determine if we have an impairment loss by comparing the carrying value of the asset to the asset’s estimated fair value and recognize an impairment charge when the asset’s carrying value exceeds its estimated fair value.

The fair value of the asset is estimated using a discounted cash flow model based on forecasted future revenues and operating costs, using internal projections.

1 unchanged sentence

For company-operated store assets, the impairment test is performed at the individual store asset group level.

We recognized net disposition and impairment charges of $ 94.0 million, $ 91.1 million, and $ 66.6 million in fiscal 2024, 2023, and 2022, respectively.

Included in these amounts, we recorded $ 23.3 million, $ 23.2 million, and $ 14.3 million of impairment losses within store operating expenses on our consolidated statements of earnings during the fiscal years ended September 29, 2024, October 1, 2023, and October 2, 2022, respectively.

Of the total net disposition and impairment charges recorded in fiscal 2022, $ 9.6 million was restructuring related and recorded in restructuring and impairment expenses.

We recognized net disposition and impairment charge s of $ 595.3 million, $ 94.0 million, and $ 91.1 million in fiscal 2025, 2024, and 2023, respectively.

Included in these amounts, we recorded $ 102.2 million, $ 23.3 million, and $ 23.2 million of impairment losses within store operating expenses on our consolidated statements of earnings during the fiscal years ended September 28, 2025, September 29, 2024, and October 1, 2023, respectively.

Further, of the total net impairment and disposition charges recorded in fiscal 2025, $ 352.8 million was restructuring related and recorded in restructuring and impairment expenses.

See Note 18 , Restructuring, to the consolidated financial statements included i n Item 8 of Part II of this 10-K, for further discussion.

Unless it is restructuring related, the nature of the underlying asset that is impaired or disposed of will determine the operating expense line on which the related impact is recorded on our consolidated statements of earnings.

24 unchanged sentences

For operating leases, ROU assets are reduced over the lease term by the recognized straight-line lease expense less the amount of accretion of the lease liability determined using the effective interest method.

For finance leases, ROU assets are amortized on a straight-line basis over the shorter of the useful life of the leased asset or the lease term.

For finance leases, ROU assets are amortized on a straight-line basis over the

shorter of the useful life of the leased asset or the lease term.

Interest expense on each finance lease liability is recognized utilizing the effective interest method.

2 unchanged sentences

See Note 10 , Leases, for additional details.

For the year ended September 28, 2025, we recognized accelerated amortization of ROU lease assets and other lease exit costs of $ 239.3 million, d ue to store closures prior to the end of contractual lease terms, which was recorded in restructuring and impairments on the consolidated statement of earnings.

See Note 18 , Restructuring, to the consolidated financial statements included i n Item 8 of Part II of this 10-K, for further discussion.

We evaluate goodwill for impairment annually during our third fiscal quarter, or more frequently if an event occurs or circumstances change, such as material deterioration in performance or a significant number of store closures, indicating that the carrying value of our goodwill may not be recoverable.

13 unchanged sentences

Other Intangible Assets

Other intangible assets include finite-lived intangible assets, which mainly consist of acquired and reacquired rights, trade secrets, licensing agreements, contract-based patents, and copyrights.

Other intangible assets include finite-lived intangible assets, which mainly consist of acquired and reacquired rights, trade names, trade secrets, licensing agreements, contract-based patents, and copyrights.

These assets are amortized over their estimated useful lives and are tested for impairment using a similar methodology to our property, plant and equipment, as described above.

15 unchanged sentences

Company-operated store revenues are recognized when payment is tendered at the point-of-sale as the performance obligation has been satisfied.

For products sold via delivery platforms, contractual terms are evaluated for each service provider to

determine gross versus net presentation, and revenues are also recognized when control of products are transferred to the customers.

For products sold via delivery platforms, contractual terms are evaluated for each service provider to determine gross versus net presentation, and revenues are also recognized when control of products are transferred to the customers.

Delivery service fees were immaterial in the periods presented.

16 unchanged sentences

Breakage is recognized as company-operated stores and licensed stores revenue within the consolidated statement of earnings.

For the fiscal years ended September 29, 2024, October 1, 2023, and October 2, 2022, we recognized breakage revenue of $ 187.6 million, $ 196.1 million, and $ 196.0 million in company-operated store revenues, respectively, and $ 20.0 million, $ 18.9 million, and $ 16.7 million in licensed store revenues, respectively.

For the fiscal years ended September 28, 2025, September 29, 2024, and October 1, 2023, we recognized breakage revenue of $ 200.4 million, $ 187.6 million, and $ 196.1 million in company-operated store revenues, respectively, and $ 22.0 million, $ 20.0 million, and $ 18.9 million in licensed store revenues, respectively.

Loyalty Program

18 unchanged sentences

Product and Distribution Costs

Product and distribution costs primarily include expenses related to raw materials, purchased goods, packaging, and delivery, along with operational costs of our supply chain organization.

Product and distribution costs primarily include expenses related to raw materials, purchased goods, packaging, delivery, and tariff impacts, along with operational costs of our supply chain organization.

This encompasses wages, benefits, occupancy costs, and depreciation associated with sourcing, procuring, manufacturing, warehousing, and transportation of products sold at our company-operated and licensed stores, as well as through Channel Development and our other businesses.

1 unchanged sentence

Store Operating Expenses

Store operating expenses consist of costs incurred in our company-operated stores, primarily wages and benefits related to store partners (employees), occupancy costs, delivery commissions, and other costs that directly support the operation and sales-related activities of those stores.

Store operating expenses consist of costs incurred in our company-operated stores, primarily wages and benefits related to store partners (employees), occupancy costs, marketing, delivery commissions, and other costs that directly support the operation and sales-related activities of those stores.

General and Administrative Expenses

11 unchanged sentences

Upon satisfaction of the ARO conditions, any difference between the recorded ARO liability and the actual retirement costs incurred is recognized as a gain or loss in store operating expenses on our consolidated statements of earnings.

As of September 29, 2024, and October 1, 2023, our net ARO assets included in property, plant and equipment were $ 25.1 million and $ 25.6 million, respectively, and our net ARO liabilities included in other long-term liabilities were $ 119.2 million and $ 110.3 million, respectively.

As of September 28, 2025, and September 29, 2024, our net ARO assets included in property, plant and equipment were $ 25.5 million and $ 25.1 million, respectively, and our net ARO liabilities included in other long-term liabilities were $ 126.3 million and $ 119.2 million, respectively.

Stock-based Compensation

5 unchanged sentences

Expense for performance-based RSUs is recognized when it is probable the performance goal will be achieved.

Performance goals are determined by the Board and may include measures such as earnings per share, operating income, return on invested capital, total shareholder return, and metrics focused on talent and sustainability.

Performance goals are determined by the Board and may include measures such as earnings per share, comparable store sales, operating income, return on invested capital, total shareholder return, and metrics focused on achievement of key components of the “Back to Starbucks” plan.

The fair value of RSUs is based on the closing price of Starbucks common stock on the award date, less the present value of the dividends expected to be paid on the underlying shares during the vesting period.

The fair value of each stock option granted is estimated on the grant date using the Black-Scholes-Merton option valuation

The fair value of each stock option granted is estimated on the grant date using the Black-Scholes-Merton option valuation model.

The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and our historical experience.

34 unchanged sentences

Recently Adopted Accounting Pronouncements

In the first quarter of fiscal 2022, we adopted the Financial Accounting Standards Board (“FASB”) issued guidance related to reference rate reform.

The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates.

The guidance was effective upon issuance and generally can be applied to applicable contract modifications through December 31, 2024.

The adoption of the new guidance did not have a material impact on our financial statements.

Recent Accounting Pronouncements Not Yet Adopted

In November 2023, the FASB issued guidance expanding segment disclosure requirements.

The amendments require enhanced disclosure for certain segment items and disclosure on how management uses reported measures to assess segment performance.

In the fourth quarter of fiscal 2025, we adopted the Financial Accounting Standards Board (“FASB”) issued guidance expanding segment disclosure requirements.

The amendments require enhanced disclosure for certain segment items and disclosure on how our Chief Operating Decision Maker (“CODM”) 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 significant impact on our consolidated financial statement disclosures.

The adoption of this guidance did not have a significant impact on our consolidated financial statement disclosures.

Refer to Note 1 7 , Segment Reporting, for our segment disclosures including enhancements as a result of the amendments.

Recent Accounting Pronouncements Not Yet Adopted

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

2 unchanged sentences

The amendments are effective for our fiscal year ending September 27, 2026.

While we are still evaluating the specific impacts and timing of adoption, we anticipate this guidance will have a significant impact on our annual income tax disclosures.

In 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.

While we are still evaluating the specific impacts, we anticipate this guidance will have a significant impact on our annual income tax disclosures.

In November 2024, the FASB issued guidance expanding disclosure requirements related to certain income statement expenses.

2 unchanged sentences

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

In July 2025, the FASB issued guidance providing a practical expedient for measuring expected credit losses on current accounts receivable and current contract assets arising from revenue transactions.

The amendment is effective for our fiscal year ended October 3, 2027.

While we are still evaluating the specific impacts, we anticipate the impact to be limited to the simplification of the estimation process, with no material impact on the allowance for credit losses.

Acquisitions and Divestitures

On October 14, 2024, we acquired a 100% ownership interest in 23.5 Degrees Topco Limited, a U.K.

licensed business partner, to expand our portfolio of company-operated stores and enhance the coffeehouse experience for customers.

The acquisition converted 113 licensed stores to company-operated stores within our International operating segment.

The assets acquired and liabilities assumed are included in our International operating segment.

Assets acquired primarily include operating lease right-of-use assets, intangible assets, goodwill, and property, plant and equipment.

The intangible assets acquired as part of this transaction include reacquired licensee agreement rights, which will be amortized over the estimated useful life.

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

The transaction is not material to our consolidated financial statements.

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.

1 unchanged sentence

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

In the fourth quarter of fiscal 2022, we sold our Evolution Fresh brand and business to Bolthouse Farms.

This transaction did not have a material impact on our consolidated financial statements.

Derivative Financial Instruments

5 unchanged sentences

To hedge the exposure to changes in the fair value of our fixed-rate debt, we enter into interest rate swap agreements, which are designated as fair value hedges.

The changes in fair values of these derivative instruments and the offsetting changes in fair

values of the underlying hedged debt due to changes in the relevant benchmark interest rates are recorded in interest expense.

The changes in fair values of these derivative instruments and the offsetting changes in fair values of the underlying hedged debt due to changes in the relevant benchmark interest rates are recorded in interest expense.

Refer to Note 9 , Debt, for additional information on our long-term debt.

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

Sep 29, 2024 Oct 1, 2023 Oct 2, 2022

Sep 28, 2025 Sep 29, 2024 Oct 1, 2023

Non-Designated Derivatives:

7 unchanged sentences

Notional amounts of outstanding derivative contracts (in millions) :

Sep 29, 2024 Oct 1, 2023

Sep 28, 2025 Sep 29, 2024

Coffee $ 387 $ 154

5 unchanged sentences

Derivative Assets

Balance Sheet Location Sep 29, 2024 Oct 1, 2023

Balance Sheet Location Sep 28, 2025 Sep 29, 2024

Designated Derivative Instruments (1) :

4 unchanged sentences

Other long-term assets 6.7 1.7

Interest rate swap

Prepaid expenses and other current assets

Non-designated Derivative Instruments:

3 unchanged sentences

Derivative Liabilities

Balance Sheet Location Sep 29, 2024 Oct 1, 2023

Balance Sheet Location Sep 28, 2025 Sep 29, 2024

Designated Derivative Instruments:

1 unchanged sentence

Other long-term liabilities 3.5 33.3

Dairy Accrued liabilities — 1.1

Foreign currency - other Accrued liabilities 0.2 4.7

9 unchanged sentences

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

Sep 29, 2024 Oct 1, 2023 Sep 29, 2024 Oct 1, 2023

Sep 28, 2025 Sep 29, 2024 Sep 28, 2025 Sep 29, 2024

Location on the balance sheet

1 unchanged sentence

$ 334.1 $ 332.2 $ ( 15.9 ) $ ( 17.8 )

(1) Balance as of October 1, 2023, includes $750 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 12 , Equity .

10 unchanged sentences

Corporate debt securities 67.8 — 55.9 11.9

Foreign corporate bonds 0.2 — 0.2 —

Mortgage and other asset-backed securities 0.4 — 0.4 —

2 unchanged sentences

Total available-for-sale debt securities 151.9 82.6 57.4 11.9

Structured deposits 84.1 — 84.1 —

Marketable equity securities 95.3 95.3 — —

9 unchanged sentences

Total Available-for-sale debt securities 246.9 36.3 183.9 26.7

Structured Deposit 0.2 — 0.2 —

Total long-term investments 246.9 36.3 183.9 26.7

8 unchanged sentences

Fair Value Measurements at Reporting Date Using

October 1, 2023 Quoted Prices

September 29, 2024 Quoted Prices

Identical Assets

7 unchanged sentences

Corporate debt securities

Foreign government obligations 3.9 — 3.9 —

51.8 — 51.8 —

Foreign corporate bonds

Mortgage and other asset-backed securities 0.4 — 0.4 —

State and local government obligations

government treasury securities 36.9 36.9 — —

11 unchanged sentences

government treasury securities 94.9 94.9 — —

Total Available-for-sale debt securities

275.8 94.9 169.9 11.0

Structured Deposit

Total long-term investments

276.0 94.9 170.1 11.0

Other long-term assets:

9 unchanged sentences

Available-for-sale Debt Securities

Long-term in vestments generally mature with in 5 years .

The majority of long-term in vestments mature with in 5 years .

Proceeds from sales of securities we re $ 1.1 million, $ 1.3 million, and $ 2.5 million for fiscal 2025, 2024, and 2023, respectively.

Realized gains and losses were not material f or fiscal 2025, 2024, and 2023.

Gross unrealized holding gains and losses were not material as of September 29, 2024, and October 1, 2023.

Gross unrealized holding gains and losses were not material as of September 28, 2025, and September 29, 2024.

Marketable Equity Securities

1 unchanged sentence

Our marketable equity securities portfolio approximates a portion of our liability under our MDCP, a defined contribution plan.

Our MDCP liability was $ 112.3 million and $ 90.4 million as of September 29, 2024, and October 1, 2023, respectively.

Our MDCP liability was $ 115.6 million and $ 112.3 million as of September 28, 2025, and September 29, 2024, respectively.

The changes in net unrealized holding gains and losses in the marketable equity securities portfolio included in earnings for fiscal 2025, 2024, and 2023 were not material.

Gross unrealized holding gains and losses on marketable equity securities were not material as of September 29, 2024, and October 1, 2023 .

Gross unrealized holding gains and losses on marketable equity securities were not material as of September 28, 2025, and September 29, 2024 .

Derivative Assets and Liabilities

4 unchanged sentences

Impairment of property, plant and equipment and ROU assets is included in Note 1 , Summary of Significant Accounting Policies and Estimates.

We recognized impairments during fiscal years ended September 29, 2024, October 1, 2023, and October 2, 2022.

See Note 1 , Summary of Significant Accounting Policies and Estimates for additional discussion of these impairments.

We recognized impairments during fiscal years ended September 28, 2025, September 29, 2024, and October 1, 2023.

See Note 1 , Summary of Significant Accounting Policies and Estimates, and Note 18 , Restructuring, to the consolidated financial statements included i n Item 8 of Part II of this 10-K for additional discussion of these impairments.

Fair Value of Other Financial Instruments

1 unchanged sentence

Inventories (in millions)

Sep 29, 2024 Oct 1, 2023

Sep 28, 2025 Sep 29, 2024

Unroasted $ 911.2 $ 665.1

5 unchanged sentences

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

As of September 29, 2024, we had committed to purchasing green coffee totaling $ 180 million under fixed-price contracts and an estimated $ 929 million under price-to-be-fixed contracts.

As of September 28, 2025, we had committed to purchasing green coffee totaling $ 129 million under fixed-price contracts and an estimated $ 1.1 billion under price-to-be-fixed contracts.

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

6 unchanged sentences

Equity Investments (in millions)

Sep 29, 2024 Oct 1, 2023

Sep 28, 2025 Sep 29, 2024

Equity method investments $ 418.9 $ 424.1

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Equity Method Investments

As of September 29, 2024, we had a 50 % ownership interest in Tata Starbucks Limited (India), with a carrying value of $ 41.1 million.

As of September 28, 2025 and September 29, 2024, we had a 50 % ownership interest in Tata Starbucks Limited (India), with a carrying value of $ 39.3 million and $ 41.1 million, respectively.

Tata Starbucks Limited (India) operates licensed Starbucks ® retail stores.

including Frappuccino coffee drinks, Starbucks Doubleshot espresso drinks, Starbucks ® Iced Espresso Classics, and Starbucks ® Iced Coffee.

As of September 29, 2024, the carrying value of this investment was $ 112.3 million.

We also license the rights to produce and distribute Starbucks-branded products to our 50 % owned joint venture, The North American Coffee Partnership with the Pepsi-Cola Company, which develops and distributes bottled Starbucks ® beverages, including Frappuccino coffee drinks, Starbucks Doubleshot espresso drinks, Starbucks ® Iced Espresso Classics, and Starbucks ® Iced Coffee.

As of September 28, 2025 and September 29, 2024, the carrying value of this investment was $ 74.0 million and $ 112.3 million, respectively.

Our share of income and losses from our equity method investments is included in income from equity investees on our consolidated statements of earnings.

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Related product and distribution costs were $ 57.7 million, $ 58.6 million, and $ 85.6 million in fiscal 2025, 2024, and 2023, respectively.

As of September 29, 2024, and October 1, 2023, there were $ 12.2 million and $ 19.1 million of accounts receivable from equity investees, respectively, on our consolidated balance sheets, primarily related to product sales and royalty revenues.

As of September 28, 2025, and September 29, 2024, there were $ 17.3 million and $ 12.2 million of accounts receivable from equity investees, respectively, on our consolidated balance sheets, primarily related to product sales and royalty revenues.

We also hold equity interests in other entities to support our corporate and investment strategies, which are not core to our business, including our limited partnership interest in Valor Siren Ventures I L.P.

and Valor Siren Ventures II L.P, which are private equity funds investing in technologies, products, and solutions relating to food or retail.

The total carrying value of these investments was $ 211.9 million as of September 29, 2024.

The total carrying value of these investments was $ 242.4 million and $ 211.9 million, as of September 28, 2025 and September 29, 2024, respectively.

Our share of income and losses from these private equity interests is included in interest income and other, net on our consolidated statements of earnings.

The related financial statement activities were not material during the periods presented.

Additional disclosure regarding changes in our equity method investments due to acquisition or divestiture is included in Note 2 , Acquisitions, Divestitures and Strategic Alliance.

Other Investments

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Property, Plant and Equipment, net

Sep 29, 2024 Oct 1, 2023

Sep 28, 2025 Sep 29, 2024

Land $ 54.9 $ 56.9

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Accrued Liabilities

Sep 29, 2024 Oct 1, 2023

Sep 28, 2025 Sep 29, 2024

Accrued occupancy costs $ 89.5 $ 81.7

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Store Operating Expenses

Sep 29, 2024 Oct 1, 2023 Oct 2, 2022

Sep 28, 2025 Sep 29, 2024 Oct 1, 2023

Wages and benefits $ 9,862.4 $ 8,828.6 $ 8,733.4

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Indefinite-Lived Intangible Assets

(in millions) Sep 29, 2024 Oct 1, 2023

(in millions) Sep 28, 2025 Sep 29, 2024

Trade names, trademarks, and patents

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Finite-Lived Intangible Assets

Sep 29, 2024 Oct 1, 2023

Sep 28, 2025 Sep 29, 2024

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

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Estimated future amortization expense as of September 28, 2025 ( in millions ):

Fiscal Year Ending

Thereafter 60.4

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$ 491.5 $ 2,691.1 $ 34.7 $ 1.0 $ 3,218.3

Goodwill balance at October 1, 2023 $ 491.5 $ 2,691.1 $ 34.7 $ 1.0 $ 3,218.3

— 97.4 — — 97.4

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

Acquisition (2)

( 0.9 ) ( 51.6 ) — — ( 52.5 )

Goodwill balance at September 28, 2025 $ 490.6 $ 2,842.6 $ 34.7 $ 1.0 $ 3,368.9

(1) “Other” consists of changes in the goodwill balance resulting from foreign currency translation.

(2) Additions to goodwill include the acquisition of 23.5 Degrees Topco Limited in the first quarter of fiscal 2025.

During the fiscal year ended September 28, 2025, we completed our annual goodwill impairment analysis.

The results of our analysis indicated significant excess fair values over carrying values across the different reporting units, and therefore no goodwill impairment was recorded.

The results of our analysis indicated significant excess fair values over carrying values across the different reporting units, and therefore no goodwill impairment was recorded , consistent with the fiscal year ended September 29, 2024.

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 September 28, 2025, we were in compliance with all applicable covenants.

No amounts were outstanding under our 2021 credit facility as of September 29, 2024, or October 1, 2023.

No amounts were outstanding under our 2025 credit facility as of September 28, 2025, or our 2021 credit facility as of September 29, 2024.

Short-term Debt

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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.

As of September 29, 2024, and October 1, 2023, we had no borrowings outstanding under the program.

We had no borrowings outstanding under our commercial paper program as of September 28, 2025, and September 29, 2024.

Our total available contractual borrowing capacity for general corporate purposes was $ 3.0 billion as of September 28, 2025.

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

• A ¥ 5.0 billion, or $ 33.4 million, credit facility is currently set to mature on December 30, 2025.

Borrowings under this credit facility are subject to terms defined within the facility and will bear interest at a variable rate based on Tokyo Interbank Offered Rate (“TIBOR”) plus an applicable margin of 0.400 %.

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 0.400 %.

• A ¥ 10.0 billion, or $ 66.8 million, credit facility is currently set to mature on March 27, 2026.

Borrowings under this credit facility are subject to terms defined within the facility and will bear interest at a variable rate based on TIBOR plus an applicable margin of 0.300 %.

As of September 29, 2024, we had no 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 September 28, 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) :

Sep 29, 2024 Oct 1, 2023 Stated Interest Rate Effective Interest Rate (1)

Sep 28, 2025 Sep 29, 2024 Stated Interest Rate Effective Interest Rate (1)

Issuance Face Value Estimated Fair Value Face Value 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 $ 1,243.4 3.800 % 3.721 %

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March 2028 notes 600.0 591.9 600.0 590.3 3.500 % 3.529 %

May 2028 notes 750.0 757.1 — — 4.500 % 4.719 %

November 2028 notes 750.0 747.9 750.0 748.4 4.000 % 3.958 %

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March 2030 notes 750.0 687.8 750.0 679.0 2.250 % 3.084 %

May 2030 notes 500.0 510.2 — — 4.800 % 4.932 %

November 2030 notes 1,250.0 1,145.9 1,250.0 1,135.4 2.550 % 2.582 %

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500.0 509.9 500.0 515.0 5.000 % 5.127 %

May 2035 notes 500.0 516.6 — — 5.400 % 5.510 %

June 2045 notes 350.0 292.1 350.0 308.5 4.300 % 4.348 %

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(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 the 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 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 million of our August 2029 notes.

Refer to Note 3 , Derivative Financial Instruments, for additional information on our interest rate swap designated as a fair value hedge.

(3) Floating rate notes, which 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 September 28, 2025, by fiscal year ( in millions ):

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The components of lease costs (in millions) :

Sep 29, 2024 Oct 1, 2023 Oct 2, 2022

Sep 28, 2025 Sep 29, 2024 Oct 1, 2023

Operating lease costs (1)

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The following table includes supplemental information (in millions) :

Sep 29, 2024 Oct 1, 2023 Oct 2, 2022

Sep 28, 2025 Sep 29, 2024 Oct 1, 2023

Cash paid related to operating lease liabilities $ 1,901.4 $ 1,672.5 $ 1,657.2

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1,980.8 2,263.9 1,893.4

Sep 29, 2024 Oct 1, 2023 Oct 2, 2022

Sep 28, 2025 Sep 29, 2024 Oct 1, 2023

Weighted-average remaining operating lease term 8.6 years 8.6 years 8.5 years

Weighted-average operating lease discount rate 3.7 % 3.4 % 3.1 %

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 September 29, 2024, and October 1, 2023.

Finance lease costs were also immaterial for the fiscal years ending September 29, 2024, October 1, 2023, and October 2, 2022.

(1) Includes leases obtained in the acquisition of 23.5 Degrees Topco Limited in the first quarter of fiscal 2025.

These balances were not material as of September 28, 2025, and September 29, 2024.

Finance lease costs were also immaterial for the fiscal years ended September 28, 2025, September 29, 2024, and October 1, 2023.

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

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Total $ 10,536.7

As of September 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 2028 with lease terms of 5 years to 20 years.

As of September 28, 2025, we have entered into operating leases that have not yet commenced of $ 823.5 million, p rimarily related to real estate leases.

These leases will commence between fiscal year 2026 and fiscal year 2028 with lease terms of 5

years to 20 years.

Lease exit costs associated with our restructuring efforts primarily relate to the closure of certain Starbucks company-operated stores, and are recognized in line with store closure timing.

Total lease exit costs of $ 239.3 million were recorded in restructuring and impairments on the consolidated statement of earnings in fiscal 2025.

See Note 18 , Restructuring, to the consolidated financial statements included i n Item 8 of Part II of this 10-K, for further discussion.

Deferred Revenue

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As of September 28, 2025, the current and long-term deferred revenue related to the Nestlé up-front payment was $ 177.0 million and $ 5.6 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 fiscal years ended September 29, 2024, October 1, 2023, and October 2, 2022, we recognized $ 176.5 million of prepaid royalty revenue related to Nestlé.

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 fiscal years ended September 28, 2025, September 29, 2024, and October 1, 2023, we recognized $ 176.5 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) :

Fiscal Year Ended September 28, 2025

Stored value cards and loyalty program at October 1, 2023

Stored value cards and loyalty program at September 29, 2024

Revenue deferred - card activations, card reloads and Stars earned 15,245.8

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Stored value cards and loyalty program at September 28, 2025 (2)

Fiscal Year Ended October 1, 2023

Fiscal Year Ended September 29, 2024

Stored value cards and loyalty program at October 1, 2023

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Revenue recognized - card and Stars redemptions and breakage ( 15,665.1 )

Stored value cards and loyalty program at October 1, 2023 (2)

Stored value cards and loyalty program at September 29, 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 September 29, 2024, approximately $ 1.6 billion of this amount was current.

As of October 1, 2023, approximately $ 1.5 billion of this amount was current .

(2) As of each of the fiscal years ended September 28, 2025, and September 29, 2024, approximately $ 1.6 billion of the respective amounts was current.

In addition to 2.4 billion shares of authorized common stock with $ 0.001 par value per share, we have authorized 7.5 million shares of preferred stock, none of which was outstanding at September 28, 2025.

During the fiscal year ended October 2, 2022, we repurchased 36.3 million shares of common stock for $ 4.0 billion on the open market.

On March 15, 2022, we announced that our Board authorized the repurchase of up to an additional 40 million shares under our ongoing share repurchase program.

On April 4, 2022, we announced a temporary suspension of our share repurchase program to allow us to augment investments in our stores and partners.

During the first quarter of fiscal 2023, we resumed our share repurchase program.

During the fiscal year ended October 1, 2023, we repurchased 10.0 million shares of common stock for $ 1.0 billion on the open market.

During the fiscal year ended September 29, 2024, we repurchased 12.8 million shares of common stock for $ 1.3 billion on the open market.

During the fiscal year ended September 28, 2025, we made no share repurchases.

During the fiscal year ended September 29, 2024 and October 1, 2023, we repurchased 12.8 million shares of common stock for $ 1.3 billion on the open market and 10.0 million shares of common stock for $ 1.0 billion on the open market, respectively.

As of September 28, 2025, 29.8 million shares remained available for repurchase under current authorizations.

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other items and the unrealized gains and losses, net of applicable taxes, on available-for-sale debt securities and on derivative instruments designated and qualifying as cash flow and net investment hedges.

Changes in AOCI by component for the fiscal years ended September 29, 2024, October 1, 2023, and October 2, 2022, net of tax, are as follows:

Changes in AOCI by component for the fiscal years ended September 28, 2025, September 29, 2024, and October 1, 2023, net of tax, are as follows:

(in millions) Available-for-Sale Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total

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(in millions) Available-for-Sale Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total

October 1, 2023

September 29, 2024

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

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Other comprehensive income/(loss) attributable to Starbucks 3.2 ( 246.5 ) 34.2 ( 105.2 ) ( 314.3 )

Other comprehensive income/(loss) attributable to NCI

— — — ( 0.7 ) ( 0.7 )

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

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the Statements of Earnings

Sep 29, 2024 Oct 1, 2023 Oct 2, 2022

Sep 28, 2025 Sep 29, 2024 Oct 1, 2023

Gains/(losses) on available-for-sale securities $ ( 0.9 ) $ ( 1.2 ) $ ( 0.7 ) Interest income and other, net

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Employee Stock and Benefit Plans

We maintain several equity incentive plans under which we may grant non-qualified stock options, incentive stock options, restricted stock, RSUs, or stock appreciation rights to employees, non-employee directors, and consultants.

We maintain several equity incentive plans under which we may grant non-qualified stock options, incentive stock options, restricted stock, restricted stock units (“RSUs”), or stock appreciation rights to employees, non-employee directors, and consultants.

We issue new shares of common stock upon exercise of stock options and the vesting of RSUs.

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As of September 28, 2025, there were 74.5 million shares of common stock available for issuance pursuant to future equity-based compensation awards and 9.1 million shares available for issuance under our ESPP.

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

Fiscal Year Ended Sep 29, 2024 Oct 1, 2023 Oct 2, 2022

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

Fiscal Year Ended Sep 28, 2025 Sep 29, 2024 Oct 1, 2023

RSUs $ 318.3 $ 308.3 $ 302.6

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The time-vested RSUs generally vest in either two or four equal annual installments beginning a year from the grant date.

Our performance-based RSUs are awarded to eligible employees and entitle the grantee to receive shares of common stock if we achieve specified performance goals during the performance period and the grantee remains employed through the vesting period.

RSU transactions for the fiscal year ended September 28, 2025 (in millions, except per share and contractual life amounts) :

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Life (Years) Aggregate

Nonvested, October 1, 2023 7.3 $ 99.56 1.0 $ 670

Nonvested, September 29, 2024 8.7 $ 102.91 1.2 $ 844

Granted 5.9 95.83

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Nonvested, September 28, 2025 9.0 $ 98.89 1.2 $ 791

As of September 29, 2024, total unrecognized stock-based compensation expense related to nonvested RSUs, net of estimated forfeitures, was approximately $ 255 million, before income taxes, and is expected to be recognized over a weighted average period of approximately 2.3 years.

As of September 28, 2025, total unrecognized stock-based compensation expense related to non-vested RSUs, net of estimated forfeitures, was approximately $ 278 million, before income taxes, and is expected to be recognized over a weighted average period of approximately 2.1 years.

The total fair value of RSUs vested was $ 333 million, $ 314 million, and $ 292 million during fiscal 2025, 2024, and 2023, respectively.

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All outstanding stock options are non-qualified stock options.

No stock options were granted during the fiscal years ended September 29, 2024, October 1, 2023, and October 2, 2022.

Stock option transactions for the fiscal year ended September 29, 2024 (in millions, except per share and contractual life amounts) :

Options Weighted

per Share Weighted

Life (Years) Aggregate

Outstanding, October 1, 2023 2.0 $ 55.16 2.3 $ 72

Exercised ( 1.1 ) 52.36

Expired/forfeited — 56.79

Outstanding, September 29, 2024 0.9 58.45 1.8 36

Exercisable, September 29, 2024 0.9 58.45 1.8 36

Vested, September 29, 2024 0.9 58.45 1.8 36

The aggregate intrinsic value in the table above, which is the amount by which the market value of the underlying stock exceeded the exercise price of outstanding options, is before applicable income taxes and represents the amount optionees would have realized if all in-the-money options had been exercised on the last business day of the period indicated.

No stock options were granted during the fiscal years ended September 28, 2025, September 29, 2024, or October 1, 2023.

Stock option transactions were not material for the fiscal year ended September 28, 2025.

As of September 28, 2025, all options outstanding were vested and exercisable.

No options vested during fiscal 2024 and 2023.

The total fair value of options vested was $ 8 million during fiscal 2022.

No options vested during fiscal 2025 or 2024.

The total intrinsic value of options exercised was $ 19 million, $ 44 million, and $ 98 million during fiscal 2025, 2024, and 2023, respectively.

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The purchase price is 95 % of the fair market value of the stock on the last business day of the quarterly offering period.

The number of shares issued under our ESPP was 0.6 million in fiscal 2024.

The number of shares issued under our ESPP wa s 0.6 million, 0.6 million, and 0.5 million in fiscal years 2025, 2024, and 2023, respectively .

Deferred Compensation Plan

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Components of earnings before income taxes (in millions):

Fiscal Year Ended Sep 29, 2024 Oct 1, 2023 Oct 2, 2022

Fiscal Year Ended Sep 28, 2025 Sep 29, 2024 Oct 1, 2023

United States $ 1,850.1 $ 4,087.6 $ 4,488.6

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Provision/(benefit) for income taxes (in millions):

Fiscal Year Ended Sep 29, 2024 Oct 1, 2023 Oct 2, 2022

Fiscal Year Ended Sep 28, 2025 Sep 29, 2024 Oct 1, 2023

Current taxes:

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federal income tax rate with our effective income tax rate:

Fiscal Year Ended Sep 29, 2024 Oct 1, 2023 Oct 2, 2022

Fiscal Year Ended Sep 28, 2025 Sep 29, 2024 Oct 1, 2023

Statutory rate 21.0 % 21.0 % 21.0 %

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Foreign rate differential 0.3 0.3 0.4

Residual tax on foreign earnings 3.6 0.4 —

Foreign derived intangible income ( 1.6 ) ( 0.8 ) ( 0.8 )

Tax status change of foreign entity

Other, net 0.6 0.1 ( 0.4 )

Effective tax rate 25.9 % 24.3 % 23.6 %

During fiscal 2025, we revised our indefinite reinvestment assertions from prior years' cumulative earnings from certain foreign subsidiaries, and in the fourth quarter of fiscal 2025, we repatriated approximately $ 900 million of cash from foreign subsidiaries, upon which approximately $ 90 million in related withholding taxes were recorded and paid, as reflected in Residual tax on foreign earnings.

As of September 28, 2025, in certain foreign subsidiaries in which we are partially indefinitely reinvested, the gross taxable temporary difference between the accounting basis and tax basis was approximately $ 1.8 billion for which there could be up to approximately $ 180 million of unrecognized tax liability.

Tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities (in millions):

Sep 29, 2024 Oct 1, 2023

Sep 28, 2025 Sep 29, 2024

Deferred tax assets:

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Net deferred tax asset (liability) $ 1,776.5 $ 1,745.6

The valuation allowances as of September 29, 2024, and October 1, 2023, were primarily related to net operating losses and other deferred tax assets of consolidated foreign subsidiaries.

As of September 29, 2024, we had federal net operating loss carryforwards of $ 76.8 million, which have an indefinite carryforward period, federal tax credit carryforwards of $ 69.0 million, which will begin to expire in fiscal 2030, and foreign net operating loss carryforwards of $ 434.8 million, of which $ 101.2 million have an indefinite carryforward period and the remainder will begin to expire in fiscal 2025.

The valuation allowances as of September 28, 2025, and September 29, 2024, were primarily related to net operating losses and other deferred tax assets of consolidated foreign subsidiaries.

As of September 28, 2025, we had federal tax credit carryforwards of $ 68.5 million, which will begin to expire in fiscal 2030, and foreign net operating loss carryforwards of $ 444.8 million, of which $ 104.5 million have an indefinite carryforward period and the remainder will begin to expire in fiscal 2026.

Uncertain Tax Positions

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We recognized expense of $ 8.4 million, $ 8.8 million, and $ 5.7 million of interest and penalties in income tax expense, prior to the benefit of the federal tax deduction, for fiscal 2025, 2024, and 2023, respectively.

As of September 29, 2024, and October 1, 2023, we had accrued interest and penalties of $ 22.5 million and $ 15.1 million, respectively, on our consolidated balance sheets.

As of September 28, 2025, and September 29, 2024, we had accrued interest and penalties of $ 30.4 million and $ 22.5 million, respectively, on our consolidated balance sheets.

The following table summarizes the activity related to our unrecognized tax benefits (in millions) :

Sep 29, 2024 Oct 1, 2023 Oct 2, 2022

Sep 28, 2025 Sep 29, 2024 Oct 1, 2023

Beginning balance $ 108.0 $ 105.0 $ 89.7

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

Fiscal Year Ended Sep 29, 2024 Oct 1, 2023 Oct 2, 2022

Fiscal Year Ended Sep 28, 2025 Sep 29, 2024 Oct 1, 2023

Net earnings attributable to Starbucks $ 1,856.4 $ 3,760.9 $ 4,124.5

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Segment Reporting

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.

We have three reportable operating segments:

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Most of our Channel Development revenues are from product sales to, and royalty revenues from, Nestlé through the Global Coffee Alliance.

Our CODM, who is our chief executive officer , evaluates the performance of our operating segments based primarily on net revenues and operating income, which represents earnings before other income and expenses and income taxes.

Financial information and forecasts are reviewed by our CODM at the segment level, and are used to evaluate performance, monitor actual results versus forecasts, and allocate resources for the consolidated entity.

Our CODM does not use total assets by segment as a basis for decision making.

The accounting policies of the operating segments are the same as those described in Note 1 , Summary of Significant Accounting Policies and Estimates.

Consolidated revenue mix by product type (in millions):

Fiscal Year Ended Sep 29, 2024 Oct 1, 2023 Oct 2, 2022

Fiscal Year Ended Sep 28, 2025 Sep 29, 2024 Oct 1, 2023

$ 22,539.9 61 % $ 21,883.9 60 % $ 21,684.8 60 %

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(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.

Information by geographic area ( in millions ):

Fiscal Year Ended Sep 29, 2024 Oct 1, 2023 Oct 2, 2022

Fiscal Year Ended Sep 28, 2025 Sep 29, 2024 Oct 1, 2023

Net revenues (1) :

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Total $ 37,184.4 $ 36,176.2 $ 35,975.6

Sep 29, 2024 Oct 1, 2023

Sep 28, 2025 Sep 29, 2024

Long-lived assets:

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Revenues from countries other than the U.S.

and China consist primarily of revenues from Japan, Canada, and the U.K., which together account for approximately 72 % of net revenues from other countries for fiscal 2024.

Management evaluates the performance of its operating segments based on net revenues and operating income.

The accounting policies of the operating segments are the same as those described in Note 1 , Summary of Significant Accounting Policies and Estimates.

Operating income represents earnings before other income and expenses and income taxes.

The identifiable assets by segment disclosed in this note are those assets specifically identifiable within each segment and include cash and cash equivalents, ROU assets, net property, plant and equipment, equity method and other equity investments, goodwill, and other intangible assets.

Assets not attributed to reportable operating segments are corporate assets and are primarily comprised of cash and cash equivalents available for general corporate purposes, investments, assets of the corporate headquarters and roasting facilities, inventory, and deferred tax assets.

The financial information below is presented for our reportable operating segments and Corporate and Other for the fiscal years ended September 29, 2024, October 1, 2023, and October 2, 2022, and as of September 29, 2024, and October 1, 2023.

and China consist primarily of revenues from Japan, Canada, and the U.K., which together account for approximately 73 %, 72 %, and 71 % of net revenues from other countries for fiscal years 2025, 2024, and 2023, respectively.

The financial information below is presented for our reportable operating segments and Corporate and Other for the fiscal years ended September 28, 2025, September 29, 2024, and October 1, 2023.

( in millions )

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Total net revenues $ 27,373.1 $ 7,819.9 $ 1,871.7 $ 119.7 $ 37,184.4

Product and distribution costs 7,628.7 2,749.8 1,168.3 111.4 11,658.2

Store operating expenses

13,973.3 3,085.6 — — 17,058.9

Other operating expenses 281.6 242.0 60.2 0.8 584.6

Depreciation and amortization expenses 1,196.3 363.9 — 124.5 1,684.7

Income from equity investees — 3.6 297.6 — 301.2

General and administrative expenses 483.3 344.3 5.8 1,783.8 2,617.2

Restructuring and impairments 653.2 82.5 1.9 154.4 892.0

Total operating expenses

24,216.4 6,868.1 1,236.2 2,174.9 34,495.6

Income from equity method investees — ( 1.8 ) 249.6 — 247.8

Operating income/(loss) $ 3,156.7 $ 950.0 $ 885.1 $ ( 2,055.2 ) $ 2,936.6

Interest income and other, net 113.3

Interest expense ( 542.6 )

Earnings before income taxes $ 2,507.3

( in millions )

North America International Channel

Corporate and Other

Total net revenues $ 27,009.5 $ 7,338.9 $ 1,769.8 $ 58.0 $ 36,176.2

Product and distribution costs 7,478.0 2,575.2 1,075.4 52.0 11,180.6

Store operating expenses 12,467.1 2,819.4 — — 15,286.5

Other operating expenses 280.9 225.1 58.4 1.2 565.6

Depreciation and amortization expenses 1,052.4 338.3 — 121.9 1,512.6

Income from equity investees — 2.7 295.7 — 298.4

General and administrative expenses 375.8 338.8 7.7 1,801.0 2,523.3

Total operating expenses

21,654.2 6,296.8 1,141.5 1,976.1 31,068.6

Income from equity method investees — 3.6 297.6 — 301.2

Operating income/(loss) $ 5,355.3 $ 1,045.7 $ 925.9 $ ( 1,918.1 ) $ 5,408.8

Interest income and other, net 122.8

Interest expense ( 562.0 )

Earnings before income taxes $ 4,969.6

( in millions )

North America International Channel

Corporate and Other

Total net revenues $ 26,569.6 $ 7,487.6 $ 1,893.8 $ 24.6 $ 35,975.6

Product and distribution costs 7,530.4 2,608.4 1,250.1 20.2 11,409.1

Store operating expenses 11,959.2 2,761.1 — — 14,720.3

Other operating expenses 263.8 219.0 54.6 2.0 539.4

Depreciation and amortization expenses 910.1 335.1 0.1 117.3 1,362.6

Income from equity investees — 2.3 231.8 — 234.1

General and administrative expenses 389.7 335.8 8.4 1,707.4 2,441.3

Restructuring and impairments 20.7 — — 1.1 21.8

Total operating expenses

21,073.9 6,259.4 1,313.2 1,848.0 30,494.5

Income from equity method investees — 2.7 295.7 — 298.4

Other segment items (1)

— — 91.3 — 91.3

Operating income/(loss) $ 5,495.7 $ 1,230.9 $ 967.6 $ ( 1,823.4 ) $ 5,870.8

( in millions )

Interest income and other, net 81.2

Interest expense ( 550.1 )

Earnings before income taxes $ 5,401.9

(1) Includes gain from sale of assets.

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 by revitalizing coffeehouses, enhancing the customer experience, and improving efficiency.

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 fiscal year ended September 28, 2025 , 627 stores were closed and approximately $ 892.0 million was recorded to restructuring and impairments on our consolidated statement of earnings.

This total primarily consists of disposal and

impairment of company-operated store assets, employee separation benefits, and accelerated amortization of ROU lease assets and other lease exit costs.

The table below presents the restructuring and impairment charges by reportable operating segment and Corporate and Other (in millions):

Fiscal Year Ended September 28, 2025

North America International Channel

Corporate and Other

Total assets at September 29, 2024

Disposal and impairment of store assets $ 313.7 $ 39.1 $ — $ — $ 352.8

Employee severance, separation costs, and other

103.8 39.8 1.9 154.4 299.9

Total assets at October 1, 2023

Amortization of ROU lease assets and other lease exit costs

235.7 3.6 — — 239.3

Total Restructuring and impairment costs

$ 653.2 $ 82.5 $ 1.9 $ 154.4 $ 892.0

The table below presents the balance of liabilities related to the restructuring plan by major type of cost (in millions):

Fiscal Year Ended September 28, 2025 Employee severance, separation costs, and other

Lease exit and other related costs (1)

Beginning balance

Restructuring costs incurred

299.9 239.3 539.2

Cash payments

( 141.0 ) ( 0.4 ) ( 141.4 )

Ending balance

$ 158.9 $ 238.9 $ 397.8

(1) The total operating lease liability balance for restructuring store closures was $ 272.8 million as of September 28, 2025.

As of September 28, 2025 , the majority of the remaining accrued employee separation costs are reflected in accrued payroll and benefits and the remaining accrued lease-related costs are reflected in the operating lease liability on the consolidated balance sheet.

Inclusive of fiscal year 2025 charges, the Company estimates that it will incur approximately $ 1.0 billion in total pre-tax restructuring charges related to the “Back to Starbucks” restructuring plan announced in the fourth quarter of fiscal 2025, in addition to the $ 137 million incurred resulting from restructuring activities in the second and third quarters of fiscal 2025.

Estimated restructuring charges expected to be incurred in fiscal year 2026 are approximately $ 230 million, primarily related to accelerated ROU lease asset amortization and other lease exit costs in our North America and International operating segments.

We anticipate completion of the plan and store closures within fiscal year 2026.

The majority of the accrued liability balance as of September 28, 2025 related to restructuring charges is expected to be paid out in fiscal year 2026.

Subsequent Event

On October 14, 2024, we acquired 23.5 Degrees, a U.K.

licensed business partner, to expand our portfolio of company-operated stores and enhance the coffeehouse experience for customers.

The acquisition will convert 113 licensed stores to company-operated stores within our International operating segment.

O n November 3, 2025, we announced the Company has entered an agreement to form a joint venture with Boyu Capital, a leading alternative investment firm, to operate Starbucks retail in China.

We believe this partnership marks a significant milestone in Starbucks ongoing transformation and underscores its commitment to accelerating long-term growth in China.

Under the agreement, Boyu Capital will acquire up to a 60 % interest in Starbucks retail operations in China.

Starbucks will retain a 40 % interest in the joint venture and will continue to own and license the Starbucks brand and intellectual property to the new entity.

Boyu Capital will acquire its interest based on a cash-free, debt-free mutually agreed-upon total enterprise value of approximately $ 4 billion , to be further adjusted for other contractually agreed-upon items.

The transaction is subject to required regulatory a pprovals as we ll as customary closing conditions, and is expected to close by early calendar year 2026.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Starbucks Corporation and subsidiaries (the “Company”) as of September 29, 2024, and October 1, 2023, the related consolidated statements of earnings, comprehensive income, equity, and cash flows, for each of the three years in the period en ded September 29, 2024 , and the related notes (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 29, 2024, and October 1, 2023 , and the results of its operations and its cash flows for each of the three years in the period ended September 29, 2024 , in conformity with accounting principles generally accepted in the United States of America.

We have audited the accompanying consolidated balance sheets of Starbucks Corporation and subsidiaries (the “Company”) as of September 28, 2025, and September 29, 2024, the related consolidated statements of earnings, comprehensive income, equity, and cash flows, for each of the three years in the period en ded September 28, 2025 , and the related notes (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 28, 2025, and September 29, 2024 , and the results of its operations and its cash flows for each of the three years in the period ended September 28, 2025 , in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of September 28, 2025 , based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated November 14, 2025, expresse d an unqualified opinion on the Company’s internal control over financial reporting.

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The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Goodwill Impairment Assessments for China Reporting Unit – Refer to Note 8 to the financial statements

Goodwill Impairment Assessments for China Reporting Unit – Refer to Note 1 and Note 8 to the financial statements

Critical Audit Matter Description

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The Company ’ s evaluation of goodwill for impairment involves comparing the estimated fair value of a reporting unit to its carrying value.

The estimated fair value of a reporting unit is determined using both income and market approaches, combined with an equal weighting.

The income approach is based on discounted future cash flows and requires significant assumptions, including estimates regarding future revenue and cash flow projections, and discount rates.

The market approach is based on comparable company multiples (revenue and “EBITDA,” which stands for earnings before interest, income taxes, depreciation, and amortization) and requires an estimate of multiples derived from comparable publicly traded companies to the reporting unit.

The estimated fair value of a reporting unit is determined using both income and market approaches.

The income approach is based on discounted future cash flows and requires management to make assumptions and to apply judgment when estimating future cash flows and asset fair values, including projected revenue growth, forecasted operating expenses, and the selection of an appropriate discount rate.

The market approach is based on comparable company valuation multiples and requires an estimate of those multiples derived from comparable publicly traded companies to the reporting unit.

Changes in these estimates and assumptions could have a significant impact on either the fair value, the amount of any goodwill impairment charge, if any, or both.

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We identified the goodwill impairment assessment of the China reporting unit as a critical audit matter because of the significant estimates and assumptions management made to determine the fair value.

The audit of these estimates and assumptions required a high degree of auditor judgment when performing audit procedures to evaluate the reasonableness of management ’ s estimates and assumptions related to revenue and cash flow projections, and the selection of significant valuation assumptions such as comparable company revenue and EBITDA multiples and discount rates.

The audit of these estimates and assumptions required a high degree of auditor judgment when performing audit procedures to evaluate the reasonableness of management ’ s estimates and assumptions related to revenue and expense projections, and the selection of significant valuation assumptions such as comparable company valuation multiples and discount rates.

The audit also required an increased extent of effort, including the need to involve our fair value specialists.

How the Critical Matter Was Addressed in the Audit

Our audit procedures related to revenue and cash flow projections and the selection of significant valuation assumptions, such as comparable company revenue and EBITDA multiples and discount rates, for the China reporting unit included the following:

• We tested the effectiveness of controls over management’s goodwill impairment evaluation, including the determination of the fair value of the China reporting unit, such as controls related to management ’ s forecasts and the selection of the discount rate and market multiples used.

Our audit procedures related to revenue and expense projections and the selection of significant valuation assumptions, such as comparable company valuation multiples and discount rates, for the China reporting unit included the following:

• We inquired of senior executives of the Company to corroborate strategic plans for growth.

• We evaluated management ’ s ability to accurately forecast by comparing actual results to management ’ s historical forecasts.

• We performed a sensitivity analysis of the revenue growth rate, EBITDA margin, and discount rates, which included their impact on cash flows.

• We performed a sensitivity analysis of the revenue growth rate, forecasted operating expenses, and discount rates, which included their impact on cash flows.

• We evaluated the reasonableness of management ’ s forecasts by comparing the forecasts to (1) historical results, (2) internal communications amongst management and the Board of Directors, (3) inquiry with personnel outside of finance and accounting, and (4) forecasted information included in analyst and industry reports relevant to the China reporting unit.

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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-K

Item 8. Financial Statements and Supplementary Data