What changed in this filing

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Item 1. Financial Statements

2026-07-29 compared with 2026-04-28 · 262 added, 209 removed, 824 unchanged (36% of the section changed)

3 unchanged sentences

(in millions, except per share data, unaudited)

Quarter Ended Two Quarters Ended

Quarter Ended Three Quarters Ended

Net revenues:

13 unchanged sentences

Operating income 980.4 935.6 2,699.3 2,658.4

Net gain resulting from divestiture of certain operations 536.3 — 536.3 —

Interest income and other, net 37.2 25.6 87.3 81.8

12 unchanged sentences

See Notes to Consolidated Financial Statements.

Table of Conten t s

STARBUCKS CORPORATION

1 unchanged sentence

(in millions, unaudited)

Quarter Ended Two Quarters Ended

Quarter Ended Three Quarters Ended

Net earnings including noncontrolling interests $ 1,044.9 $ 558.5 $ 1,849.0 $ 1,723.5

16 unchanged sentences

See Notes to Consolidated Financial Statements.

Table of Conten t s

STARBUCKS CORPORATION

7 unchanged sentences

Prepaid expenses and other current assets 410.8 452.2

Assets held for sale

Total current assets 7,534.2 7,382.3

16 unchanged sentences

Current portion of long-term debt 1,498.4 1,498.9

Liabilities held for sale

Total current liabilities 9,916.9 10,210.4

16 unchanged sentences

See Notes to Consolidated Financial Statements.

Table of Conten t s

STARBUCKS CORPORATION

1 unchanged sentence

(in millions, unaudited)

Two Quarters Ended

Three Quarters Ended

OPERATING ACTIVITIES:

5 unchanged sentences

Distributions received from equity method investees 152.9 186.5

Net gain resulting from divestiture of certain operations ( 536.3 ) —

Stock-based compensation 290.4 244.3

10 unchanged sentences

Other operating assets and liabilities 163.0 104.1

Net cash provided by operating activities 1,962.2 2,364.0

Net cash provided by (used in) operating activities 3,604.1 3,365.7

INVESTING ACTIVITIES:

4 unchanged sentences

Acquisitions, net of cash acquired — ( 177.1 )

Net proceeds from the divestiture of certain operations 2,544.2 —

Other ( 116.4 ) ( 48.1 )

Net cash used in investing activities ( 653.3 ) ( 1,499.2 )

Net cash provided by (used in) investing activities 1,570.4 ( 2,094.9 )

FINANCING ACTIVITIES:

1 unchanged sentence

Repayments of short-term debt — ( 7.8 )

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

Repayments of long-term debt ( 2,815.9 ) —

2 unchanged sentences

Minimum tax withholdings on share-based awards ( 64.7 ) ( 80.6 )

Net cash used in financing activities ( 2,432.6 ) ( 1,421.3 )

Other — ( 9.2 )

Net cash provided by (used in) financing activities ( 4,944.2 ) ( 365.2 )

Effect of exchange rate changes on cash and cash equivalents ( 0.3 ) ( 19.2 )

Net change in cash balances classified as assets held for sale ( 570.0 ) —

Net increase/(decrease) in cash and cash equivalents 230.0 886.4

7 unchanged sentences

See Notes to Consolidated Financial Statements.

Table of Conten t s

STARBUCKS CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY

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

For the Quarter Ended June 28, 2026, and June 29, 2025

(in millions, except per share data, unaudited)

6 unchanged sentences

Shares Amount

Balance, December 28, 2025

Balance, March 29, 2026

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

7 unchanged sentences

— — — — 0.2 0.2 — 0.2

Balance, March 29, 2026

Balance, June 28, 2026

1,139.8 $ 1.1 $ 915.0 $ ( 8,542.5 ) $ ( 47.9 ) $ ( 7,674.3 ) $ 7.2 $ ( 7,667.1 )

Balance, December 29, 2024

Balance, March 30, 2025

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

7 unchanged sentences

Other — — — — 0.1 0.1 — 0.1

Balance, March 30, 2025

Balance, June 29, 2025

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

See Notes to Consolidated Financial Statements.

Table of Conten t s

STARBUCKS CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY

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

For the Three Quarters Ended June 28, 2026, and June 29, 2025

(in millions, except per share data, unaudited)

16 unchanged sentences

Other — — — — 0.4 0.4 — 0.4

Balance, March 29, 2026

Balance, June 28, 2026

1,139.8 $ 1.1 $ 915.0 $ ( 8,542.5 ) $ ( 47.9 ) $ ( 7,674.3 ) $ 7.2 $ ( 7,667.1 )

9 unchanged sentences

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

Balance, March 30, 2025

Balance, June 29, 2025

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

See Notes to Consolidated Financial Statements.

Table of Conten t s

STARBUCKS CORPORATION

15 unchanged sentences

Note 16 Segment Reporting

Note 17 Restructuring

Note 18 Subsequent Event

Note 17 Restructuring and Impairments

Table of Conten t s

STARBUCKS CORPORATION

2 unchanged sentences

Financial Statement Preparation

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.

The unaudited consolidated financial statements as of June 28, 2026, and for the quarters and three quarters ended June 28, 2026 and June 29, 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 three quarters ended June 28, 2026, and June 29, 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 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”).

The results of operations for the quarter and three quarters ended June 28, 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

In the fourth quarter of fiscal 2024 , we announced our “Back to Starbucks” strategy, which was implemented with the goal to bring customers back to our stores and return to growth by revitalizing coffeehouses, enhancing the customer experience, and improving efficiency.

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

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

As part of the Company’s “Back to Starbucks” strategy, the following restructuring plans were approved.

Fiscal 2025 Restructuring Plans

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

In the fourth quarter of fiscal 2025 , we announced an additional fiscal 2025 restructuring plan involving the closure of coffeehouses and the further transformation of our support organization.

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.

Fiscal 2026 Restructuring Plans

In the second quarter of fiscal 2026, management approved a fiscal 2026 restructuring plan to relocate certain functions of our support organization to an additional office in Nashville, Tennessee, with the intention to establish a more strategic presence in the Southeast region of the United States.

In the third quarter of fiscal 2026, we announced an additional fiscal 2026 restructuring plan focused on further transformation of our global support organization and non-retail facilities, as well as reducing the future operational complexity of our Starbucks Reserve and Roastery locations resulting in a reassessment and impairment of the associated asset group.

Refer to Note 17 , Restructuring and Impairments, for further discussion.

Assets Held for Sale

4 unchanged sentences

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

Table of Conten t s

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

4 unchanged sentences

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 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.

During the first and second quarters 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 right-of-use (“ROU”) asset amortization of the related long-lived assets, resulting in reduced depreciation and amortization and store operating expenses.

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

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

On March 30, 2026, in the third quarter of fiscal 2026, the previously announced transaction closed, and as such, the disposal group was no longer classified as held for sale on the consolidated balance sheets.

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

10 unchanged sentences

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

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

We have substantially completed our evaluation of these amendments and expect the adoption to result in expanded income tax disclosures, including an enhanced rate reconciliation and cash income taxes paid disclosures.

We do not expect the adoption to have a material impact on our consolidated financial statements.

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

5 unchanged sentences

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

Table of Conten t s

Acquisitions and Divestitures

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

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

Under the agreement, Boyu Capital 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 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

Accounts receivable, net 63.7

Inventories 112.9

Prepaid expenses and other current assets 54.5

Property, plant and equipment, net 912.4

Operating lease, right-of-use asset 1,075.6

Deferred income taxes, net 98.0

Other long-term assets 56.3

Goodwill 2,100.0

Assets held for sale $ 5,043.4

Accounts payable $ 129.6

Accrued liabilities 119.7

Accrued payroll and benefits 106.0

Current portion of operating lease liability 226.6

Stored value card liability and current portion of deferred revenue 187.5

Short-term debt

Operating lease liability 829.3

Deferred revenue

Other long-term liabilities 68.0

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 March 30, 2026, we completed the divestiture of Starbucks retail operations in China (“the disposal group”), which marked a significant milestone in the Company’s long-term strategy to unlock sustainable, disciplined growth in China.

Under the agreement, Boyu Capital acquired a 60 % interest in Starbucks retail operations in China based on a cash-free, debt-free mutually agreed-upon total enterprise value of approximately $ 4 billion.

The transaction was partially financed with debt issued by the newly formed joint venture and w e received total consideration with respect to the transaction of $ 3.1 billion, inclusive of our share of the debt proceeds.

Starbucks retained a 40 % interest of approximately $ 1.2 billion, accounted for under the equity method of accounting.

Our carrying value of the retained investment includes the impact of debt raised by the joint venture in conjunction with the transaction.

The Company derecognized net assets with a carrying value of $ 3.4 billion, and reclassified approximately $ 282.8 million of cumulative translation adjustment (“CTA”) losses and net investment hedge losses of $ 99.7 million from accumulated other comprehensive income into earnings.

As a result, we recognized a pre-tax gain of $ 536.3 million, which was included in net gain resulting from divestiture of certain operations on our consolidated statements of earnings.

Total incremental income tax expense associated with the divestiture gain is approximately $ 198.6 million, of which approximately $ 147.8 million was recognized in the third quarter of fiscal 2026, with the remainder expected to be recognized in the fourth quarter of fiscal 2026.

The income tax expense is a component of the estimated annual effective tax rate and, accordingly, is recognized in proportion to year-to-date ordinary pre-tax income.

We also recognized transaction costs of approximately $ 44.1 million and $ 73.8 million for the quarter and three quarters ended June 28, 2026, respectively.

Upon completion of the divestiture, the disposal group was deconsolidated from our financial statements and 7,991 company-operated stores previously included in the disposal group were converted to licensed stores within our International segment.

We will continue to own and license the Starbucks brand and intellectual property to the joint venture.

For the third quarter of fiscal 2026, revenues generated from the joint venture were $ 52.5 million and related product and distribution costs were $ 18.5 million.

Accounts receivable from the joint venture as of June 28, 2026, was $ 30.7 million, on our consolidated balance sheets, primarily related to product sales to, and royalty revenues from, the joint venture.

As of June 28, 2026, the carrying value of this investment was $ 1.2 billion.

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

15 unchanged sentences

Refer to Note 8 , Debt, for additional information on our long-term debt.

Table of Conten t s

Foreign Currency

21 unchanged sentences

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

Mar 29, 2026 Sep 28, 2025

Jun 28, 2026 Sep 28, 2025

Cash Flow Hedges:

6 unchanged sentences

Foreign currency debt 135.2 135.2 0

Table of Conten t s

Pre-tax gains and losses on derivative contracts and foreign currency-denominated long-term debt designated as hedging instruments recognized in other comprehensive income (“OCI”) and reclassifications from AOCI to earnings ( in millions ):

4 unchanged sentences

Location of gain/(loss)

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

Jun 28, 2026 Jun 29, 2025 Jun 28, 2026 Jun 29, 2025

Cash Flow Hedges:

8 unchanged sentences

41.2 ( 77.4 ) 14.0 27.0 Interest expense

Two Quarters Ended

( 98.1 ) — Net gain on divestiture of certain operations (2)

Foreign currency — — ( 1.6 ) — Net gain on divestiture of certain operations (2)

Three Quarters Ended

Gains/(Losses) Recognized in

1 unchanged sentence

AOCI to Earnings Location of gain/(loss)

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

Jun 28, 2026 Jun 29, 2025 Jun 28, 2026 Jun 29, 2025

Cash Flow Hedges:

8 unchanged sentences

105.0 143.2 64.8 82.4 Interest expense

( 98.1 ) — Net gain on divestiture of certain operations (2)

Foreign currency — — ( 1.6 ) — Net gain on divestiture of certain operations (2)

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

(2) Net investment hedge losses accumulated in AOCI were reclassified to earnings due to the divestiture of Starbucks retail operations in China in the third quarter of fiscal 2026.

Table of Conten t s

Pre-tax gains and losses on non-designated derivatives and designated fair value hedging instruments and the related fair value hedged item recognized in earnings ( in millions ):

Gains/(Losses) Recognized in Earnings

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

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

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

Jun 28, 2026 Jun 29, 2025 Jun 28, 2026 Jun 29, 2025

Non-Designated Derivatives:

5 unchanged sentences

Diesel fuel and other commodities Interest income and other, net — — — ( 0.3 )

Interest Rates Interest expense ( 2.0 ) — ( 2.0 ) —

Fair Value Hedges:

3 unchanged sentences

Notional amounts of outstanding derivative contracts (in millions) :

Mar 29, 2026 Sep 28, 2025

Jun 28, 2026 Sep 28, 2025

Coffee $ 291 $ 387

3 unchanged sentences

Interest rate swaps 350 350

(1) The reduction in hedged notional reflects the maturity and early termination of net investment hedges in the second quarter of fiscal 2026 related to the divestiture of Starbucks retail operations in China.

The net investment hedge losses accumulated in AOCI were reclassified from AOCI to earnings in the third quarter of fiscal 2026 consistent with the timing of the transaction closing.

Table of Conten t s

Fair value of outstanding derivative contracts ( in millions ) including the location of the asset and/or liability on the consolidated balance sheets:

Derivative Assets

Balance Sheet Location Mar 29, 2026 Sep 28, 2025

Balance Sheet Location Jun 28, 2026 Sep 28, 2025

Designated Derivative Instruments (1) :

6 unchanged sentences

Derivative Liabilities

Balance Sheet Location Mar 29, 2026 Sep 28, 2025

Balance Sheet Location Jun 28, 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.

(1) 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

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

Jun 28, 2026 Sep 28, 2025 Jun 28, 2026 Sep 28, 2025

Location on the balance sheet

1 unchanged sentence

Additional disclosures related to cash flow gains and losses included in AOCI, as well as subsequent reclassifications to earnings, are included in Note 11 , Equity.

Table of Conten t s

Fair Value Measurements

1 unchanged sentence

Fair Value Measurements at Reporting Date Using

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

Jun 28, 2026 Quoted Prices in Active Markets for Identical Assets

(Level 1) Significant Other Observable Inputs

27 unchanged sentences

Total liabilities $ 20.1 $ — $ 20.1 $ —

Table of Conten t s

Fair Value Measurements at Reporting Date Using

33 unchanged sentences

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

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

Gross unrealized holding gains and losses on available-for-sale debt securities and marketable equity securities were not material as of June 28, 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 two quarters ended March 29, 2026, and March 30, 2025.

There were no material fair value adjustments during the three quarters ended June 28, 2026, and June 29, 2025.

Table of Conten t s

Inventories (in millions) :

Mar 29, 2026 (2)

Jun 28, 2026 (2)

Unroasted $ 954.1 $ 911.2

5 unchanged sentences

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

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

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.

(2) Balances exclude Starbucks retail operations in China that were divested during the third quarter of fiscal 2026.

As of June 28, 2026, we had committed to purchasing green coffee totaling $ 383 million under fixed-price contracts and an estimated $ 440 million under price-to-be-fixed contracts.

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

7 unchanged sentences

Property, Plant and Equipment, net

Mar 29, 2026 (1)

Jun 28, 2026 (1)

Land $ 59.6 $ 54.9

9 unchanged sentences

Property, plant and equipment, net $ 6,991.8 $ 8,493.5

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

(1) Balances exclude Starbucks retail operations in China that were divested in the third quarter of fiscal 2026.

Accrued Liabilities

Mar 29, 2026 (1)

Jun 28, 2026 (1)

Accrued occupancy costs $ 72.2 $ 89.5

5 unchanged sentences

Total accrued liabilities $ 2,688.6 $ 2,359.7

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

(1) Balances exclude Starbucks retail operations in China that were divested in the third quarter of fiscal 2026.

Table of Conten t s

Store Operating Expenses

Quarter Ended Two Quarters Ended

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

Quarter Ended Three Quarters Ended

Jun 28, 2026 Jun 29, 2025 Jun 28, 2026 Jun 29, 2025

Wages and benefits $ 2,457.8 $ 2,477.7 $ 7,761.8 $ 7,272.9

4 unchanged sentences

Indefinite-Lived Intangible Assets

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

(in millions) Jun 28, 2026 Sep 28, 2025

Trade names, trademarks and patents $ 79.5 $ 79.5

Finite-Lived Intangible Assets

Mar 29, 2026 Sep 28, 2025

Jun 28, 2026 Sep 28, 2025

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

6 unchanged sentences

Total finite-lived intangible assets $ 496.9 $ ( 404.1 ) $ 92.8 $ 1,246.2 $ ( 1,158.9 ) $ 87.3

(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 $ 1.2 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 ):

(1) The decrease in acquired and reacquired rights was a result of divesting Starbucks retail operations in China in the third quarter of fiscal 2026.

Amortization expense for finite-lived intangible assets was $ 2.9 million and $ 5.6 million for the quarter and three quarters ended June 28, 2026, respectively, and $ 4.4 million and $ 15.8 million for the quarter and three quarters ended June 29, 2025, respectively.

Estimated future amortization expense as of June 28, 2026 ( in millions ):

Fiscal Year Total

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

2026 (excluding the three quarters ended June 28, 2026)

Thereafter 60.1

Total estimated future amortization expense $ 92.8

Table of Conten t s

Changes in the carrying amount of goodwill by reportable operating segment (in millions) :

5 unchanged sentences

( 0.5 ) 17.7 — — 17.2

Goodwill balance at March 29, 2026

Goodwill balance at June 28, 2026

$ 490.1 $ 714.0 $ 34.7 $ — $ 1,238.8

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

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

(1) The decrease in the International segment was a result of divesting Starbucks retail operations in China in the third quarter of fiscal 2026.

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

Table of Conten t s

Revolving Credit Facility

9 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 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.

As of June 28, 2026, we were in compliance with all applicable covenants.

No amounts were outstanding under our 2025 credit facility as of June 28, 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 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.

We had no borrowings outstanding under our commercial paper program as of June 28, 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 third 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 March 29, 2026, and September 28, 2025, we had no borrowings outstanding under these credit facilities.

As of June 28, 2026, and September 28, 2025, we had no borrowings outstanding under these credit facilities.

Long-term Debt

In May 2026, the Company completed cash tender offers for certain series of its senior notes and repurchased approximately $ 1.3 billion aggregate principal amount of such notes using cash proceeds from the divestiture of Starbucks retail operations in China.

The notes repurchased consisted of:

• $ 273.5 million of the $ 750.0 million, 4.500 % Senior Notes (the “May 2028 notes”)

• $ 321.8 million of the $ 500.0 million, 4.800 % Senior Notes (the “May 2030 notes”)

• $ 110.4 million of the $ 500.0 million, 5.000 % Senior Notes (the “February 2034 notes”)

• $ 410.2 million of the $ 500.0 million, 5.400 % Senior Notes (the “May 2035 notes”)

• $ 200.0 million of the $ 1.0 billion, 4.500 % Senior Notes (the “November 2048 notes”)

Table of Conten t s

In connection with the redemptions, the Company recognized an immaterial gain on partial extinguishment of debt for the quarter ended June 28, 2026, which is included in Interest income and other, net in the consolidated statement of earnings.

In determining the value of the gain, the Company expensed the proportional amount of the related unamortized discount, premium, and debt issuance costs attributable to the repurchased notes.

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

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

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

Issuance Amount Estimated Fair Value Amount Estimated Fair Value

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

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

Table of Conten t s

The following table summarizes our long-term debt maturities as of June 28, 2026, by fiscal year ( in millions ):

Fiscal Year Total

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

2026 (excluding the three quarters ended June 28, 2026)

Thereafter 8,129.4

Total $ 13,384.1

Table of Conten t s

The components of lease costs (in millions) :

Quarter Ended Two Quarters Ended

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

Quarter Ended Three Quarters Ended

Jun 28, 2026 Jun 29, 2025 Jun 28, 2026 Jun 29, 2025

Operating lease costs (1)

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(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) :

Two Quarters Ended

Mar 29, 2026 Mar 30, 2025

Three Quarters Ended

Jun 28, 2026 Jun 29, 2025

Cash paid related to operating lease liabilities $ 1,494.8 $ 1,411.9

1 unchanged sentence

882.8 1,489.0

Mar 29, 2026 Mar 30, 2025

Jun 28, 2026 Jun 29, 2025

Weighted-average remaining operating lease term (1)

1 unchanged sentence

Weighted-average operating lease discount rate (1)

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

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

These balances were not material as of 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.

(1) The fiscal 2026 amounts exclude Starbucks retail operations in China that were divested during the third quarter of fiscal 2026, and the fiscal 2025 amounts include leases obtained in the acquisition of 23.5 Degrees Topco Limited.

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

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

Finance lease costs were also immaterial for the quarter and three quarters ended June 28, 2026, and June 29, 2025.

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

Fiscal Year Total (1)

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

2026 (excluding the three quarters ended June 28, 2026)

Thereafter 4,782.6

2 unchanged sentences

Total $ 9,155.5

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

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.

(1) Balances exclude Starbucks retail operations in China that were divested in the third quarter of fiscal 2026.

As of June 28, 2026, we have entered into operating leases that have not yet commenced of $ 583.4 million, primarily related to real estate leases.

These leases will commence between fiscal year 2026 and fiscal year 2030 with lease terms ranging from 10 to 20 years.

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

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.

During the quarter and three quarters ended June 28, 2026, total lease costs of $ 112.9 million and $ 164.8 million, respectively, were recorded in restructuring and impairments on the consolidated statement of earnings.

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

See Note 17 , Restructuring and Impairments, for further discussion.

Table of Conten t s

Deferred Revenue

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

As of March 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 June 28, 2026, the current and long-term deferred revenue related to the Nestlé up-front payment was $ 177.0 million and $ 5.5 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.

During each of the quarters ended June 28, 2026, and June 29, 2025, we recognized $ 44.1 million of prepaid royalty revenue related to Nestlé.

During each of the three quarters ended June 28, 2026, and June 29, 2025, we recognized $ 132.3 million of prepaid royalty revenue related to Nestlé.

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

Quarter Ended March 29, 2026

Stored value cards and loyalty program at December 28, 2025

Quarter Ended June 28, 2026

Stored value cards and loyalty program at March 29, 2026 (2)

Revenue deferred - card activations, card reloads and Stars earned 3,672.2

Revenue recognized - card and Stars redemptions and breakage ( 3,678.9 )

Divestiture (2)

Stored value cards and loyalty program at June 28, 2026 (3)

Quarter Ended June 29, 2025

Stored value cards and loyalty program at March 30, 2025

Quarter Ended March 30, 2025

Stored value cards and loyalty program at December 29, 2024

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

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

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

Two Quarters Ended March 29, 2026

Stored value cards and loyalty program at June 29, 2025 (3)

Three Quarters Ended June 28, 2026

Stored value cards and loyalty program at September 28, 2025

2 unchanged sentences

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 June 28, 2026 (3)

Three Quarters Ended June 29, 2025

Stored value cards and loyalty program at September 29, 2024

1 unchanged sentence

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

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

Stored value cards and loyalty program at June 29, 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 March 29, 2026, and March 30, 2025, approximately $ 1.6 billion and $ 1.7 billion, respectively, of these amounts were current.

(2) The balance excludes Starbucks retail operations in China that were classified as held for sale in the first quarter of fiscal 2026 and divested in the third quarter of fiscal 2026.

(3) As of June 28, 2026 and June 29, 2025, approximately $ 1.6 billion and $ 1.7 billion, respectively, of these amounts were current.

Table of Conten t s

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

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

March 29, 2026

June 28, 2026

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

4 unchanged sentences

Net gains/(losses) in AOCI, end of period $ ( 0.7 ) $ 51.0 $ 461.9 $ ( 560.1 ) $ ( 47.9 )

March 30, 2025

June 29, 2025

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

2 unchanged sentences

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

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

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

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

March 29, 2026

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

June 28, 2026

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

4 unchanged sentences

Net gains/(losses) in AOCI, end of period $ ( 0.7 ) $ 51.0 $ 461.9 $ ( 560.1 ) $ ( 47.9 )

March 30, 2025

June 29, 2025

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

4 unchanged sentences

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

Table of Conten t s

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

2 unchanged sentences

the Statements of Earnings

Mar 29, 2026 Mar 30, 2025

Jun 28, 2026 Jun 29, 2025

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

1 unchanged sentence

Gains/(losses) on net investment hedges ( 85.7 ) 27.0 Interest expense

Translation adjustment (1)

Divestiture of retail operations in China ( 282.8 ) — Net gain resulting from divestiture of certain operations

( 361.0 ) 50.3 Total before tax

1 unchanged sentence

$ ( 340.9 ) $ 39.3 Net of tax

Two Quarters Ended

Three Quarters Ended

Components Amounts Reclassified from AOCI Affected Line Item in

the Statements of Earnings

Mar 29, 2026 Mar 30, 2025

Jun 28, 2026 Jun 29, 2025

Gains/(losses) on available-for-sale debt securities $ ( 0.8 ) $ ( 0.6 ) Interest income and other, net

1 unchanged sentence

Gains/(losses) on net investment hedges ( 34.9 ) 82.4 Interest expense

Translation adjustment (1)

Divestiture of retail operations in China ( 282.8 ) — Net gain resulting from divestiture of certain operations

( 315.0 ) 171.7 Total before tax

1 unchanged sentence

$ ( 308.3 ) $ 130.2 Net of tax

In addition to 2.4 billion shares of authorized common stock with $ 0.001 par value per share, we have 7.5 million shares of authorized preferred stock, none of which was outstanding as of March 29, 2026.

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.

(1) Reclassification of CTA from AOCI to earnings upon sale or liquidation of foreign businesses.

During the three quarters ended June 28, 2026, and June 29, 2025, we made no share repurchases.

As of June 28, 2026, 29.8 million shares of common stock remained available for repurchase under current authorizations.

During the third quarter of fiscal 2026, our Board of Directors approved a quarterly cash dividend to shareholders of $ 0.62 per share to be paid on August 28, 2026, to shareholders of record as of the close of business on August 14, 2026.

Employee Stock Plans

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.

As of June 28, 2026 , there were 69.6 million shares of common stock available for issuance pursuant to future equity-based compensation awards and 8.7 million s h 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 Two Quarters Ended

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

Quarter Ended Three Quarters Ended

Jun 28, 2026 Jun 29, 2025 Jun 28, 2026 Jun 29, 2025

Restricted Stock Units (“RSUs”) $ 71.1 $ 66.0 $ 290.4 $ 244.3

Total stock-based compensation expense $ 71.1 $ 66.0 $ 290.4 $ 244.3

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

Table of Conten t s

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

Nonvested, September 28, 2025

Forfeited/expired ( 1.8 )

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).

Nonvested, June 28, 2026

Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of June 28, 2026

The effective tax rate for the quarter ended June 28, 2026, was 26.4 % compared to 31.8 % for the same period in fiscal 2025.

The decrease was primarily due to lapping the discrete impact of changes in indefinite reinvestment assertions for certain foreign entities in the third quarter of fiscal 2025 (approximately 850 basis points), partially offset by impacts resulting from the divestiture of Starbucks retail operations in China in the third quarter of fiscal 2026 (370 basis points).

The effective tax rate for the three quarters ended June 28, 2026, was 36.5 % compared to 26.5 % 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 640 basis points), impacts resulting from the divestiture of Starbucks retail operations in China in the third quarter of fiscal 2026 (approximately 240 basis points) and lapping the discrete impact of a tax status change for a certain foreign entity in the first quarter of fiscal 2025 (approximately 130 basis points).

Earnings per Share

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

Quarter Ended Two Quarters Ended

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

Quarter Ended Three Quarters Ended

Jun 28, 2026 Jun 29, 2025 Jun 28, 2026 Jun 29, 2025

Net earnings attributable to Starbucks $ 1,045.3 $ 558.3 $ 1,849.6 $ 1,723.2

11 unchanged sentences

Refer to the Risk Factors in Part I, Item 1A of our most recently filed 10-K for further discussion of potential risks to our brand and related impacts on our financial results.

Table of Conten t s

Segment Reporting

13 unchanged sentences

Consolidated revenue mix by product type ( in millions ):

Quarter Ended Two Quarters Ended

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

Quarter Ended Three Quarters Ended

Jun 28, 2026 Jun 29, 2025 Jun 28, 2026 Jun 29, 2025

$ 5,444.0 58 % $ 5,752.0 61 % $ 17,047.5 59 % $ 16,723.8 61 %

7 unchanged sentences

Quarter Ended

Two Quarters Ended

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

Three Quarters Ended

Jun 28, 2026 Jun 29, 2025 Jun 28, 2026 Jun 29, 2025

Net revenues (1) :

3 unchanged sentences

Total $ 9,322.7 $ 9,456.0 $ 28,769.3 $ 27,615.4

Mar 29, 2026 Sep 28, 2025

Jun 28, 2026 Sep 28, 2025

Long-lived assets:

4 unchanged sentences

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

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

(2) The fiscal year 2026 balance excludes Starbucks retail operations in China that were divested during the third quarter of fiscal 2026.

Table of Conten t s

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

1 unchanged sentence

Revenues from countries other than the U.S.

and China consist primarily of revenues from Japan, Canada, and the U.K., which together account for approximately 72 % of net revenues from other countries for the quarter and two quarters ended March 29, 2026, and 74 % for the quarter and two quarters ended March 30, 2025, 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 three quarters ended June 28, 2026, and 73 % for the quarter and three quarters ended June 29, 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

March 29, 2026

June 28, 2026

Total net revenues $ 7,395.1 $ 1,322.6 $ 587.9 $ 17.1 $ 9,322.7

10 unchanged sentences

Operating income/(loss) $ 1,008.9 $ 252.8 $ 306.2 $ ( 587.5 ) $ 980.4

Net gain resulting from divestiture of certain operations 536.3

Interest income and other, net 37.2

4 unchanged sentences

Corporate and Other

March 30, 2025

June 29, 2025

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

13 unchanged sentences

Earnings before income taxes $ 818.9

Two Quarters Ended

Table of Conten t s

Three Quarters Ended

North America International Channel

Corporate and Other

March 29, 2026

June 28, 2026

Total net revenues $ 21,569.4 $ 5,438.6 $ 1,678.4 $ 82.9 $ 28,769.3

10 unchanged sentences

Operating income/(loss) $ 2,555.8 $ 934.2 $ 751.9 $ ( 1,542.6 ) $ 2,699.3

Net gain resulting from divestiture of certain operations 536.3

Interest income and other, net 87.3

1 unchanged sentence

Earnings before income taxes $ 2,912.3

Two Quarters Ended

Three Quarters Ended

North America International Channel

Corporate and Other

March 30, 2025

June 29, 2025

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

13 unchanged sentences

Earnings before income taxes $ 2,343.4

Restructuring

Restructuring and Impairments

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.

As part of the Company’s “Back to Starbucks” strategy, the following restructuring plans were approved.

Fiscal 2025 Restructuring Plans

In the fourth quarter of fiscal 2025 , we announced an additional fiscal 2025 restructuring plan involving the closure of coffeehouses and the further transformation of our support organization.

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.

Table of Conten t s

During the quarter and three quarters ended June 28, 2026, 20 and 247 stores, respectively, were closed, and approximately $ 10.0 million and $ 115.9 million, respectively, was recorded to restructuring and impairments on our consolidated statement of earnings related to our fiscal 2025 restructuring plans.

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.

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

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

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

Fiscal 2026 Restructuring Plans

During the quarter and three quarters ended June 28, 2026, we recognized pre-tax restructuring charges of $ 292.6 million and $ 299.9 million, respectively, to restructuring and impairments on our consolidated statement of earnings related to our fiscal 2026 restructuring plans.

This total consists of disposal and impairment of company-operated store assets primarily associated with the impairment of Starbucks Reserve and Roastery store locations, and employee severance, separation and other costs.

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

Quarter Ended June 28, 2026

North America International Channel

Corporate and Other

Fiscal 2025 Restructuring plans:

Disposal and impairment of store assets $ 4.9 $ ( 0.6 ) $ — $ — $ 4.3

1 unchanged sentence

Amortization of ROU lease assets and other lease exit costs ( 1.8 ) 1.9 — — 0.1

( 2.5 ) 5.5 — — 3.0

Total costs 6.4 2.3 ( 0.2 ) 1.5 10.0

Fiscal 2026 Restructuring plans:

Disposal and impairment of store and non-retail facility assets 154.7 14.3 — 48.4 217.4

Employee severance, separation and other costs 10.7 24.5 — 37.4 72.6

Amortization of ROU lease assets and other lease exit costs 2.5 — — 0.1 2.6

Total costs 167.9 38.8 — 85.9 292.6

Total Restructuring and impairment costs $ 174.3 $ 41.1 $ ( 0.2 ) $ 87.4 $ 302.6

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

Two Quarters Ended March 29, 2026

Table of Conten t s

Three Quarters Ended June 28, 2026

North America International Channel

Corporate and Other

Fiscal 2025 Restructuring plans:

Disposal and impairment of store assets $ 43.9 $ ( 0.5 ) $ — $ — $ 43.4

1 unchanged sentence

Amortization of ROU lease assets and other lease exit costs 2.9 49.1 — — 52.0

4.7 47.2 — — 51.9

Total costs 51.7 54.6 — 9.6 115.9

Fiscal 2026 Restructuring plans:

Disposal and impairment of store and non-retail facility assets 154.7 14.3 — 48.4 217.4

Employee severance, separation and other costs 10.7 24.5 — 44.7 79.9

Amortization of ROU lease assets and other lease exit costs 2.5 — — 0.1 2.6

Total costs 167.9 38.8 — 93.2 299.9

Total Restructuring and impairment costs $ 219.6 $ 93.4 $ — $ 102.8 $ 415.8

$ 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 ):

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

Employee severance, separation and other costs

Lease exit and other related costs (1)

Fiscal 2025 Restructuring plans:

Beginning balance at September 28, 2025

7 unchanged sentences

( 14.2 ) ( 11.0 ) ( 25.2 )

Ending balance at March 29, 2026

Ending balance at June 28, 2026

17.5 144.5 162.0

(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 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.

Fiscal 2026 Restructuring plans:

Beginning balance at September 28, 2025

Restructuring costs incurred 79.9 2.6 82.5

Cash payments ( 13.6 ) ( 0.4 ) ( 14.0 )

Ending balance at June 28, 2026

66.3 6.5 72.8

Total ending balance at June 28, 2026

$ 83.8 $ 151.0 $ 234.8

(1) The operating lease liability balances for total stores under the fiscal 2025 and fiscal 2026 restructuring plans were $ 183.1 million and $ 6.9 million, respectively, as of June 28, 2026.

(2) The decrease was a result of divesting Starbucks retail operations in China during the third quarter of fiscal 2026 .

(3) “Other” primarily consists of updates to accrual estimates and adjustments for non-cash charges.

As of June 28, 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.

Table of Conten t s

We anticipate completion of both the fiscal 2025 and fiscal 2026 restructuring plans and remaining store closures by the first half of fiscal 2027.

The Company estimates that it will incur approximatel y $ 120 million and $ 110 million relating to the fiscal 2025 and fiscal 2026 restructuring plans, respectively, during the remainder of fiscal 2026 and first half of fiscal 2027, primarily related to accelerated ROU lease asset amortization in our North America operating segment, impairment charges, and partner severance costs in our International operating segment.

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

Table of Conten t s

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