What changed in this filing

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Item 1. Financial Statements

2026-04-28 compared with 2026-01-28 · 281 added, 110 removed, 752 unchanged (34% of the section changed)

3 unchanged sentences

(in millions, except per share data, unaudited)

Quarter Ended

Quarter Ended Two Quarters Ended

Net revenues:

9 unchanged sentences

Restructuring and impairments

25.1 116.2 113.2 116.2

Total operating expenses 8,754.2 8,219.7 17,839.1 16,542.1

7 unchanged sentences

Net earnings/(loss) attributable to noncontrolling interests

( 0.1 ) ( 0.1 ) ( 0.2 ) 0.1

Net earnings attributable to Starbucks $ 510.9 $ 384.2 $ 804.2 $ 1,165.0

8 unchanged sentences

(in millions, unaudited)

Quarter Ended

Quarter Ended Two Quarters Ended

Net earnings including noncontrolling interests $ 510.8 $ 384.1 $ 804.0 $ 1,165.1

13 unchanged sentences

Comprehensive income/(loss) attributable to noncontrolling interests

— ( 0.1 ) — ( 0.2 )

Comprehensive income attributable to Starbucks $ 519.4 $ 438.8 $ 846.0 $ 1,065.1

50 unchanged sentences

(in millions, unaudited)

Quarter Ended

Two Quarters Ended

OPERATING ACTIVITIES:

29 unchanged sentences

Repayments of short-term debt — ( 5.4 )

Repayments of long-term debt ( 1,000.0 ) —

Proceeds from issuance of common stock 36.5 44.4

15 unchanged sentences

CONSOLIDATED STATEMENTS OF EQUITY

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

For the Quarter Ended March 29, 2026 and March 30, 2025

(in millions, except per share data, unaudited)

6 unchanged sentences

Shares Amount

Balance, September 28, 2025

Balance, December 28, 2025

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

7 unchanged sentences

— — — 0.1 0.1 — 0.1

Balance, March 29, 2026

1,139.5 $ 1.1 $ 832.1 $ ( 8,881.0 ) $ ( 417.3 ) $ ( 8,465.1 ) $ 7.4 $ ( 8,457.7 )

Balance, December 29, 2024

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

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

Other comprehensive income/(loss) — — — — 54.6 54.6 — 54.6

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

Exercise of stock options/vesting of RSUs 0.3 — 11.7 — — 11.7 — 11.7

Sale of common stock 0.1 — 13.7 — — 13.7 — 13.7

Cash dividends declared, $ 0.61 per share

— — — ( 693.3 ) — ( 693.3 ) — ( 693.3 )

Other — — — — — — 0.1 0.1

Balance, March 30, 2025

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

See Notes to Consolidated Financial Statements.

STARBUCKS CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY

For the Two Quarters Ended March 29, 2026 and March 30, 2025

(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 28, 2025

8 unchanged sentences

Other — — — — 0.2 0.2 — 0.2

Balance, December 29, 2024

Balance, March 29, 2026

1,139.5 $ 1.1 $ 832.1 $ ( 8,881.0 ) $ ( 417.3 ) $ ( 8,465.1 ) $ 7.4 $ ( 8,457.7 )

Balance, September 29, 2024

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

Net earnings — — — 1,165.0 1,165.0 0.1 1,165.1

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

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

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

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

Cash dividends declared, $ 1.22 per share

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

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

Balance, March 30, 2025

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

See Notes to Consolidated Financial Statements.

17 unchanged sentences

Note 17 Restructuring

Note 18 Subsequent Event

STARBUCKS CORPORATION

2 unchanged sentences

Financial Statement Preparation

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.

The unaudited consolidated financial statements as of March 29, 2026, and for the quarters and two quarters ended March 29, 2026 and March 30, 2025, have been prepared by Starbucks Corporation under the rules and regulations of the Securities and Exchange Commission (“SEC”).

In the opinion of management, the financial information for the quarters and two quarters ended March 29, 2026, and March 30, 2025, reflects all adjustments and accruals, which are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods.

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

2 unchanged sentences

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

The results of operations for the quarter 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”).

The results of operations for the quarter and two quarters ended March 29, 2026, 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

3 unchanged sentences

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.

In the second quarter of fiscal 2026, management approved a restructuring plan to relocate certain functions of our support organization to an additional office in Nashville, Tennessee, further supporting the Company’s “Back to Starbucks” strategy and the intention to establish a more strategic presence in the Southeast region of the United States.

Refer to Note 17 , Restructuring, for further discussion.

7 unchanged sentences

• 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.

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

Gains are not recognized until the date of sale.

1 unchanged sentence

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.

Under the agreement, Boyu Capital acquired a 60% interest in Starbucks retail operations in China.

Starbucks retained a 40% interest in the joint venture and continues 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.

2 unchanged sentences

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

On March 30, 2026, in the third quarter of fiscal 2026, the previously announced transaction subsequently closed, and we transitioned 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 under the equity method of accounting, and recording revenues related to product sales and royalties.

The disposal group was deconsolidated from our financial statements and will be reported as part of our licensed portfolio in the third quarter of fiscal 2026.

Refer to Note 18 , Subsequent Event, for further discussion.

Recent Accounting Pronouncements

21 unchanged sentences

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.

Under the agreement, Boyu Capital acquired a 60 % interest in Starbucks retail operations in China.

The partial divestiture resulted in the conversion of 7,991 company-operated stores to licensed stores within our International segment.

Starbucks retained 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 acquired its interest based on a cash-free, debt-free mutually agreed-upon total enterprise value of approximately $ 4 billion.

In the first quarter of 2026, we determined that the disposal group met the held-for-sale criteria and remained classified as held for sale as of March 29, 2026.

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 ):

As of March 29, 2026, 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 $ 570.0

18 unchanged sentences

Liabilities held for sale $ 1,685.6

On March 30, 2026, in the third quarter of fiscal 2026, the previously announced transaction subsequently closed for total consideration of $ 3.1 billion.

We transitioned 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 under the equity method of accounting, and recording revenues related to product sales and royalties.

The disposal group was deconsolidated from our financial statements and will be reported as part of our licensed portfolio in the third quarter of fiscal 2026.

Refer to Note 18 , Subsequent Event, for further discussion.

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

38 unchanged sentences

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

Dec 28, 2025 Sep 28, 2025

Mar 29, 2026 Sep 28, 2025

Cash Flow Hedges:

12 unchanged sentences

Location of gain/(loss)

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

Mar 29, 2026 Mar 30, 2025 Mar 29, 2026 Mar 30, 2025

Cash Flow Hedges:

8 unchanged sentences

8.4 13.1 24.1 27.7 Interest expense

Two Quarters Ended

Gains/(Losses) Recognized in

OCI Before Reclassifications Gains/(Losses) Reclassified from

AOCI to Earnings Location of gain/(loss)

Mar 29, 2026 Mar 30, 2025 Mar 29, 2026 Mar 30, 2025

Cash Flow Hedges:

Coffee $ ( 12.6 ) $ 13.4 $ ( 17.6 ) $ 45.1 Product and distribution costs

Cross-currency swaps — 0.9 — 1.4 Interest income and other, net

Dairy — ( 1.3 ) — 1.4 Product and distribution costs

Foreign currency - other 27.4 50.0 12.4 16.2 Licensed stores revenue

3.3 4.3 Product and distribution costs

Interest rates — — ( 2.4 ) ( 2.0 ) Interest expense

Net Investment Hedges:

Cross-currency swaps (1)

63.8 220.6 50.8 55.4 Interest expense

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

1 unchanged sentence

Gains/(Losses) Recognized in Earnings

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

Dec 28, 2025 Dec 29, 2024

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

Mar 29, 2026 Mar 30, 2025 Mar 29, 2026 Mar 30, 2025

Non-Designated Derivatives:

Dairy Interest income and other, net $ — $ — $ — $ 0.1

Cross-currency swaps

Interest income and other, net

( 2.0 ) — ( 2.0 ) —

Foreign currency - other Interest income and other, net 3.5 ( 2.8 ) 5.4 6.1

5 unchanged sentences

Notional amounts of outstanding derivative contracts (in millions) :

Dec 28, 2025 Sep 28, 2025

Mar 29, 2026 Sep 28, 2025

Coffee $ 193 $ 387

5 unchanged sentences

Derivative Assets

Balance Sheet Location Dec 28, 2025 Sep 28, 2025

Balance Sheet Location Mar 29, 2026 Sep 28, 2025

Designated Derivative Instruments (2) :

6 unchanged sentences

Derivative Liabilities

Balance Sheet Location Dec 28, 2025 Sep 28, 2025

Balance Sheet Location Mar 29, 2026 Sep 28, 2025

Designated Derivative Instruments:

7 unchanged sentences

Other long-term liabilities — 0.2

(1) The reduction in hedged notional in the current period reflects the maturity and early termination of Net Investment Hedges related to the divestiture of Starbucks retail operations in China.

The AOCI will be released to earnings in the third quarter of fiscal 2026 consistent with the timing of the transaction closing.

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

1 unchanged sentence

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

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

Mar 29, 2026 Sep 28, 2025 Mar 29, 2026 Sep 28, 2025

Location on the balance sheet

4 unchanged sentences

Fair Value Measurements at Reporting Date Using

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

Mar 29, 2026 Quoted Prices in Active Markets for Identical Assets

(Level 1) Significant Other Observable Inputs

16 unchanged sentences

Mortgage and other asset-backed securities 71.3 — 71.3 —

State and local government obligations 2.7 — 2.7 —

government treasury securities 80.4 80.4 — —

10 unchanged sentences

Fair Value Measurements at Reporting Date Using

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

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

(Level 1) Significant Other Observable Inputs

31 unchanged sentences

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

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

Gross unrealized holding gains and losses on available-for-sale debt securities, structured deposits, and marketable equity securities were not material as of March 29, 2026, and September 28, 2025.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

2 unchanged sentences

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

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

There were no material fair value adjustments during the two quarters ended March 29, 2026, and March 30, 2025.

Inventories (in millions) :

Dec 28, 2025 (2)

Mar 29, 2026 (2)

Unroasted $ 992.5 $ 911.2

6 unchanged sentences

(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.

As of March 29, 2026, we had committed to purchasing green coffee totaling $ 467 million under fixed-price contracts and an estimated $ 497 million under price-to-be-fixed contracts.

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

7 unchanged sentences

Property, Plant and Equipment, net

Dec 28, 2025 (1)

Mar 29, 2026 (1)

Land $ 54.9 $ 54.9

11 unchanged sentences

Accrued Liabilities

Dec 28, 2025 (1)

Mar 29, 2026 (1)

Accrued occupancy costs $ 58.2 $ 89.5

7 unchanged sentences

Store Operating Expenses

Quarter Ended

Dec 28, 2025 Dec 29, 2024

Quarter Ended Two Quarters Ended

Mar 29, 2026 Mar 30, 2025 Mar 29, 2026 Mar 30, 2025

Wages and benefits $ 2,645.3 $ 2,406.1 $ 5,304.0 $ 4,795.2

4 unchanged sentences

Indefinite-Lived Intangible Assets

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

(in millions) Mar 29, 2026 Sep 28, 2025

Trade names, trademarks and patents $ 79.5 $ 79.5

Finite-Lived Intangible Assets

Dec 28, 2025 Sep 28, 2025

Mar 29, 2026 Sep 28, 2025

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

7 unchanged sentences

(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 ):

Amortization expense for finite-lived intangible assets was $ 1.2 million and $ 2.7 million for the quarter and two quarters ended March 29, 2026, respectively, and $ 5.8 million and $ 11.4 million for the quarter and two quarters ended March 30, 2025, respectively.

Estimated future amortization expense as of March 29, 2026 ( in millions ):

Fiscal Year Total

2026 (excluding the quarter ended December 28, 2025)

2026 (excluding the two quarters ended March 29, 2026)

Thereafter 60.6

4 unchanged sentences

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

Planned divestiture (1)

Divestiture (1)

— ( 2,100.0 ) — — ( 2,100.0 )

0.2 26.0 — — 26.2

Goodwill balance at December 28, 2025

Goodwill balance at March 29, 2026

$ 490.8 $ 768.6 $ 34.7 $ 1.0 $ 1,295.1

12 unchanged sentences

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 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.

As of March 29, 2026, we were in compliance with all applicable covenants.

No amounts were outstanding under our 2025 credit facility as of March 29, 2026, or September 28, 2025.

Short-term Debt

2 unchanged sentences

The proceeds from borrowings under our commercial paper program may be used for working capital needs, capital expenditures, and other corporate purposes, including, but not limited to, business expansion, payment of cash dividends on our common stock, and share repurchases.

We had no borrowings outstanding under our commercial paper program as of December 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.

We had no borrowings outstanding under our commercial paper program as of March 29, 2026, and September 28, 2025.

Our total available contractual borrowing capacity for general corporate purposes was $ 3.0 billion as of the end of our second 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:

3 unchanged sentences

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

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

As of March 29, 2026, 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) :

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

Mar 29, 2026 Sep 28, 2025 Stated Interest Rate Effective Interest Rate (1)

Issuance Amount Estimated Fair Value Amount Estimated Fair Value

30 unchanged sentences

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

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

The following table summarizes our long-term debt maturities as of March 29, 2026, by fiscal year ( in millions ):

Fiscal Year Total

2026 (excluding the quarter ended December 28, 2025)

2026 (excluding the two quarters ended March 29, 2026)

Thereafter 8,850.0

1 unchanged sentence

The components of lease costs (in millions) :

Quarter Ended

Dec 28, 2025 Dec 29, 2024

Quarter Ended Two Quarters Ended

Mar 29, 2026 Mar 30, 2025 Mar 29, 2026 Mar 30, 2025

Operating lease costs (1) (2)

4 unchanged sentences

(1) Includes immaterial amounts of sublease income and rent concessions.

(2) The decrease in fiscal 2026 was a result of Starbucks retail operations in China being classified as held for sale during the fiscal quarter, which required us to cease operating lease ROU asset amortization of the related long-lived assets.

The following table includes supplemental information (in millions) :

Quarter Ended

Dec 28, 2025 Dec 29, 2024

Two Quarters Ended

Mar 29, 2026 Mar 30, 2025

Cash paid related to operating lease liabilities $ 1,049.2 $ 928.8

Operating lease liabilities arising from obtaining ROU assets (1)

Dec 28, 2025 Dec 29, 2024

630.0 1,076.6

Mar 29, 2026 Mar 30, 2025

Weighted-average remaining operating lease term (1)

3 unchanged sentences

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.

These balances were not material as of March 29, 2026, and September 28, 2025.

Finance lease costs were also immaterial for the quarter and two quarters ended March 29, 2026, and March 30, 2025.

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

Fiscal Year Total (1)

2026 (excluding the quarter ended December 28, 2025)

2026 (excluding the two quarters ended March 29, 2026)

Thereafter 4,660.7

3 unchanged sentences

(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.

As of March 29, 2026, we have entered into operating leases that have not yet commenced of $ 678.5 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.

During the quarter and two quarters ended March 29, 2026, total lease exit costs of $ 3.0 million and $ 51.9 million, respectively, were recorded in restructuring and impairments on the consolidated statement of earnings.

See Note 17 , Restructuring, for further discussion.

1 unchanged sentence

Our deferred revenue primarily consists of the prepaid royalty from Nestlé, for which we have continuing performance obligations to support the Global Coffee Alliance, our unredeemed stored value card liability, and unredeemed loyalty points (“Stars”) associated with our loyalty program.

As of December 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.

As of March 29, 2026, the current and long-term deferred revenue related to the Nestlé up-front payment was $ 177.0 million and $ 5.6 billion, respectively.

As of 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 March 29, 2026, and March 30, 2025, we recognized $ 44.1 million of prepaid royalty revenue related to Nestlé.

During each of the two quarters ended March 29, 2026, and March 30, 2025, we recognized $ 88.2 million of prepaid royalty revenue related to Nestlé.

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

Quarter Ended December 28, 2025

Stored value cards and loyalty program at September 28, 2025

Quarter Ended March 29, 2026

Stored value cards and loyalty program at December 28, 2025

Revenue deferred - card activations, card reloads and Stars earned 3,577.0

Revenue recognized - card and Stars redemptions and breakage ( 3,900.8 )

Planned divestiture (2)

Divestiture (2)

Stored value cards and loyalty program at March 29, 2026 (3)

Quarter Ended March 30, 2025

Stored value cards and loyalty program at December 29, 2024

Quarter Ended December 29, 2024

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

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

Stored value cards and loyalty program at March 30, 2025 (3)

Two Quarters Ended March 29, 2026

Stored value cards and loyalty program at September 28, 2025

1 unchanged sentence

Revenue recognized - card and Stars redemptions and breakage ( 7,724.4 )

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

Divestiture (2)

Stored value cards and loyalty program at March 29, 2026 (3)

Two Quarters Ended March 30, 2025

Stored value cards and loyalty program at September 29, 2024

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

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

Stored value cards and loyalty program at March 30, 2025 (3)

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

(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.

(3) As of March 29, 2026, and March 30, 2025, approximately $ 1.6 billion and $ 1.7 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

December 28, 2025

March 29, 2026

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

4 unchanged sentences

Net gains/(losses) in AOCI, end of period $ ( 0.7 ) $ 55.9 $ 367.1 $ ( 839.6 ) $ ( 417.3 )

December 29, 2024

March 30, 2025

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

2 unchanged sentences

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

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

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

March 29, 2026

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

Net gains/(losses) recognized in OCI before reclassifications ( 1.6 ) 10.0 47.7 18.3 74.4

Net (gains)/losses reclassified from AOCI to earnings 0.4 5.0 ( 38.0 ) ( 32.6 )

Other comprehensive income/(loss) attributable to Starbucks ( 1.2 ) 15.0 9.7 18.3 41.8

Other comprehensive income/(loss) attributable to NCI — — — 0.2 0.2

Net gains/(losses) in AOCI, end of period $ ( 0.7 ) $ 55.9 $ 367.1 $ ( 839.6 ) $ ( 417.3 )

March 30, 2025

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

Net gains/(losses) recognized in OCI before reclassifications 0.1 46.6 164.9 ( 220.6 ) ( 9.0 )

Net (gains)/losses reclassified from AOCI to earnings 0.4 ( 49.8 ) ( 41.5 ) — ( 90.9 )

Other comprehensive income/(loss) attributable to Starbucks 0.5 ( 3.2 ) 123.4 ( 220.6 ) ( 99.9 )

Other comprehensive income/(loss) attributable to NCI — — — ( 0.3 ) ( 0.3 )

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

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

2 unchanged sentences

the Statements of Earnings

Dec 28, 2025 Dec 29, 2024

Mar 29, 2026 Mar 30, 2025

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

4 unchanged sentences

$ 7.3 $ 42.6 Net of tax

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

Two Quarters Ended

Components Amounts Reclassified from AOCI Affected Line Item in

the Statements of Earnings

Mar 29, 2026 Mar 30, 2025

Gains/(losses) on available-for-sale debt securities $ ( 0.5 ) $ ( 0.4 ) Interest income and other, net

Gains/(losses) on cash flow hedges ( 4.3 ) 66.4 Please refer to Note 3 , Derivative Financial Instruments for additional information.

Gains/(losses) on net investment hedges 50.8 55.4 Interest expense

46.0 121.4 Total before tax

( 13.4 ) ( 30.5 ) Tax (expense)/benefit

$ 32.6 $ 90.9 Net of tax

During the two quarters ended March 29, 2026, and March 30, 2025, we made no share repurchases.

As of March 29, 2026, 29.8 million shares of common stock remained available for repurchase under current authorizations.

During the second quarter of fiscal 2026, our Board of Directors approved a quarterly cash dividend to shareholders of $ 0.62 per share to be paid on May 29, 2026, to shareholders of record as of the close of business on May 15, 2026.

Employee Stock Plans

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.

As of March 29, 2026 , there were 67.3 million shares of common stock available for issuance pursuant to future equity-based compensation awards and 8.8 million sh ares available for issuance under our employee stock purchase plan.

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

Quarter Ended

Dec 28, 2025 Dec 29, 2024

Quarter Ended Two Quarters Ended

Mar 29, 2026 Mar 30, 2025 Mar 29, 2026 Mar 30, 2025

Restricted Stock Units (“RSUs”) $ 93.2 $ 77.8 $ 219.3 $ 178.3

Total stock-based compensation expense $ 93.2 $ 77.8 $ 219.3 $ 178.3

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

RSU transactions from September 28, 2025 through March 29, 2026 ( in millions ):

Nonvested, September 28, 2025

Forfeited/expired ( 0.5 )

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).

Nonvested, March 29, 2026

Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of March 29, 2026

The effective tax rate for the quarter ended March 29, 2026, was 29.8 % compared to 23.5 % for the same period in fiscal 2025.

The increase was primarily due to the impact of reorganizing certain entities in China (approximately 280 basis points), the $8 million discrete increase to the change in indefinite reinvestment assertions as a result of classifying the Starbucks retail operations in China as held for sale in the first quarter of fiscal 2026 (approximately 110 basis points), and the effect of higher pre-tax earnings and the proportionate impacts from certain permanent differences and discrete items.

The effective tax rate for the two quarters ended March 29, 2026, was 46.1 % compared to 23.6 % for the same period in fiscal 2025.

The increase was primarily due to the $273 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 1,830 basis points), lapping the discrete impact of a tax status change for a certain foreign entity in the first quarter of fiscal 2025 (approximately 200 basis points), and the impact of reorganizing certain entities in China (approximately 130 basis points).

Earnings per Share

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

Quarter Ended

Dec 28, 2025 Dec 29, 2024

Quarter Ended Two Quarters Ended

Mar 29, 2026 Mar 30, 2025 Mar 29, 2026 Mar 30, 2025

Net earnings attributable to Starbucks $ 510.9 $ 384.2 $ 804.2 $ 1,165.0

17 unchanged sentences

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.

Our North 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.

6 unchanged sentences

Consolidated revenue mix by product type ( in millions ):

Quarter Ended

Dec 28, 2025 Dec 29, 2024

Quarter Ended Two Quarters Ended

Mar 29, 2026 Mar 30, 2025 Mar 29, 2026 Mar 30, 2025

$ 5,659.0 59 % $ 5,293.6 60 % $ 11,603.4 60 % $ 10,971.6 60 %

4 unchanged sentences

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

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

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

Information by geographic area ( in millions ):

Quarter Ended Dec 28, 2025 Dec 29, 2024

Quarter Ended

Two Quarters Ended

Mar 29, 2026 Mar 30, 2025 Mar 29, 2026 Mar 30, 2025

Net revenues (1) :

United States $ 6,930.3 $ 6,403.5 $ 14,174.3 $ 13,384.7

809.2 752.1 1,644.9 1,508.8

Other countries 1,792.0 1,606.0 3,627.4 3,265.9

Total $ 9,531.5 $ 8,761.6 $ 19,446.6 $ 18,159.4

Dec 28, 2025 Sep 28, 2025

Mar 29, 2026 Sep 28, 2025

Long-lived assets:

8 unchanged sentences

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.

and China consist primarily of revenues from Japan, Canada, and the U.K., which together account for approximately 72 % of net revenues from other countries for the quarter and two quarters ended March 29, 2026, and 74 % for the quarter and two quarters ended March 30, 2025, respectively.

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

2 unchanged sentences

Corporate and Other

December 28, 2025

March 29, 2026

Total net revenues $ 6,893.8 $ 2,051.1 $ 567.8 $ 18.8 $ 9,531.5

16 unchanged sentences

Corporate and Other

December 29, 2024

March 30, 2025

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

5 unchanged sentences

Restructuring and impairments

21.3 16.8 0.9 77.2 116.2

Total operating expenses

5 unchanged sentences

Earnings before income taxes $ 502.1

Two Quarters Ended

North America International Channel

Corporate and Other

March 29, 2026

Total net revenues $ 14,174.3 $ 4,116.0 $ 1,090.5 $ 65.8 $ 19,446.6

Product and distribution costs 4,204.3 1,497.8 723.1 56.9 6,482.1

Store operating expenses

7,477.0 1,484.0 — — 8,961.0

Other operating expenses 115.8 112.3 31.5 2.1 261.7

Depreciation and amortization expenses 598.3 102.7 — 63.3 764.3

General and administrative expenses 186.7 184.9 1.9 883.3 1,256.8

Restructuring and impairments 45.3 52.4 0.1 15.4 113.2

Total operating expenses

12,627.4 3,434.1 756.6 1,021.0 17,839.1

Income from equity method investees — ( 0.5 ) 111.8 — 111.3

Operating income/(loss) $ 1,546.9 $ 681.4 $ 445.7 $ ( 955.2 ) $ 1,718.8

Interest income and other, net 50.1

Interest expense ( 276.0 )

Earnings before income taxes $ 1,492.9

Two Quarters Ended

North America International Channel

Corporate and Other

March 30, 2025

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

Product and distribution costs 3,774.6 1,306.8 517.5 32.4 5,631.3

Store operating expenses 6,890.1 1,489.0 — — 8,379.1

Other operating expenses 147.0 115.7 28.4 0.2 291.3

Depreciation and amortization expenses 588.1 178.1 — 60.0 826.2

General and administrative expenses 193.9 177.2 3.1 923.8 1,298.0

Restructuring and impairments

21.3 16.8 0.9 77.2 116.2

Total operating expenses

11,615.0 3,283.6 549.9 1,093.6 16,542.1

Income from equity method investees — ( 0.7 ) 106.2 — 105.5

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

Interest income and other, net $ 56.2

Interest expense ( 254.5 )

Earnings before income taxes $ 1,524.5

Restructuring

1 unchanged sentence

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

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

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.

During the quarter and two quarters ended March 29, 2026, 62 and 227 stores, respectively, were closed, and approximately $ 25.1 million and $ 113.2 million, respectively, 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

Restructuring charges under this plan were immaterial during the quarter ended March 29, 2026.

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

Quarter Ended March 29, 2026

North America International Channel

6 unchanged sentences

$ 5.3 $ 8.8 $ ( 0.1 ) $ 11.1 $ 25.1

Two Quarters Ended March 29, 2026

North America International Channel

Corporate and Other

Disposal and impairment of store assets $ 39.0 $ 0.1 $ — $ — $ 39.1

Employee severance, separation and other costs 1.6 5.1 0.1 15.4 22.2

Amortization of ROU lease assets and other lease exit costs

4.7 47.2 — — 51.9

Total Restructuring and impairment costs

$ 45.3 $ 52.4 $ 0.1 $ 15.4 $ 113.2

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

7 unchanged sentences

( 137.9 ) ( 93.0 ) ( 230.9 )

Planned divestiture (2)

Divestiture (2)

( 2.6 ) ( 1.9 ) ( 4.5 )

( 14.2 ) — ( 14.2 )

Ending balance at December 28, 2025

Ending balance at March 29, 2026

$ 26.4 $ 195.9 $ 222.3

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

(1) The operating lease liability balance for total stores under the restructuring plan was $ 243.2 million as of March 29, 2026.

(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.

As of March 29, 2026 , 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.

We anticipate substantial completion of the fiscal 2025 restructuring plan and remaining store closures within fiscal year 2026.

The Company estimates that it will incur approximatel y $ 150 million related to that plan during the remainder of fiscal 2026, primarily related to other lease exit costs and accelerated ROU lease asset amortization in our North America operating segment.

The majority of the accrued liability balance as of March 29, 2026, relates to restructuring charges expected to be paid out by the end of fiscal year 2026.

Subsequent Event

On March 30, 2026, following completion of the second fiscal quarter of 2026, we closed the previously announced divestiture of 60 % of our Starbucks retail operations in China to Boyu Capital, our joint venture partner, for total consideration of $ 3.1 billion .

Starbucks retained a 40 % interest in the joint venture and continues to own and license the Starbucks brand and intellectual property to the new entity.

The partial divestiture resulted in the conversion of 7,991 company-operated stores to licensed stores within our International segment.

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

As of March 29, 2026, all assets and liabilities related to the retail operations in China were classified as held for sale within the Company’s Consolidated Balance Sheets.

See Note 2 , Acquisitions and Divestitures, for further discussion.

While the Company is still evaluating the effects the transaction will have on its fiscal third quarter financial results, we anticipate recognizing a material pre-tax gain on the sale.

Following the closing, we transitioned 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 under the equity method of accounting, and recording revenues related to product sales and royalties.

The disposal group was deconsolidated from our financial statements and will be reported as part of our licensed portfolio in the third quarter of fiscal 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