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Item 2. Management’s Discussion and Analysis

2026-01-28 compared with 2025-07-29 · 134 added, 190 removed, 194 unchanged (63% of the section changed)

Management’s Discussion and Analysis of Financial Condition and Results of Operations

CAUTIONARY STATEMENT PURSUANT TO THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Certain statements contained herein are “forward-looking” statements within the meaning of applicable securities laws and regulations.

Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

This Interim Report on Form 10-Q includes certain“forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future events and the potential future results of Starbucks Corporation (together with its subsidiaries) that are based on our current expectations, estimates, forecasts, and projections about, among other things, our business, our results of operations, the industry in which we operate, our economic and market outlook, and the beliefs and assumptions of our management.

Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.

They often include words such as “believes,” “continues,” “expects,” “anticipates,” “forecasts,” “estimates,” “intends,” “plans,” “seeks,” or words of similar meaning, or future or conditional verbs, such as “will,” “should,” “could,” “would,” “may,” “aims,” “intends,” or “projects,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections.

Our forward-looking statements, and the risks and uncertainties related thereto, include, but are not limited to, those described under the “Risk Factors” and “Management ’ s Discussion and Analysis of Financial Condition and Results of Operations” sections of our most recently filed 10-K and 10-Q and in other reports we file with the SEC, as well as, among others:

• our ability to preserve, grow, and leverage our brands, including the risk of negative responses by consumers (such as boycotts or negative publicity campaigns), governmental actors (such as retaliatory or threatened legislative treatment or other actions), or other third parties who object to certain actions taken or not taken by the Company, whose responses could adversely affect our brand value;

• the impact of our marketing strategies, promotional and advertising plans, pricing strategies, platforms, reformulations, innovations, or customer experience initiatives or investments;

• the costs and risks associated with, and the successful and timely execution and effects of, our existing and any future business opportunities, expansions, initiatives, strategies, investments, and plans, including our “ Back to Starbucks ” plan;

Securities and Exchange Commission (“SEC”), as well as, among others:

• our ability to preserve, grow, and leverage our brands;

• the impact of our brand marketing, promotional, advertising, and pricing strategies, platforms, reformulations, innovations, or customer experience initiatives or investments;

• the costs and risks associated with, and the successful execution and effects of, strategic changes to our ownership and operating structure, including as a result of acquisitions, divestitures, other strategic transactions or entry into joint ventures, including our previously announced plans to form a joint venture with respect to Starbucks retail operations in China;

• our ability to align our investment efforts with our strategic goals;

• changes in consumer preferences, demand, consumption, or spending behavior, including due to shifts in demographic or health and wellness trends, reduction in discretionary spending and price increases, and our ability to anticipate or react to these changes;

• the ability of our business partners, suppliers, and third-party providers to fulfill their responsibilities and commitments;

• the potential negative effects of reported incidents involving food- or beverage-borne illnesses, tampering, adulteration, contamination, or mislabeling;

• our ability to open new stores and efficiently maintain the attractiveness of our existing stores;

• our dependence on the financial performance of our North America operating segment, and our increasing dependence on certain international markets;

• our anticipated cash requirements and operating expenses, including our anticipated total capital expenditures;

• inherent risks of operating a global business, including changing conditions in our markets, local factors affecting store openings, protectionist trade or foreign investment policies, such as imposed or threatened to be imposed tariffs and other trade controls, economic or trade sanctions, compliance with local laws and other regulations, and local labor policies and conditions, including labor strikes and work stoppages;

• higher costs, lower quality, or unavailability of coffee, dairy, cocoa, energy, water, raw materials, or product ingredients;

• the potential impact on our supply chain and operations of adverse weather conditions, natural disasters, or significant increases in logistics costs;

• evolving consumer preferences, demand, consumption, or spending behavior, reduction in discretionary spending and price increases, and our ability to anticipate or react to these changes;

• the ability of our business partners, suppliers, and third-party providers to fulfill their responsibilities and commitments and our reliance on certain key business partners and suppliers;

• the potential negative effects of food or beverage safety incidents, or product recalls, and any perceived association with such incidents;

• our ability to open new stores and efficiently maintain the attractiveness of our existing stores and manage related costs;

• our heavy reliance on the financial performance of our North America operating segment and our dependence on the performance and growth of certain international markets;

• our ability to operate and successfully expand our footprint in international markets, which is influenced by factors distinct from our North America operating segment;

• inherent risks of operating a global business, including changing conditions in our markets, local factors affecting store openings, protectionist trade or foreign investment policies, such as tariffs and import/export regulations, economic or trade sanctions, compliance with local laws and other regulations, and local labor policies and conditions, including labor strikes and work stoppages;

• higher costs, lower quality, or unavailability of coffee, dairy, cocoa, energy, water, raw materials, or product ingredients and related volatility;

• the ability of our supply chain to meet current or future business needs and our ability to scale and improve our forecasting, planning, production, and logistics management;

• a worsening in the terms and conditions upon which we engage with our manufacturers and source suppliers, whether resulting from broader local or global conditions or dynamics specific to our relationships with such parties;

• the impact of unfavorable global or regional economic conditions and related economic slowdowns or recessions, low consumer confidence, high unemployment, weak credit or capital markets, budget deficits, burdensome government debt, austerity measures, higher interest rates, higher taxes, international trade disputes, government restrictions, geopolitical instability, higher inflation, or deflation;

• failure to meet our announced guidance or market expectations and the impact thereof;

• failure to attract or retain key executive or partner talent or successfully onboard or transition executives;

• the impacts of partner investments, business transformation initiatives, including those related to our workforce, and changes in the availability and cost of labor, including any union organizing efforts and our responses to such efforts;

• the impact of foreign currency translation, particularly a stronger U.S.

• the potential impact on our supply chain and operations of adverse weather conditions, natural disasters, or significant increases in logistics costs;

• a worsening in the terms and conditions upon which we engage with our manufacturers and source suppliers;

• the impact of unfavorable macroeconomic conditions and other factors, including economic slowdowns or recessions, rising real estate costs, supply chain disruptions, climate change and extreme weather events, inflation and interest rate fluctuations, government shutdowns, labor unrest, geopolitical instability, disruptions in credit markets and foreign current exchange rate volatility;

• failure to meet market expectations for our financial performance or any announced guidance and the impact thereof;

• failure to attract or retain key executive or partner talent;

• changes in the availability and cost of labor, including any union organizing efforts and our responses to such efforts;

• the impact of, and our ability to respond to, substantial competition from new entrants, consolidations by competitors, and other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods), marketing, category expansion, product introductions, or entry or expansion in our geographic markets;

• potential impacts of climate change;

• evolving corporate governance and public disclosure regulations and expectations;

• the potential impact of activist shareholder actions or tactics;

• failure to comply with applicable laws and changing legal and regulatory requirements;

• failure to comply with applicable laws and complex and changing legal and regulatory requirements, including in privacy and data protection;

• the impact or likelihood of significant legal disputes and proceedings or government investigations;

• the unauthorized access, use, theft, or destruction of our data, or of our proprietary or confidential information and the impact thereof;

• potential negative effects of, and our ability to respond to, a material failure, inadequacy, or interruption of our information technology systems or those of our third-party business partners or service providers, or failure to comply with data protection laws;

• our ability to adequately protect our intellectual property or adequately ensure that we are not infringing the intellectual property of others.

In addition, many of the foregoing risks and uncertainties are, or could be, exacerbated by any worsening of the global business and economic environment.

In addition, many of the foregoing risks and uncertainties are, or could be, exacerbated by any worsening of the global business and economic environment, and new risks periodically emerge.

A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur.

Actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not place undue reliance on the forward-looking statements, which speak only as of the date of this report.

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Starbucks is the premier roaster, marketer, and retailer of specialty coffee globally, with a presence in 90 markets worldwide.

As of June 29, 2025, Starbucks had more than 41,000 company-operated and licensed stores, an increase of 4% from the prior year.

As of December 28, 2025, Starbucks had more than 41,000 company-operated and licensed stores, an increase of 1% from the prior year.

Additionally, we sell a variety of consumer-packaged goods, primarily through the Global Coffee Alliance established with Nestlé and other partnerships and joint ventures.

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We believe our financial results and long-term growth model will continue to be driven by new store openings, comparable store sales, and operating margin management, underpinned by disciplined capital allocation.

We believe these key operating metrics are useful to investors because management uses these metrics to assess the growth of our business and the effectiveness of our marketing and operational strategies.

Throughout this MD&A, we commonly discuss the following key operating metrics:

Comparable store sales includes company-operated stores open 13 months or longer, and exclude the effects of foreign currency exchange rates.

Stores that are temporarily closed for fewer than three weeks or operating at reduced hours remain in comparable store sales while permanent store closures are removed in the month following closure.

We analyze comparable store sales on a constant currency basis as this helps identify underlying business trends, without distortion from the effects of currency movements.

Throughout this MD&A, we commonly discuss the following key operating metrics, which we believe are useful to investors because management uses these metrics to assess the growth of our business and the effectiveness of our marketing and operational strategies:

• New store openings and store count

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• Operating margin

Comparable store sales represents the percentage change in sales in one period from the same prior year period for company-operated stores open for 13 months or longer and excludes the impact of foreign currency translation.

We analyze comparable store sales on a constant currency basis as this helps identify underlying business trends, without distortion from the effects of currency movements.

Stores that are temporarily closed or operating at reduced hours remain in comparable store sales while stores identified for permanent closure have been removed.

Our fiscal year ends on the Sunday closest to September 30.

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All references to store counts, including data for new store openings, are reported net of store closures, unless otherwise noted.

Starbucks results for the third quarter of fiscal 2025 showed continued progress on key “Back to Starbucks” initiatives, specifically investments in coffeehouse partners, including the Leadership Experience 2025, a conference designed to empower and motivate our retail leaders to accelerate our “Back to Starbucks” strategy, as we work to rebuild a stronger Starbucks.

During the third quarter of fiscal 2025, consolidated net revenues increased 4% to $9.5 billion compared to $9.1 billion in the third quarter of fiscal 2024, primarily driven by incremental revenues from net new company-operated store openings over the past 12 months, partially offset by a decrease in global comparable store sales.

During the quarter ended June 29, 2025, our global comparable store sales declined 2%, primarily driven by a 2% decline in the U.S.

Starbucks results for the first quarter of fiscal 2026 showed continued progress and momentum on key “Back to Starbucks” initiatives, as demonstrated through meaningful revenue growth.

These investments included implementing the Green Apron Service standard to improve the coffeehouse experience, engaging consumer marketing, and on-trend menu innovation, all of which deliver greater connection and value for customers.

During the first quarter of fiscal 2026, consolidated net revenues increased 6% to $9.9 billion compared to $9.4 billion in the first quarter of fiscal 2025, primarily due to a 4% increase in global comparable store sales, driven by a 4% increase in the U.S.

market and a 5% increase internationally.

Also contributing to the increase were incremental revenues from net new company-operated store openings over the past 12 months, and an increase in revenue from the Global Coffee Alliance.

Specific to the U.S.

market, the decrease in comparable store sales was driven by a 4% decrease in comparable transactions, partially offset by a 2% increase in average ticket, primarily due to fewer discounts in the current year.

Consolidated operating margin contracted 680 basis points from the prior year to 9.9%, primarily driven by deleverage, investments in support of “Back to Starbucks,” including additional labor and the Leadership Experience 2025, and inflation, primarily driven by elevated coffee pricing.

For the balance of this fiscal year, we expect that the macroeconomic challenges we have been experiencing, including impacts from new tariffs and volatile coffee prices, will continue;

however we are encouraged by the results we have seen from our “Back to Starbucks” initiatives and early results from our pilots.

For example, as a result of compelling early insights, we have decided to accelerate the rollout of the Green Apron Service model, a new foundational operating model that establishes repeatable, consistent, and scalable standards, across U.S.

company-operated stores in the next few months.

We will continue to prioritize disciplined capital investments in our stores, and we are conducting a comprehensive evaluation of our store portfolio, which we expect will be complete by the end of the fiscal year and result in additional material restructuring charges.

Additionally, we will continue our efforts to identify a strategic partner with a similar vision and values to help us capture future growth opportunities in China.

Our focus will continue to be on the long-term, sustainable growth of the company.

We believe the actions we are taking now and in the future, specifically through our investments in store partners, uplifting the coffeehouse experience, introducing new food and beverage platforms, and reimagining the Starbucks rewards program, paired with disciplined prioritization, while driving more efficiency, accountability, and agility as a company, will lay the foundation for the future of Starbucks.

market, the increase in comparable store sales was driven by a 3% increase in comparable transactions and a 1% increase in average ticket, primarily driven by an increase in customer beverage modifications in the current year.

Consolidated operating margin contracted 290 basis points from the prior year to 9.0%, primarily driven by labor investments in support of “Back to Starbucks,” and inflationary pressures, largely driven by elevated coffee pricing and tariffs.

In support of our “Back to Starbucks” strategy, we continued to close stores that did not demonstrate a viable path to profitability, or meet our standards of delivering a warm, welcoming space for our customers and partners.

Our store closures in North America were substantially completed in fiscal 2025, and the majority of International store closures were completed in the first quarter of fiscal 2026.

With a healthier base of coffeehouses, we expect meaningful opportunity for disciplined growth.

We anticipate that these actions, along with our simplified broader support organization, will allow us to restructure, redeploy, and refocus our resources on priorities that we believe will deliver long-term sustainable business growth.

In November, we announced that the Company entered into an agreement to form a joint venture with Boyu Capital to operate Starbucks retail in China (the “disposal group”), marking a significant milestone in the Company’s ongoing transformation and underscoring its commitment to accelerating long-term growth in one of the Company’s most important and fastest-growing global markets.

During the first quarter of fiscal 2026, 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 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.

As the fiscal year progresses, we will continue to refine and execute our “Back to Starbucks” initiatives to continue topline momentum and build sales leverage while investing in our cafes and customer experience, delivering seamless digital experiences, improving our supply chain, and enabling technological efficiencies.

We expect certain macroeconomic pressures to alleviate in the second half of the fiscal year, including impacts on product and distribution costs from tariffs and elevated coffee pricing.

Further, we look forward to working with our new strategic joint venture partner, Boyu Capital, to expand into more cities across China, deliver exceptional coffee experiences, create new career opportunities for partners, and strengthen Starbucks position as a global brand for long-term growth.

Given the held-for-sale classification of the retail operations assets

in China, we expect reduced depreciation and amortization, and store operating expenses, through the close of the transaction with Boyu Capital, which is expected in early calendar year 2026.

Upon closing, under the equity method of accounting, we will transition from recording revenues and expenses of the disposal group to recording our share of income from the joint venture, recognized as income from equity investees.

We currently plan to use our transaction proceeds for debt reduction, strengthening our balance sheet and allowing us to execute our long-term growth strategy with greater financial flexibility.

While we believe we are making the right strategic investments to improve our operating foundations, these investments will take time to flow through to sustainable earnings growth, and we will continue to test, learn, and refine our approach to deliver the best of Starbucks to drive durable, profitable, long-term growth.

Results of Operations (in millions)

Quarter Ended Three Quarters Ended

Quarter Ended

Company-operated stores $ 8,188.0 $ 7,785.3 $ 402.7 5.2 %

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Total net revenues $ 9,915.1 $ 9,397.8 $ 517.3 5.5 %

For the quarter ended June 29, 2025 compared with the quarter ended June 30, 2024

Total net revenues for the third quarter of fiscal 2025 increased $342 million, primarily due to higher revenues from company-operated stores ($297 million) and other revenues ($69 million), partially offset by a decrease in revenues from licensed stores ($23 million).

Company-operated store revenue increased $297 million, primarily driven by incremental revenues from 1,151 net new company-operated stores, or a 6% increase, over the past 12 months ($330 million).

Also contributing to the overall increase in company-operated store revenue were favorable foreign currency translation impacts ($45 million) and incremental revenue from the conversion of 113 licensed stores to company-operated stores ($36 million) following the acquisition of 23.5 Degrees Topco Limited, a U.K.

licensed business partner, during the first quarter of fiscal 2025.

These increases in net revenue were partially offset by a 2% decrease in comparable store sales ($122 million), attributable to a 2% decrease in comparable transactions, partially offset by a 1% increase in average ticket.

Licensed stores revenue decreased $23 million, primarily driven by lower product and equipment sales to, and royalty revenues from, our licensees in our North America segment ($37 million) and the impact of the acquisition of 23.5 Degrees Topco Limited ($9 million).

These decreases in licensed stores revenue were partially offset by an increase in product and equipment sales to, and royalty revenues from, our licensees in our International segment ($28 million).

For the quarter ended December 28, 2025 compared with the quarter ended December 29, 2024

Total net revenues for the first quarter of fiscal 2026 increased $517 million, primarily due to higher revenues from company-operated stores ($403 million) and other revenues ($120 million).

Company-operated store revenue increased $403 million, primarily driven by a 4% increase in comparable store sales ($293 million), attributable to a 3% increase in comparable transactions and a 1% increase in average ticket.

Also contributing to the overall increase in company-operated store revenue were incremental revenues from 198 net new company-operated stores, representing a 1% increase, over the past 12 months ($103 million).

Licensed stores revenue decreased $5 million, primarily driven by lower product sales to, and royalty revenues from, our licensees in our North America segment ($41 million), and lower equipment sales to our licensees globally ($21 million).

These decreases in licensed stores revenue were partially offset by an increase in product sales to, and royalty revenues from, our licensees in our International segment ($58 million).

Other revenues increased $120 million, primarily due to an increase in revenue in the Global Coffee Alliance ($73 million) and increased sales of cocoa butter to third parties ($29 million).

For the three quarters ended June 29, 2025 compared with the three quarters ended June 30, 2024

Total net revenues for the first three quarters of fiscal 2025 increased $513 million, primarily due to higher revenues from company-operated stores ($559 million) and other revenues ($72 million), partially offset by a decrease in revenues from licensed stores ($118 million).

Company-operated store revenue increased $559 million, primarily driven by incremental revenues from 1,151 net new company-operated stores, or a 6% increase, over the past 12 months ($927 million) and incremental revenue from the conversion of 113 licensed stores to company-operated stores ($93 million) following the acquisition of 23.5 Degrees Topco Limited.

These increases in net revenue were partially offset by a 2% decrease in comparable store sales ($453 million), attributable to a 4% decrease in comparable transactions, partially offset by a 2% increase in average ticket.

Licensed stores revenue decreased $118 million, primarily driven by lower product and equipment sales to, and royalty revenues from, our licensees in our North America segment ($112 million), the impact of the acquisition of 23.5 Degrees Topco Limited ($26 million), and by unfavorable foreign currency translation impacts ($22 million).

These decreases were partially offset by an increase in product and equipment sales to, and royalty revenues from, our licensees in our International segment ($49 million).

Other revenues increased $72 million, primarily due to increased sales of cocoa butter to third parties ($34 million) and an increase in revenue in the Global Coffee Alliance ($27 million).

Operating Expenses

Quarter Ended Three Quarters Ended

Change Jun 29,

Total Net Revenues As a % of

Quarter Ended

Total Net Revenues

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General and administrative expenses 638.8 665.8 (27.0) 6.4 7.1

Restructuring 20.8 — 20.8 0.2 — 137.0 — 137.0 0.5 —

Restructuring and impairments 88.1 — 88.1 0.9 —

Total operating expenses 9,084.9 8,322.6 762.3 91.6 88.6

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Store operating expenses as a % of company-operated stores revenue 55.6 % 54.0 %

For the quarter ended June 29, 2025 compared with the quarter ended June 30, 2024

Product and distribution costs as a percentage of total net revenues increased 120 basis points for the third quarter of fiscal 2025, largely due to inflation (approximately 100 basis points), primarily driven by elevated coffee pricing.

Store operating expenses as a percentage of total net revenues increased 390 basis points for the third quarter of fiscal 2025.

Store operating expenses as a percentage of company-operated stores revenue increased 470 basis points, primarily due to additional labor (approximately 160 basis points), deleverage (approximately 150 basis points), and increased marketing (approximately 90 basis points).

Other operating expenses increased $8 million, primarily due to support costs for our licensed markets.

Depreciation and amortization expenses as a percentage of total net revenues increased 30 basis points, primarily due to deleverage.

General and administrative expenses increased $101 million, primarily due to the Leadership Experience 2025 ($81 million).

Restructuring was $21 million, largely due to costs associated with simplifying our support organization, primarily severance costs, in support of our “Back to Starbucks” strategy.

Income from equity investees decreased $17 million, primarily due to lower income from our North American Coffee Partnership joint venture.

The combination of these changes resulted in an overall decrease in operating margin of 680 basis points for the third quarter of fiscal 2025.

For the three quarters ended June 29, 2025 compared with the three quarters ended June 30, 2024

Product and distribution costs as a percentage of total net revenues increased 20 basis points for the first three quarters of fiscal 2025, primarily due to inflation (approximately 70 basis points), partially offset by supply chain efficiencies (approximately 50 basis points).

Store operating expenses as a percentage of total net revenues increased 400 basis points for the first three quarters of fiscal 2025.

Store operating expenses as a percentage of company-operated stores revenue increased 450 basis points, primarily due to deleverage (approximately 200 basis points), additional labor (approximately 160 basis points), and increased marketing (approximately 90 basis points).

Other operating expenses increased $16 million, primarily due to support costs for our licensed markets.

Depreciation and amortization expenses as a percentage of total net revenues increased 40 basis points, primarily due to deleverage.

General and administrative expenses increased $97 million, primarily due to the Leadership Experience 2025 ($81 million).

Restructuring was $137 million, largely due to costs associated with simplifying our support organization, primarily severance costs, in support of our “Back to Starbucks” strategy.

Income from equity investees decreased $35 million, primarily due to lower income from our North American Coffee Partnership joint venture.

The combination of these changes resulted in an overall decrease in operating margin of 550 basis points for the first three quarters of fiscal 2025.

For the quarter ended December 28, 2025 compared with the quarter ended December 29, 2024

Product and distribution costs as a percentage of total net revenues increased 220 basis points for the first quarter of fiscal 2026, largely due to inflationary pressures (approximately 140 basis points), primarily driven by elevated coffee pricing and tariffs.

Store operating expenses as a percentage of total net revenues increased 120 basis points for the first quarter of fiscal 2026.

Store operating expenses as a percentage of company-operated stores revenue increased 160 basis points, primarily due to labor investments in support of “Back to Starbucks” (approximately 230 basis points).

Other operating expenses decreased $21 million, primarily due to savings from simplifying our licensed business support organization ($15 million).

Depreciation and amortization expenses as a percentage of total net revenues decreased 30 basis points, primarily as a result of ceasing depreciation upon classifying our Starbucks retail operations in China as held for sale.

General and administrative expenses decreased $27 million, largely due to restructuring related savings ($66 million), partially offset by transaction-related expenses related to the strategic partnership with Boyu Capital to operate Starbucks retail in China ($20 million).

Restructuring and impairments was $88 million, largely due to costs associated with the closure of coffeehouses and simplification of our support organization.

See Note 17 , Restructuring, to the consolidated financial statements included in Item 1 of Part I of this 10-Q, for further discussion.

Income from equity investees increased $14 million, primarily due to higher income from our North American Coffee Partnership joint venture.

The combination of these changes resulted in an overall decrease in operating margin of 290 basis points for the first quarter of fiscal 2026.

Other Income and Expenses

Quarter Ended Three Quarters Ended

Change Jun 29,

Quarter Ended

Change Dec 28,

As a % of Total

Net Revenues As a % of Total

Operating income $ 890.8 $ 1,121.7 $ (230.9) 9.0 % 11.9 %

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Net earnings/(loss) attributable to noncontrolling interests (0.1) 0.1 (0.2) — —

0.2 0.9 (0.7) 0.0 0.0 0.3 1.0 (0.7) 0.0 0.0

Net earnings attributable to Starbucks $ 293.3 $ 780.8 $ (487.5) 3.0 % 8.3 %

Effective tax rate including noncontrolling interests 61.7 % 23.6 %

For the quarter ended June 29, 2025 compared with the quarter ended June 30, 2024

The effective tax rate for the quarter ended June 29, 2025 was 31.8% compared to 24.8% for the same period in fiscal 2024.

For the three quarters ended June 29, 2025 compared with the three quarters ended June 30, 2024

Interest income and other, net, decreased $14 million, primarily due to lower cash balances and lower interest rates in the current year.

Interest expense decreased $25 million, primarily due to savings from cross-currency interest rate hedging, partially offset by higher interest rates on refinanced long-term debt.

The effective tax rate for the first three quarters ended June 29, 2025 was 26.5% compared to 24.4% for the same period in fiscal 2024.

The increase was primarily due to the discrete impact of changes in indefinite reinvestment assertions for certain foreign entities in the third quarter of fiscal 2025 (approximately 300 basis points), partially offset by the discrete impact of a tax status change for a certain foreign entity (approximately 130 basis points).

For the quarter ended December 28, 2025 compared with the quarter ended December 29, 2024

Interest income and other, n et decreased $14.8 million, primarily due to unfavorable investment performance and non-core investment impairments.

Interest expen se increased $11.8 million, primarily due to a higher debt balance and higher interest rates on refinanced long-term debt in the current year.

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 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).

Segment Information

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North America

Quarter Ended Three Quarters Ended

Change Jun 29,

Quarter Ended

As a % of North America

Total Net Revenues As a % of North America

Total Net Revenues

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General and administrative expenses 94.3 97.3 (3.0) 1.3 1.4

Restructuring 3.1 — 3.1 — — 24.5 — 24.5 0.1 0.0

Restructuring and impairments 40.0 — 40.0 0.5 —

Total operating expenses 6,413.5 5,890.6 522.9 88.1 83.3

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Store operating expenses as a % of company-operated stores revenue 57.0 % 54.3 %

For the quarter ended June 29, 2025 compared with the quarter ended June 30, 2024

North America total net revenues for the third quarter of fiscal 2025 increased $110 million, or 2%, primarily driven by net new company-operated store growth of 5%, or 513 stores, over the past 12 months ($266 million).

This growth was partially offset by a net 2% decrease in comparable store sales ($116 million), driven by a 3% decrease in comparable transactions, partially offset by a 1% increase in average ticket, primarily due to fewer discounts in the current year.

Also contributing were lower product and equipment sales to, and royalty revenues from, our licensees ($37 million).

Operating Margin

North America operating income for the third quarter of fiscal 2025 decreased 36% to $919 million, compared to $1.4 billion in the third quarter of fiscal 2024.

Operating margin contracted 770 basis points to 13.3%, primarily driven by deleverage (approximately 250 basis points), investments in support of “Back to Starbucks,” including additional labor (approximately 170 basis points) and the Leadership Experience 2025 (approximately 120 basis points), and inflation (approximately 110 basis points), primarily driven by elevated coffee pricing.

For the three quarters ended June 29, 2025 compared with the three quarters ended June 30, 2024

North America total net revenues for the first three quarters of fiscal 2025 increased $154 million, or 1%, primarily driven by net new company-operated store growth 5%, or 513 stores, over the past 12 months ($722 million).

This growth was partially offset by a net 2% decrease in comparable store sales ($420 million) driven by a 5% decrease in comparable transactions, partially offset by a 3% increase in average ticket, primarily due to annualization of prior year pricing and fewer discounts in the current year.

Also contributing were lower product and equipment sales to, and royalty revenues from, our licensees ($112 million).

For the quarter ended December 28, 2025 compared with the quarter ended December 29, 2024

North America total net revenues for the first quarter of fiscal 2026 increased $209 million, or 3%, primarily driven by an increase in company-operated store revenue due to a 4% increase in comparable store sales ($222 million), driven by a 3% increase in comparable transactions and a 1% increase in average ticket.

Operating Margin

North America operating income for the first three quarters of fiscal 2025 decreased 31% to $2.8 billion, compared to $4.1 billion in the first three quarters of fiscal 2024.

Operating margin contracted 630 basis points to 13.9%, primarily driven by deleverage (approximately 320 basis points), additional labor (approximately 180 basis points), and inflation (approximately 70 basis points).

North America operating income for the first quarter of fiscal 2026 decreased 27% to $867 million, compared to $1.2 billion in the first quarter of fiscal 2025.

Operating margin contracted 480 basis points to 11.9%, primarily driven by labor investments in support of “Back to Starbucks,” (approximately 260 basis points) and inflationary pressures (approximately 150 basis points), primarily driven by tariffs and elevated coffee pricing.

International

Quarter Ended Three Quarters Ended

Quarter Ended

As a % of International

Total Net Revenues As a % of International

Total Net Revenues

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General and administrative expenses 96.0 92.4 3.6 4.6 4.9

Restructuring 3.1 — 3.1 0.2 — 19.9 — 19.9 0.3 —

Restructuring and impairments 43.6 — 43.6 2.1 —

Total operating expenses 1,781.8 1,633.8 148.0 86.3 87.3

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Store operating expenses as a % of company-operated stores revenue 49.4 % 52.5 %

For the quarter ended June 29, 2025 compared with the quarter ended June 30, 2024

International total net revenues for the third quarter of fiscal 2025 increased $169 million, or 9%, primarily due to net new company-operated store growth of 7%, or 638 stores, over the past 12 months ($63 million), favorable foreign currency translation impacts ($48 million), and higher product and equipment sales to, and royalty revenues from, our licensees ($28 million), primarily due to the opening of 446 net new licensed stores over the past 12 months.

Also contributing to the increase

in revenues was the incremental net revenue from the conversion of 113 licensed stores to company-operated stores ($27 million) following the acquisition of 23.5 Degrees Topco Limited, a U.K.

licensed business partner, during the first quarter of fiscal 2025.

International comparable store sales were flat, driven by a 1% increase in comparable transactions, offset by a 1% decrease in average ticket.

Operating Margin

International operating income for the third quarter of fiscal 2025 decreased 5% to $273 million, compared to $288 million in the third quarter of fiscal 2024.

Operating margin contracted 200 basis points to 13.6%, primarily due to increased promotional activity (approximately 160 basis points).

For the three quarters ended June 29, 2025 compared with the three quarters ended June 30, 2024

International total net revenues for the first three quarters of fiscal 2025 increased $304 million, or 6%, primarily due to net new company-operated store growth of 7%, or 638 stores, over the past 12 months ($205 million), and the incremental net revenue from the conversion of 113 licensed stores to company-operated stores ($67 million) following the acquisition of 23.5 Degrees Topco Limited during the first quarter of fiscal 2025.

Also contributing to the increase in revenues were higher product and equipment sales to, and royalty revenues from, our licensees ($49 million), primarily due to the opening of 446 net new licensed stores over the past 12 months.

These increases were partially offset by a 1% decrease in comparable store sales ($33 million), driven by a 2% decrease in average ticket, partially offset by a 1% increase in comparable transactions.

For the quarter ended December 28, 2025 compared with the quarter ended December 29, 2024

International total net revenues for the first quarter of fiscal 2026 increased $194 million, or 10%, primarily driven by an increase in company-operated store revenue due to a 5% increase in comparable store sales ($72 million), driven by a 3% increase in comparable transactions and a 2% increase in average ticket, and higher product sales to, and royalty revenues from, our licensees ($58 million), primarily due to the opening of 357 net new licensed stores over the past 12 months.

Also contributing to the increase in revenue was net new company-operated store growth of 4%, or 362 stores, over the past 12 months ($51 million).

Operating Margin

International operating income for the first three quarters of fiscal 2025 decreased 5% to $727 million, compared to $763 million in the first three quarters of fiscal 2024.

Operating margin contracted 140 basis points to 12.6%, primarily due to increased promotional activity (approximately 180 basis points).

International operating income for the first quarter of fiscal 2026 increased 19% to $283 million, compared to $237 million in the first quarter of fiscal 2025.

Operating margin expanded 100 basis points to 13.7%, primarily due to sales leverage (approximately 360 basis points), and lower store operating and depreciation and amortization costs after classifying assets for Starbucks retail operations in China as held for sale (approximately 200 basis points), partially offset by restructuring costs associated with the closure of coffeehouses (approximately 210 basis points) and inflationary pressures (approximately 190 basis points), primarily driven by elevated coffee pricing.

Channel Development

Quarter Ended Three Quarters Ended

Change Jun 29,

Quarter Ended

As a % of Channel Development

Total Net Revenues As a % of Channel Development

Total Net Revenues

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General and administrative expenses 1.2 2.0 (0.8) 0.2 0.5

Restructuring

0.2 — 0.2 — — 1.1 — 1.1 0.1 —

Restructuring and impairments 0.3 — 0.3 0.1 —

Total operating expenses 367.9 275.2 92.7 70.4 63.1

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Operating income $ 215.8 $ 208.0 $ 7.8 41.3 % 47.7 %

For the quarter ended June 29, 2025 compared with the quarter ended June 30, 2024

Channel Development total net revenues for the third quarter of fiscal 2025 increased $46 million, or 10%, primarily due to an increase in revenue in the Global Coffee Alliance ($45 million).

Operating Margin

Channel Development operating income for the third quarter of fiscal 2025 decreased 7% to $218 million, compared to $235 million in the third quarter of fiscal 2024.

Operating margin contracted 860 basis points to 45.1%, primarily driven by a decline

in our North American Coffee Partnership joint venture income (approximately 420 basis points), mix shift (approximately 270 basis points), and higher global product costs (approximately 250 basis points).

For the three quarters ended June 29, 2025 compared with the three quarters ended June 30, 2024

Channel Development total net revenues for the first three quarters of fiscal 2025 increased $25 million, or 2%, primarily due to an increase in revenue in the Global Coffee Alliance ($27 million).

For the quarter ended December 28, 2025 compared with the quarter ended December 29, 2024

Channel Development total net revenues for the first quarter of fiscal 2026 increased $86 million, or 20%, primarily due to an increase in revenue in the Global Coffee Alliance ($73 million) and higher revenue in our global ready-to-drink business ($11 million).

Operating Margin

Channel Development operating income for the first three quarters of fiscal 2025 decreased 6% to $620 million, compared to $661 million in the first three quarters of fiscal 2024.

Operating margin contracted 410 basis points to 46.6%, primarily driven by a decline in our North American Coffee Partnership joint venture income (approximately 250 basis points) and higher global product costs (approximately 180 basis points).

Channel Development operating income for the first quarter of fiscal 2026 increased 4% to $216 million, compared to $208 million in the first quarter of fiscal 2025.

Operating margin contracted 640 basis points to 41.3%, primarily driven by mix shift (approximately 440 basis points), and higher global product costs (approximately 370 basis points), partially offset by an increase in our North American Coffee Partnership joint venture income (approximately 100 basis points).

Corporate and Other

Quarter Ended Three Quarters Ended

Quarter Ended

Net revenues:

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Product and distribution costs 37.4 19.4 18.0 92.8

Other operating expenses 0.6 0.4 0.2 50.0 0.7 1.1 (0.4) (36.4)

Other operating expenses 0.8 — 0.8 nm

Depreciation and amortization expenses 32.0 29.5 2.5 8.5

General and administrative expenses 447.3 474.1 (26.8) (5.7)

Restructuring 14.4 — 14.4 nm 91.5 — 91.5 nm

Restructuring and impairments 4.2 — 4.2 nm

Total operating expenses 521.7 523.0 (1.3) (0.2)

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Unallocated corporate expenses include corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment and are not included in the reported financial results of the operating segments.

For the quarter ended June 29, 2025 compared with the quarter ended June 30, 2024

Corporate and Other operating loss increased 8% to $474 million for the third quarter of fiscal 2025 compared to $438 million for the third quarter of fiscal 2024, largely due to costs associated with restructuring our support organization, primarily severance costs, in support of our “Back to Starbucks” strategy.

For the three quarters ended June 29, 2025 compared with the three quarters ended June 30, 2024

Corporate and Other operating loss increased 8% to $1.5 billion for the first three quarters of fiscal 2025 compared to $1.4 billion for the first three quarters of fiscal 2024, largely due to costs associated with restructuring our support organization, primarily severance costs, in support of our “Back to Starbucks” strategy.

For the quarter ended December 28, 2025 compared with the quarter ended December 29, 2024

Corporate and Other operating loss decreased 6% to $475 million for the first quarter of fiscal 2026 compared to $505 million for the first quarter of fiscal 2025, largely due to restructuring related savings ($62 million), partially offset by transaction-related expenses related to the strategic partnership with Boyu Capital to operate Starbucks retail in China ($20 million).

Quarterly Store Data

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Net stores opened/(closed) and transferred during the period (1)

Quarter Ended Three Quarters Ended Stores open as of

Quarter Ended Stores open as of

North America

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Total Company 128 377 41,118 40,576

(1) Net stores opened/(closed) and transferred during the period, for the three quarters ended June 29, 2025, includes the conversion of 113 licensed stores to company-operated stores following the acquisition of 23.5 Degrees Topco Limited during the first quarter of fiscal 2025.

(1) Includes 165 stores closed in the first quarter of fiscal 2026 as part of our “Back to Starbucks” restructuring plan.

(2) Includes the conversion of 113 licensed stores to company-operated stores following the acquisition of 23.5 Degrees Topco Limited during the first quarter of fiscal 2025.

Financial Condition, Liquidity, and Capital Resources

Cash and Investment Overview

Our cash and investments were $4.7 billion as of June 29, 2025 and $3.8 billion as of September 29, 2024.

Our cash and investments were $3.9 billion as of December 28, 2025 and $3.7 billion as of September 28, 2025.

We actively manage our cash and investments in order to internally fund operating needs, make scheduled interest and principal payments on our borrowings, fund acquisitions, and return cash to shareholders through common stock cash dividend payments and share repurchases.

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government treasury securities, as well as principal-protected structured deposits.

As of June 29, 2025, approximately $2.1 billion of cash and short-term investments were held in foreign subsidiaries.

As of December 28, 2025, approximately $1.3 billion of cash and short-term investments were held in foreign subsidiaries, excluding cash balances for Starbucks retail operations in China that were classified as held for sale.

Borrowing Capacity

Credit Facilities and Commercial Paper

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.

Commercial Paper

Under our commercial paper program, we may issue unsecured commercial paper notes up to a maximum aggregate amount

outstanding at any time of $3.0 billion, with individual maturities that may vary but not exceed 397 days from the date of issue.

Under our commercial paper program, we may issue unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time of $3.0 billion, with individual maturities that may vary but not exceed 397 days from the date of issue.

Amounts outstanding under the commercial paper program are required to be backstopped by available commitments under our 2025 credit facility.

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.

Credit Facilities in Japan

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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.

See Note 8, Debt, to the consolidated financial statements included in Item 1 of Part I of this 10-Q for details of the components of our long-term debt.

Our ability to incur new liens and conduct sale and leaseback transactions on certain material properties is subject to compliance with terms of the indentures under which the long-term notes were issued.

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

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

We expect to use our available cash and investments, including, but not limited to, additional potential future borrowings under the credit facilities, commercial paper program, and the issuance of debt to support and invest in our core businesses, including investing in new ways to serve our customers and supporting our store partners, repaying maturing debts, returning cash to shareholders through common stock cash dividend payments and discretionary share repurchases, and investing in new business opportunities related to our core and developing businesses.

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We believe that net future cash flows generated from operations and existing cash and investments both domestically and internationally, combined with our ability to leverage our balance sheet through the issuance of debt, will be sufficient to finance capital requirements for our core businesses as well as shareholder distributions for at least the next 12 months.

We are currently not aware of any trends or demands, commitments, events, or uncertainties that will result in, or that are reasonably likely to result in, our liquidity increasing or decreasing in any material way that will impact our capital needs during or beyond the next 12 months.

Aside from the expected proceeds from our planned divestiture of Starbucks retail operations in China, we are currently not aware of any trends or demands, commitments, events, or uncertainties that will result in, or that are reasonably likely to result in, our liquidity increasing or decreasing in any material way that will impact our capital needs during or beyond the next 12 months.

We have borrowed funds and continue to believe we have the ability to do so at reasonable interest rates;

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Any foreign earnings that are not indefinitely reinvested may be repatriated at management’s discretion.

During the third quarter of fiscal 2025, we revised our indefinite reinvestment assertions from prior years' cumulative earnings from certain foreign subsidiaries;

as a result, and in anticipation of repatriating earnings from those subsidiaries, we accrued approximately $70 million of discrete tax expense related to foreign withholding taxes during the third quarter of fiscal year 2025.

We continue to be indefinitely reinvested in the remainder of our foreign earnings, for which no tax accrual has been recorded.

On July 4, 2025, the President of the United States signed and enacted tax legislation into law through a reconciliation bill titled “An Act to provide for reconciliation pursuant to title II of H.

14,” commonly referred to as the “One Big Beautiful Bill Act.” This legislation was enacted during the fourth quarter of fiscal 2025;

therefore, the fiscal 2025 accounting impacts

from this tax law change will be included in our fourth quarter of fiscal 2025 results.

We are evaluating the impacts of this tax law change;

however, it is not expected to result in a material impact to our consolidated financial statements.

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 three quarters ended June 29, 2025, we made no common stock share repurchases.

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

In the first quarter of fiscal 2026, we released all of our remaining indefinite reinvestment assertions and recorded a one-time discrete tax expense of $266 million.

In future periods, any foreign earnings may be repatriated at management’s discretion without any material, incremental tax consequences.

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.

During the first quarter of fiscal 2025, we made no common stock share repurchases.

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

Other than normal operating expenses, cash requirements for the remainder of fiscal 2026 are expected to consist primarily of capital expenditures for investments in our new and existing stores, our supply chain, and corporate facilities.

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There have been no material changes to our material cash requirements during the period covered by this 10-Q outside of the normal course of our business.

Net cash provided by operating activities was $3.4 billion for the first three quarters of fiscal 2025, compared to $4.6 billion for the same period in fiscal 2024.

The change was primarily due to a decrease in net earnings of $1.1 billion and a net increase of $424 million in inventories, which was primarily driven by green and roasted coffee, largely due to elevated coffee prices, partially offset by a net increase of $229 million in accounts payable, primarily due to payment timing.

Net cash used in investing activities totaled $2.1 billion for the first three quarters of fiscal 2025, compared to $1.8 billion for the same period in fiscal 2024.

The change was primarily due to a net decrease of $207 million in cash provided by investment activity, primarily structured deposit investments, and the acquisition of 23.5 Degrees Topco Limited.

Net cash used in financing activities for the first three quarters of fiscal 2025 totaled $365 million, compared to $3.1 billion for the same period in fiscal 2024.

The change was primarily due to no current year repayments of long-term debt and no current year share repurchases of our common stock compared to the prior year.

Cash provided by operating activities was $1.6 billion for the first quarter of fiscal 2026, compared to $2.1 billion for the same period in fiscal 2025.

The change was primarily due to a decrease in net earnings of $487.7 million and a net decrease in cash flow of $269.2 million in Accounts Payable, which was primarily driven by payment timing.

These impacts were partially offset by a net increase in cash flow of $317.5 million in Deferred income taxes primarily related to the change in indefinite reinvestment assertion as a result of classifying our Starbucks retail operations in China as held for sale.

Cash used in investing activities totaled $0.3 billion for the first quarter of fiscal 2026, compared to $0.9 billion for the same period in fiscal 2025.

The change was primarily due to a net decrease in capital expenditures of $369.2 million driven by a reduction in retail renovations and new store investments in North America, and lapping the acquisition of 23.5 Degrees Topco Limited in the first quarter of fiscal 2025.

Cash used in financing activities for the first quarter of fiscal 2026 totaled $0.7 billion, compared to $0.8 billion for the same period in fiscal 2025, and primarily consisted of cash dividend payments in both periods.

Commodity Prices, Availability and General Risk Conditions

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In addition to coffee, we also purchase significant amounts of dairy products to support the needs of our company-operated stores.

The price and availability of these commodities, including recent volatility in green coffee prices, directly impact our results of operations, and we expect commodity prices, particularly coffee, to continue to impact future results of operations.

The price and availability of these commodities, including impacts from volatility in green coffee prices and new tariffs, directly impact our results of operations, and we expect commodity prices, particularly coffee, to continue to impact future results of operations.

For additional details, see Product Supply in Part 1, Item 1 of the 10-K, as well as Risk Factors in Part I, Item 1A of the 10-K.

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generally accepted accounting principles and the Company’s discussion and analysis of its financial condition and operating results require the Company’s management to make judgments, assumptions, and estimates that affect the amounts reported.

Note 1 , Summary of Significant Accounting Policies and Estimates, to the consolidated financial statements included in Item 1 of Part I of this 10-Q and in the Notes to Consolidated Financial Statements in Part II, Item 8 of the 10-K describe the significant accounting policies and methods used in the preparation of the Company’s consolidated financial statements.

Note 1 , Summary of Significant Accounting Policies, to the consolidated financial statements included in Item 1 of Part I of this 10-Q and in the Notes to Consolidated Financial Statements in Part II, Item 8 of the 10-K describe the significant accounting policies and methods used in the preparation of the Company’s consolidated financial statements.

There have been no material changes to the Company’s critical accounting estimates since the 10-K.

RECENT ACCOUNTING PRONOUNCEMENTS

See Note 1 , Summary of Significant Accounting Policies and Estimates, to the consolidated financial statements included in Item 1 of Part I of this 10-Q, for a detailed description of recent accounting pronouncements.

See Note 1 , Summary of Significant Accounting Policies, to the consolidated financial statements included in Item 1 of Part I of this 10-Q, for a detailed description of recent accounting pronouncements.

Quantitative and Qualitative Disclosures About Market Risk

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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-Q

Item 2. Management’s Discussion and Analysis