What changed in this filing

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Item 1. Financial Statements

2026-01-28 compared with 2025-07-29 · 282 added, 257 removed, 580 unchanged (48% of the section changed)

3 unchanged sentences

(in millions, except per share data, unaudited)

Quarter Ended Three Quarters Ended

Quarter Ended

Net revenues:

8 unchanged sentences

General and administrative expenses 638.8 665.8

Restructuring 20.8 — 137.0 —

Restructuring and impairments

Total operating expenses 9,084.9 8,322.6

7 unchanged sentences

Net earnings/(loss) attributable to noncontrolling interests

0.2 0.9 0.3 1.0

Net earnings attributable to Starbucks $ 293.3 $ 780.8

8 unchanged sentences

(in millions, unaudited)

Quarter Ended Three Quarters Ended

Quarter Ended

Net earnings including noncontrolling interests $ 293.2 $ 780.9

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

Other comprehensive income/(loss):

Unrealized holding gains/(losses) on available-for-sale debt securities 0.7 ( 2.1 )

5 unchanged sentences

Translation adjustment and other 21.3 ( 311.5 )

Tax (expense)/benefit — ( 0.2 ) — ( 3.8 )

Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale securities, hedging instruments, translation adjustment, and other ( 33.8 ) ( 66.9 )

Tax expense/(benefit) 8.5 18.6

Other comprehensive income/(loss) ( 6.2 ) 13.5 ( 106.4 ) 170.2

Other comprehensive income/(loss), net of tax

33.4 ( 154.8 )

Comprehensive income including noncontrolling interests 326.6 626.1

Comprehensive income/(loss) attributable to noncontrolling interests

0.3 0.9 0.1 1.0

Comprehensive income attributable to Starbucks $ 326.6 $ 626.3

9 unchanged sentences

Prepaid expenses and other current assets 374.1 452.2

Assets held for sale

Total current assets 12,022.6 7,382.3

16 unchanged sentences

Current portion of long-term debt 1,499.5 1,498.9

Liabilities held for sale

Total current liabilities 11,486.6 10,210.4

19 unchanged sentences

(in millions, unaudited)

Three Quarters Ended

Quarter Ended

OPERATING ACTIVITIES:

7 unchanged sentences

Non-cash lease costs 352.8 493.7

Loss on retirement and impairment of assets 143.0 62.9

Loss on disposal, impairment, and accelerated amortization of assets 109.7 40.9

Other 5.4 ( 7.0 )

19 unchanged sentences

Repayments of short-term debt — ( 5.4 )

Net proceeds from issuance of long-term debt 1,748.5 1,995.3

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

Proceeds from issuance of common stock 17.7 17.1

Cash dividends paid ( 705.1 ) ( 691.9 )

Repurchase of common stock — ( 1,266.7 )

Minimum tax withholdings on share-based awards ( 58.1 ) ( 74.6 )

Other ( 9.2 ) ( 10.6 )

Net cash used in financing activities ( 743.0 ) ( 754.8 )

Effect of exchange rate changes on cash and cash equivalents 9.0 ( 76.8 )

Net change in cash balances classified as assets held for sale ( 347.2 ) —

Net increase/(decrease) in cash and cash equivalents 193.6 385.2

9 unchanged sentences

CONSOLIDATED STATEMENTS OF EQUITY

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

For the Quarter Ended December 28, 2025 and December 29, 2024

(in millions, except per share data, unaudited)

6 unchanged sentences

Shares Amount

Balance, March 30, 2025

Balance, September 28, 2025

1,136.9 $ 1.1 $ 634.1 $ ( 8,272.5 ) $ ( 459.3 ) $ ( 8,096.6 ) $ 7.4 $ ( 8,089.2 )

7 unchanged sentences

— — — — 0.1 0.1 — 0.1

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, 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 income — — — — 13.5 13.5 — 13.5

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

Exercise of stock options/vesting of RSUs 0.2 — 3.9 — — 3.9 — 3.9

Sale of common stock 0.2 — 12.9 — — 12.9 — 12.9

Repurchase of common stock (1)

— — 0.3 — — 0.3 — 0.3

Cash dividends declared, $ 0.57 per share

— — — ( 645.6 ) — ( 645.6 ) — ( 645.6 )

Other — — — — — — ( 0.1 ) ( 0.1 )

Balance, June 30, 2024

Balance, December 28, 2025

1,139.1 $ 1.1 $ 721.5 $ ( 8,685.4 ) $ ( 425.9 ) $ ( 8,388.7 ) $ 7.4 $ ( 8,381.3 )

(1) Includes excise tax on share repurchases.

See Notes to Consolidated Financial Statements.

STARBUCKS CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY

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

(in millions, except per share data, unaudited)

Common Stock Additional Paid-in Capital Retained

Earnings/(Deficit) Accumulated

Comprehensive

Income/(Loss) Shareholders’

Equity/(Deficit) Noncontrolling

Interests Total

Shares Amount

Balance, September 29, 2024

1 unchanged sentence

Net earnings — — — 780.8 — 780.8 0.1 780.9

Other comprehensive loss — — — — ( 106.2 ) ( 106.2 ) ( 0.2 ) ( 106.4 )

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

Stock-based compensation expense — — 102.1 — — 102.1 — 102.1

4 unchanged sentences

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

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, 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 — — — 2,851.7 — 2,851.7 1.0 2,852.7

Other comprehensive income — — — — 170.2 170.2 — 170.2

Stock-based compensation expense — — 239.4 — — 239.4 — 239.4

Exercise of stock options/vesting of RSUs 2.8 — ( 61.0 ) — — ( 61.0 ) — ( 61.0 )

Sale of common stock 0.5 — 42.1 — — 42.1 — 42.1

Repurchase of common stock (1)

( 12.8 ) — ( 35.6 ) ( 1,223.9 ) — ( 1,259.5 ) — ( 1,259.5 )

Cash dividends declared, $ 1.71 per share

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

Balance, June 30, 2024

Balance, December 29, 2024

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

(1) Includes excise tax on share repurchases.

See Notes to Consolidated Financial Statements.

2 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

7 unchanged sentences

Note 12 Employee Stock Plans

Note 13 Income Taxes

Note 14 Earnings per Share

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Summary of Significant Accounting Policies and Estimates

Summary of Significant Accounting Policies

Financial Statement Preparation

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.

The unaudited consolidated financial statements as of December 28, 2025, and for the quarters ended December 28, 2025 and December 29, 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 ended December 28, 2025 and December 29, 2024 reflects all adjustments and accruals, which are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods.

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

Segment information is prepared on the same basis that our chief executive officer, who is our Chief Operating Decision Maker, manages the segments, evaluates financial results, and makes key operating decisions.

Segment information is prepared on the same basis that our chief executive officer, who is our Chief Operating Decision Maker (“CODM”), manages the segments, evaluates financial results, and makes key operating decisions.

The financial information as of September 28, 2025 is derived from our audited consolidated financial statements and notes for the fiscal year ended September 28, 2025 (“fiscal 2025”) included in Item 8 in the fiscal 2025 Annual Report on Form 10-K filed with the SEC on November 14, 2025 (“10-K”).

The information included in this 10-Q should be read in conjunction with the footnotes and management’s discussion and analysis of the consolidated financial statements in the 10-K.

The results of operations for the quarter and three quarters ended June 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

In November 2023, the Financial Accounting Standards Board (“FASB”) issued guidance expanding segment disclosure requirements.

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

The results of operations for the quarter ended December 28, 2025 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending September 27, 2026 (“fiscal 2026”).

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 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 17 , Restructuring, for further discussion.

Assets Held for Sale

We classify long-lived assets or disposal groups as held for sale in the period when all of the following conditions have been met:

• we have approved and committed to a plan to sell the assets or disposal group;

• the asset or disposal group is available for immediate sale in its present condition;

• an active program to locate a buyer and other actions required to complete the sale have been initiated;

• the sale of the asset or disposal group is probable and expected to be completed within one year;

• the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value;

• it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

We initially measure a long-lived asset or disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell and recognize any loss in the period in which the held-for-sale criteria are met.

Gains are not recognized until the date of sale.

We cease depreciation and amortization of a long-lived asset, or assets within a disposal group, upon their designation as held for sale and subsequently assess fair value less any costs to sell at each reporting period until the asset or disposal group is no longer classified as held for sale.

In the first quarter of fiscal 2026, the company announced an agreement to form a joint venture with Boyu Capital to operate Starbucks retail in China (the “disposal group”).

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.

We classified the assets and liabilities of the disposal group as held for sale on the consolidated balance sheets, which required us to cease property, plant, and equipment depreciation and operating lease right-of-use (“ROU”) asset amortization of the related long-lived assets, resulting in reduced depreciation and amortization and store operating expenses.

We also changed our indefinite reinvestment assertions upon classification as held for sale, resulting in an increase in our income tax expense.

No impairment was recorded upon the classification of the disposal group as held for sale.

Refer to Note 2 , Acquisitions and Divestitures, for further discussion.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

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 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 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.

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

Refer to Note 16 , 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.

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 ending 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

O n November 3, 2025, we announced that the Company entered into an agreement to form a joint venture with Boyu Capital, to operate Starbucks retail in China.

We believe this partnership marks a significant milestone in the Company’s 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.

The partial divestiture is expected to result in the conversion of 8,011 company-operated stores to licensed stores within our International segment.

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.

In the first quarter of 2026, we determined that the disposal group met the held-for-sale criteria.

Accordingly, we have presented the assets and liabilities of the disposal group as held for sale on the consolidated balance sheets.

As of December 28, 2025, the net carrying amounts of the major classes of assets and liabilities of the disposal group were as follows ( in millions ):

Cash and cash equivalents $ 347.2

Accounts receivable, net 60.3

Inventories 101.6

Prepaid expenses and other current assets 52.5

Property, plant and equipment, net 875.3

Operating lease, right-of-use asset 1,037.4

Deferred income taxes, net 113.1

Other long-term assets 56.1

Goodwill 2,073.1

Assets held for sale $ 4,716.6

Accounts payable $ 129.0

Accrued liabilities 148.4

Accrued payroll and benefits 110.7

Current portion of operating lease liability 227.5

Stored value card liability and current portion of deferred revenue 197.7

Short-term debt

Operating lease liability 854.1

Deferred revenue

Other long-term liabilities 67.3

Liabilities held for sale $ 1,754.6

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

2 unchanged sentences

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.

Assets acquired primarily include operating lease ROU 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.

The transaction was not material to our consolidated financial statements.

Derivative Financial Instruments

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

Jun 29, 2025 Sep 29, 2024

Dec 28, 2025 Sep 28, 2025

Cash Flow Hedges:

Coffee $ 11.0 $ 23.3 $ 11.0 5

Cross-currency swaps — 0.5 — 0

Dairy — 2.0 — 0

Foreign currency - other 20.4 19.0 13.4 34

10 unchanged sentences

Location of gain/(loss)

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

Cash Flow Hedges:

Coffee $ ( 49.6 ) $ 10.6 $ 17.0 $ ( 10.7 ) Product and distribution costs

Cross-currency swaps — 2.3 — 0.3 Interest expense

— 1.8 Interest income and other, net

Dairy — 1.6 — ( 0.6 ) Product and distribution costs

Foreign currency - other ( 32.9 ) 23.9 4.0 8.3 Licensed stores revenue

3.5 2.1 Product and distribution costs

Interest rates ( 1.3 ) — ( 1.0 ) ( 1.0 ) Interest expense

Net Investment Hedges:

Cross-currency swaps (1)

( 77.4 ) 114.0 27.0 14.2 Interest expense

Foreign currency debt — — — —

Three Quarters Ended

Gains/(Losses) Recognized in

OCI Before Reclassifications Gains/(Losses) Reclassified from

AOCI to Earnings Location of gain/(loss)

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

Dec 28, 2025 Dec 29, 2024 Dec 28, 2025 Dec 29, 2024

Cash Flow Hedges:

Coffee $ ( 14.2 ) $ 12.8 $ 0.2 $ 27.7 Product and distribution costs

Cross-currency swaps 0.9 4.7 — 1.3 Interest expense

1.4 2.4 Interest income and other, net

Cross-currency swaps — 0.9 — 0.8 Interest income and other, net

Dairy — ( 1.1 ) — 1.4 Product and distribution costs

5 unchanged sentences

55.4 207.5 26.7 27.7 Interest expense

Foreign currency debt — ( 6.3 ) — —

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

1 unchanged sentence

Gains/(Losses) Recognized in Earnings

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

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

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

Dec 28, 2025 Dec 29, 2024

Non-Designated Derivatives:

7 unchanged sentences

Notional amounts of outstanding derivative contracts (in millions) :

Jun 29, 2025 Sep 29, 2024

Dec 28, 2025 Sep 28, 2025

Coffee $ 205 $ 387

5 unchanged sentences

Derivative Assets

Balance Sheet Location Jun 29, 2025 Sep 29, 2024

Balance Sheet Location Dec 28, 2025 Sep 28, 2025

Designated Derivative Instruments (1) :

Cross-currency swaps Prepaid expenses and other current assets

Other long-term assets 185.2 177.4

Dairy Prepaid expenses and other current assets — 0.8

Cross-currency swaps Other long-term assets 349.5 271.9

Foreign currency - other Prepaid expenses and other current assets 15.9 13.0

1 unchanged sentence

Non-designated Derivative Instruments:

Dairy Prepaid expenses and other current assets — 0.3

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

1 unchanged sentence

Derivative Liabilities

Balance Sheet Location Jun 29, 2025 Sep 29, 2024

Balance Sheet Location Dec 28, 2025 Sep 28, 2025

Designated Derivative Instruments:

5 unchanged sentences

Non-designated Derivative Instruments:

Diesel fuel and other commodities Accrued liabilities 0.2 0.3

Foreign currency Accrued liabilities 2.0 1.1

Other long-term liabilities — 0.2

(1) We also hold cash and cash equivalents from various settled-to-market exchange traded futures related to coffee and dairy hedging.

(1) We also hold cash and cash equivalents from various settled-to-market exchange traded futures related to coffee hedging.

The following amounts were recorded on the consolidated balance sheets related to fixed-to-floating interest rate swaps designated in fair value hedging relationships ( in millions ):

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

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

Dec 28, 2025 Sep 28, 2025 Dec 28, 2025 Sep 28, 2025

Location on the balance sheet

4 unchanged sentences

Fair Value Measurements at Reporting Date Using

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

December 28, 2025 Quoted Prices in Active Markets for Identical Assets

(Level 1) Significant Other Observable Inputs

8 unchanged sentences

Total available-for-sale debt securities 85.3 28.9 44.3 12.1

Structured deposits 84.0 — 84.0 —

Marketable equity securities 99.6 99.6 — —

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Fair Value Measurements at Reporting Date Using

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

Balance at September 28, 2025 Quoted Prices in Active Markets for Identical Assets

(Level 1) Significant Other Observable Inputs

5 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 deposits 0.2 — 0.2 —

Total long-term investments 246.9 36.3 183.9 26.7

9 unchanged sentences

The fair values of any financial instruments presented above exclude the impact of netting assets and liabilities when a legally enforceable master netting agreement exists.

Gross unrealized holding gains and losses on available-for-sale debt securities, structured deposits, and marketable equity securities were not material as of June 29, 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 December 28, 2025 and September 28, 2025.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Assets and liabilities recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as property, plant and equipment, right-of-use assets, goodwill and other intangible assets, equity and other investments, and other assets.

Assets and liabilities recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as property, plant and equipment, ROU assets, goodwill and other intangible assets, equity and other investments, and other assets.

These assets are measured at fair value if determined to be impaired.

The estimated fair value of our long-term debt based on the quoted market price (Level 2) is included at Note 8 , Debt.

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

There were no material fair value adjustments during the quarters ended December 28, 2025 and December 29, 2024.

Inventories (in millions) :

Jun 29, 2025 Sep 29, 2024

Dec 28, 2025 (2)

Unroasted $ 990.6 $ 911.2

5 unchanged sentences

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

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.

(2) The fiscal year 2026 balances exclude Starbucks retail operations in China that were classified as held for sale.

As of December 28, 2025, we had committed to purchasing green coffee totaling $ 382 million under fixed-price contracts and an estimated $ 879 million under price-to-be-fixed contracts.

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

7 unchanged sentences

Property, Plant and Equipment, net

Jun 29, 2025 Sep 29, 2024

Dec 28, 2025 (1)

Land $ 55.0 $ 54.9

9 unchanged sentences

Property, plant and equipment, net $ 7,399.5 $ 8,493.5

(1) The fiscal year 2026 balances exclude Starbucks retail operations in China that were classified as held for sale.

Accrued Liabilities

Jun 29, 2025 Sep 29, 2024

Dec 28, 2025 (1)

Accrued occupancy costs $ 59.6 $ 89.5

5 unchanged sentences

Total accrued liabilities $ 2,334.3 $ 2,359.7

(1) The fiscal year 2026 balances exclude Starbucks retail operations in China that were classified as held for sale.

Store Operating Expenses

Quarter Ended Three Quarters Ended

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

Quarter Ended

Dec 28, 2025 Dec 29, 2024

Wages and benefits $ 2,658.7 $ 2,389.1

4 unchanged sentences

Indefinite-Lived Intangible Assets

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

(in millions) Dec 28, 2025 Sep 28, 2025

Trade names, trademarks and patents $ 79.5 $ 79.5

Finite-Lived Intangible Assets

Jun 29, 2025 Sep 29, 2024

Dec 28, 2025 Sep 28, 2025

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

Acquired and reacquired rights (1)

$ 319.0 $ ( 239.8 ) $ 79.2 $ 1,053.9 $ ( 974.9 ) $ 79.0

Acquired trade secrets and processes 27.6 ( 27.6 ) — 27.6 ( 27.6 ) —

3 unchanged sentences

Total finite-lived intangible assets $ 493.4 $ ( 405.7 ) $ 87.7 $ 1,246.2 $ ( 1,158.9 ) $ 87.3

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 ):

(1) The decrease in acquired and reacquired rights was a result of Starbucks retail operations in China being classified as held for sale.

Amortization expense for finite-lived intangible assets was $ 1.5 million for the quarter ended December 28, 2025 and $ 5.6 million for the quarter ended December 29, 2024, respectively.

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

Fiscal Year Total

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

2026 (excluding the quarter ended December 28, 2025)

Thereafter 61.8

4 unchanged sentences

$ 490.6 $ 2,842.6 $ 34.7 $ 1.0 $ 3,368.9

Acquisition (1)

Planned divestiture (1)

— ( 2,073.1 ) — — ( 2,073.1 )

0.5 14.8 — — 15.3

Goodwill balance at June 29, 2025

Goodwill balance at December 28, 2025

$ 491.1 $ 784.3 $ 34.7 $ 1.0 $ 1,311.1

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

(1) The decrease in the International segment was a result of Starbucks retail operations in China being classified as held for sale.

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

Revolving Credit Facility

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 .

Our $ 3.0 billion unsecured five-year revolving credit facility (the “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.

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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 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.

As of December 28, 2025, we were in compliance with all applicable covenants.

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

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.

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.

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

Our total available contractual borrowing capacity for general corporate purposes was $ 3.0 billion as of the end of our first quarter of fiscal 2026.

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

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

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

As of December 28, 2025 and September 28, 2025, we had no borrowings outstanding under these credit facilities.

Long-term Debt

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

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

Dec 28, 2025 Sep 28, 2025 Stated Interest Rate Effective Interest Rate (1)

Issuance Amount Estimated Fair Value Amount Estimated Fair Value

August 2025 notes $ 1,250.0 $ 1,248.7 $ 1,250.0 $ 1,243.4 3.800 % 3.721 %

February 2026 notes $ 1,000.0 $ 1,000.7 $ 1,000.0 $ 1,001.7 4.750 % 4.788 %

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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 June 29, 2025 by fiscal year ( in millions ):

The following table summarizes our long-term debt maturities as of December 28, 2025 by fiscal year ( in millions ):

Fiscal Year Total

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

2026 (excluding the quarter ended December 28, 2025)

Thereafter 8,850.0

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The components of lease costs (in millions) :

Quarter Ended Three Quarters Ended

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

Quarter Ended

Dec 28, 2025 Dec 29, 2024

Operating lease costs (1)

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The following table includes supplemental information (in millions) :

Three Quarters Ended

Jun 29, 2025 Jun 30, 2024

Quarter Ended

Dec 28, 2025 Dec 29, 2024

Cash paid related to operating lease liabilities $ 523.6 $ 468.4

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

1,489.0 1,548.7

Jun 29, 2025 Jun 30, 2024

Weighted-average remaining operating lease term 8.6 years 8.6 years

Operating lease liabilities arising from obtaining ROU assets (1)

Dec 28, 2025 Dec 29, 2024

Weighted-average remaining operating lease term (1)

8.7 years 8.6 years

Weighted-average operating lease discount rate (1)

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

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

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.

(1) The fiscal year 2026 amounts exclude Starbucks retail operations in China that were classified as held for sale and the fiscal year 2025 amounts include leases obtained in the acquisition of 23.5 Degrees Topco Limited.

Finance lease assets are recorded in property, plant and equipment, net or assets held for sale, and the corresponding lease liabilities are included in accrued liabilities or liabilities held for sale on the consolidated balance sheets.

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

Finance lease costs were also immaterial for the quarters ended December 28, 2025 and December 29, 2024.

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

Fiscal Year Total (1)

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

2026 (excluding the quarter ended December 28, 2025)

Thereafter 4,509.1

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Total $ 9,390.5

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.

(1) Balances exclude Starbucks retail operations in China that were classified as held for sale.

As of December 28, 2025, we have entered into operating leases that have not yet commenced of $ 639.0 million, primarily related to real estate leases.

These leases will commence between fiscal year 2026 and fiscal year 2030 with lease terms ranging from 5 to 20 years.

Lease exit costs associated with our restructuring efforts primarily relate to the closure of certain Starbucks company-operated stores.

Total lease exit costs of $48.9 million were recorded in restructuring and impairments on the consolidated statement of earnings in the first quarter of fiscal 2026.

See Note 17 , Restructuring, for further discussion.

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 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 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.

As of December 28, 2025 and 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.

During each of the quarters ended December 28, 2025 and December 29, 2024, we recognized $ 44.1 million of prepaid royalty revenue related to Nestlé.

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

Quarter Ended June 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

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

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

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

Three Quarters Ended June 29, 2025

Quarter Ended December 28, 2025

Stored value cards and loyalty program at September 28, 2025

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Revenue recognized - card and Stars redemptions and breakage ( 3,823.6 )

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

Planned divestiture (2)

Stored value cards and loyalty program at December 28, 2025 (3)

Quarter Ended December 29, 2024

Stored value cards and loyalty program at September 29, 2024

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

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

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

Stored value cards and loyalty program at December 29, 2024 (3)

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

(2) As of June 29, 2025 and June 30, 2024, approximately $ 1.7 billion and $ 1.6 billion, respectively, of these amounts were current.

(2) The decrease was a result of Starbucks retail operations in China being classified as held for sale.

(3) As of December 28, 2025 and December 29, 2024, approximately $ 1.9 billion and $ 2.1 billion, respectively, of these amounts were current.

Changes in AOCI by component, net of tax (in millions) :

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

June 29, 2025

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

Net gains/(losses) recognized in OCI before reclassifications 1.4 ( 68.0 ) ( 58.0 ) 157.6 33.0

Net (gains)/losses reclassified from AOCI to earnings 0.2 ( 19.3 ) ( 20.2 ) — ( 39.3 )

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 )

June 30, 2024

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

Net gains/(losses) recognized in OCI before reclassifications 0.8 29.5 85.2 ( 92.0 ) 23.5

Net (gains)/losses reclassified from AOCI to earnings 0.2 0.5 ( 10.6 ) ( 0.1 ) ( 10.0 )

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

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

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

June 29, 2025

December 28, 2025

Net gains/(losses) in AOCI, beginning of period $ 0.5 $ 40.9 $ 357.4 $ ( 858.1 ) $ ( 459.3 )

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Net gains/(losses) in AOCI, end of period $ 1.2 $ 30.9 $ 378.8 $ ( 836.8 ) $ ( 425.9 )

June 30, 2024

December 29, 2024

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

8 unchanged sentences

the Statements of Earnings

Jun 29, 2025 Jun 30, 2024

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

Gains/(losses) on cash flow hedges 23.5 0.2 Please refer to Note 3 , Derivative Financial Instruments for additional information.

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

( 11.0 ) ( 4.2 ) Tax (expense)/benefit

$ 39.3 $ 10.0 Net of tax

Three Quarters Ended

Components Amounts Reclassified from AOCI Affected Line Item in

the Statements of Earnings

Jun 29, 2025 Jun 30, 2024

Dec 28, 2025 Dec 29, 2024

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

1 unchanged sentence

Gains/(losses) on net investment hedges 26.7 27.7 Interest expense

Translation adjustment (1)

Other — 0.1 Interest income and other, net

33.8 66.9 Total before tax

1 unchanged sentence

$ 25.3 $ 48.3 Net of tax

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

In addition to 2.4 billion shares of authorized common stock with $ 0.001 par value per share, we have 7.5 million shares of authorized preferred stock, none of which was outstanding as of June 29, 2025.

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.

During the quarters ended December 28, 2025 and December 29, 2024 we made no share repurchases.

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

During the first quarter of fiscal 2026, our Board of Directors approved a quarterly cash dividend to shareholders of $ 0.62 per share to be paid on February 27, 2026 to shareholders of record as of the close of business on February 13, 2026.

Employee Stock Plans

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.

As of December 28, 2025, there we re 66.9 million shares of common stock available for issuance pursuant to future equity-based compensation awards and 8.9 million shares available for issuance under our employee stock purchase plan.

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

Quarter Ended Three Quarters Ended

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

Quarter Ended

Dec 28, 2025 Dec 29, 2024

Restricted Stock Units (“RSUs”) $ 126.1 $ 100.6

Options — ( 0.2 ) — ( 0.4 )

Total stock-based compensation expense $ 126.1 $ 100.6

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

Stock Options RSUs

Options outstanding/Nonvested RSUs, September 29, 2024

Granted — 4.6

Options exercised/RSUs vested ( 0.3 ) ( 3.1 )

RSU transactions from September 28, 2025 through December 28, 2025 ( in millions ):

Nonvested, September 28, 2025

Forfeited/expired ( 0.1 )

Options outstanding/Nonvested RSUs, June 29, 2025

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

Nonvested, December 28, 2025

Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of December 28, 2025

The effective tax rate for the quarter ended December 28, 2025 was 61.7 % compared to 23.6 % for the same period in fiscal 2025.

The increase was primarily due to the $266 million discrete impact of changes in indefinite reinvestment assertions as a result of classifying our Starbucks retail operations in China as held for sale in the first quarter of fiscal 2026 (approximately 3,500 basis points) and lapping the discrete impact of a tax status change for a certain foreign entity in the first quarter of fiscal 2025 (300 basis points).

Earnings per Share

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

Quarter Ended Three Quarters Ended

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

Quarter Ended

Dec 28, 2025 Dec 29, 2024

Net earnings attributable to Starbucks $ 293.3 $ 780.8

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Legal Proceedings

Starbucks is involved in various legal proceedings arising in the ordinary course of business, including litigation matters associated with labor union organizing efforts and certain employment litigation cases that have been certified as class or collective actions, but is not currently a party to any legal proceeding that management believes could have a material adverse effect on our consolidated financial position, results of operations, or cash flows.

Starbucks is involved in various legal proceedings arising in the ordinary course of business, including litigation matters associated with labor union organizing efforts and certain employment litigation cases that have been certified as class or collective actions, routine liability claims arising from alleged customer injuries, shareholder-related actions, and consumer fraud claims, but is not currently a party to any legal proceeding that management believes could have a material adverse effect on our consolidated financial position, results of operations, or cash flows.

While we are closely monitoring the operational and financial impacts of labor union organizing efforts on our business, as of the date of this filing, we believe the risk of a material contingent loss associated with these litigation matters is remote.

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Segment Reporting

We have three reportable operating segments:

1) North America, which is inclusive of the U.S.

2) International, which is inclusive of China, Japan, Asia Pacific, Europe, Middle East, Africa, Latin America, and the Caribbean;

and 3) Channel Development.

North America and International operations sell coffee and other beverages, complementary food, packaged coffees, single-serve coffee products, and a focused selection of merchandise through company-operated stores and licensed stores.

America segment is our most mature business and has achieved significant scale.

Certain markets within our International operations are in various stages of development and may require more extensive support, relative to their current levels of revenue and operating income, than our North America operations.

Channel Development revenues include packaged coffee, tea, foodservice products, and ready-to-drink beverage sales to customers outside of our company-operated and licensed stores.

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

Our CODM 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 in Part II, Item 8 of our most recently filed 10-K.

Consolidated revenue mix by product type ( in millions ):

Quarter Ended Three Quarters Ended

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

Quarter Ended

Dec 28, 2025 Dec 29, 2024

$ 5,944.2 60 % $ 5,678.0 60 %

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

The tables below present financial information for our reportable operating segments and Corporate and Other (in millions) :

Information by geographic area ( in millions ):

Quarter Ended Dec 28, 2025 Dec 29, 2024

Net revenues (1) :

United States $ 7,244.1 $ 6,981.2

Other countries 1,835.4 1,659.9

Total $ 9,915.1 $ 9,397.8

Dec 28, 2025 Sep 28, 2025

Long-lived assets:

United States $ 15,747.5 $ 15,952.7

173.9 4,276.8

Other countries 4,284.3 4,407.9

Total $ 20,205.7 $ 24,637.4

(1) Includes Channel Development segment and other net revenues.

(2) The fiscal year 2026 balance excludes Starbucks retail operations in China that were classified as held for sale.

No customer accounts for 10% or more of our revenues .

Revenues are shown based on the geographic location of our customers.

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 71 % and 73 % of net revenues from other countries for the first quarter ended December 28, 2025 and December 29, 2024 , respectively.

The financial information below is presented for our reportable operating segments and Corporate and Other (in millions) :

Quarter Ended

North America International Channel Development Corporate and Other Total

June 29, 2025

North America International Channel

Corporate and Other

December 28, 2025

Total net revenues $ 7,280.5 $ 2,064.9 $ 522.7 $ 47.0 $ 9,915.1

Depreciation and amortization expenses 303.5 91.4 — 32.7 427.6

Income/(loss) from equity investees

Product and distribution costs 2,135.5 748.1 352.6 37.4 3,273.6

Store operating expenses

3,785.1 767.2 — — 4,552.3

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

June 30, 2024

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

Other operating expenses 59.8 56.8 13.8 0.8 131.2

Depreciation and amortization expenses 298.8 70.1 — 32.0 400.9

Income/(loss) from equity investees

General and administrative expenses 94.3 96.0 1.2 447.3 638.8

Restructuring and impairments 40.0 43.6 0.3 4.2 88.1

Total operating expenses

6,413.5 1,781.8 367.9 521.7 9,084.9

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

Three Quarters Ended

North America International Channel Development Corporate and Other Total

June 29, 2025

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

Depreciation and amortization expenses 891.6 269.5 — 92.9 1,254.0

Income from equity investees — ( 2.1 ) 164.8 — 162.7

Income from equity method investees — ( 0.4 ) 61.0 — 60.6

Operating income/(loss) $ 867.0 $ 282.7 $ 215.8 $ ( 474.7 ) $ 890.8

June 30, 2024

Interest income and other, net 13.0

Interest expense ( 139.0 )

Earnings before income taxes $ 764.8

Quarter Ended

North America International Channel

Corporate and Other

December 29, 2024

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

Product and distribution costs 1,967.5 647.0 259.8 19.4 2,893.7

Store operating expenses 3,458.4 744.6 — — 4,203.0

Other operating expenses 78.4 60.7 13.4 — 152.5

Depreciation and amortization expenses 289.0 89.1 — 29.5 407.6

Income from equity investees — 2.9 194.9 — 197.8

General and administrative expenses 97.3 92.4 2.0 474.1 665.8

Restructuring and impairments

Total operating expenses

5,890.6 1,633.8 275.2 523.0 8,322.6

Income from equity method investees — ( 0.4 ) 46.9 — 46.5

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

Interest income and other, net 27.8

Interest expense ( 127.2 )

Earnings before income taxes $ 1,022.3

Restructuring

In the fourth quarter of fiscal 2024, we announced our “ Back to Starbucks ” strategy, which was implemented with the goal to bring customers back to our stores and return to growth.

As part of this strategy, during the second quarter of fiscal 2025 , we further decided and announced our plan to restructure our support organization in an effort to operate more efficiently, increase accountability, reduce complexity, and drive better integration, which resulted in a reduction in our support partner workforce.

During the quarter 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 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.

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.

During the first quarter of fiscal 2026, 165 stores were closed and approximately $ 88.1 million was recorded to restructuring and impairments on our consolidated statement of earnings.

This total consists of accelerated amortization of ROU lease assets and other lease exit costs, disposal and impairment of company-operated store assets, and employee severance, separation and other costs.

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

Quarter Ended December 28, 2025

North America International Channel

Corporate and Other

Disposal and impairment of store assets $ 24.8 $ — $ — $ — $ 24.8

Employee severance, separation and other costs 8.0 1.9 0.3 4.2 14.4

Amortization of ROU lease assets and other lease exit costs

7.2 41.7 — — 48.9

Total Restructuring and impairment costs

$ 40.0 $ 43.6 $ 0.3 $ 4.2 $ 88.1

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

Employee severance, separation and other costs

Lease exit and other related costs (1)

Beginning balance at September 28, 2025

$ 158.9 $ 238.9 $ 397.8

Restructuring costs incurred

14.4 48.9 63.3

Cash payments

( 103.3 ) ( 43.6 ) ( 146.9 )

Planned divestiture (2)

( 6.0 ) ( 5.1 ) ( 11.1 )

( 5.4 ) — ( 5.4 )

Ending balance at December 28, 2025

$ 58.6 $ 239.1 $ 297.7

(1) The operating lease liability balance for total stores under the restructuring plan was $ 284.6 million as of December 28, 2025.

(2) The decrease was a result of Starbucks retail operations in China being classified as held for sale.

(3) “Other” primarily consists of updates to accrual estimates.

As of December 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.

The Company estimates that it will incur approximatel y $ 140 million during the remainder of fiscal 2026, 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 restructuring plan and remaining store closures within fiscal year 2026.

The majority of the accrued liability balance as of December 28, 2025 relates to restructuring charges expected to be paid out by the end of fiscal year 2026.

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