10-K 0000829224-25-000114 (2025-11-14) vs 10-K 0000829224-24-000057 (2024-11-20)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 8,015 |
74.2% |
| MD&A | Item 7 | 8,060 |
22.6% |
| Legal Proceedings | Item 3, via Note 16 – Commitments and Contingencies | 108 |
not compared |
| Accounting Policies | Item 8, Note 1 – Summary of Significant Accounting Policies and Estimates | 7,539 |
10.0% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Risk Factors 338 words changed in this paragraph; it is 33% similar to last year's version.
We have been, are, and in the future may continue to be, subject to litigation and other legal proceedings that may could adversely affect our business. These legal proceedings may involve claims brought by store partners, from employees, customers, government agencies, regulators, suppliers, shareholders, or others through private actions, administrative proceedings, regulatory actions, or other litigation, others, including litigation on a class or collective basis on behalf of what can be a large group of potential claimants. These legal proceedings actions. Allegations have involved, and in the future may involve, allegations of illegal, unfair, or inconsistent included claims related to employment practices, including those governing wage food safety and hour, employment of minors, product defects, data privacy, discrimination, harassment, wrongful termination, and vacation and family leave laws; food-safety issues including food-borne illness, food contamination, and adverse health effects from consumption of our food products; data security or privacy breaches; customer discrimination; personal injury in our stores; marketing and advertising claims, including claims that our environmental and social program claims are misleading or inaccurate; infringement of patent, copyright, or other injury, advertising, intellectual property rights; violation disputes, securities violations, and other matters. A judgment significantly in excess of the federal securities laws; workers’ compensation; any applicable insurance coverage or other concerns. We are party to a number of pending lawsuits and governmental audits alleging violations of federal and state employment laws, including wage and hour claims, and we third-party indemnity could be involved in similar or even more significant litigation and legal proceedings in the future. Even if the allegations against us in current or future legal matters are unfounded or we ultimately are held not liable, the costs to defend ourselves may be significant, and the litigation may subject us to substantial settlements, fines, penalties, or judgments against us and may divert management’s attention away from operating our business, all of which could negatively impact materially adversely affect our financial condition and or results of operations. Even unfounded claims can result in substantial legal costs, management distraction, and potential settlements or penalties. Litigation may also may generate negative publicity, regardless of whether the allegations are valid or we ultimately are not liable, which could damage harming our reputation reputation, customer relationships, and adversely impact our sales as well as our relationships with our store partners and customers. financial performance. See Note 16, Commitments and Contingencies, to the consolidated financial statements included in Item 8 of Part II of this 10-K for information regarding certain legal proceedings in which we are involved.
Source: Item 1A, 10-K 0000829224-25-000114 vs Item 1A, 10-K 0000829224-24-000057
MD&A 135 words changed in this paragraph; it is 42% similar to last year's version.
International North America total net revenues for fiscal 2024 decreased $149 2025 increased $364 million, or 2%, 1%, primarily due driven by net new company-operated store growth of 4%, or 441 stores over the past 12 months ($980 million), prior to unfavorable foreign currency translation impacts ($252 million), as well as the 584 restructuring closures late in the fourth quarter of fiscal 2025. This growth was partially offset by a 4% 2% decline in comparable store sales ($210 million), ($419 million) driven by a 4% decline in comparable transactions, partially offset by a 2% increase in average ticket. ticket, primarily due to annualization of prior year pricing. Also contributing to the decline in international total net revenues were lower product and equipment sales to, and royalty revenues from, our licensees ($69 million), largely driven by continued disruptions due to multiple international conflicts, partially offset by ($143 million) and the performance impact of 654 net new licensed store openings over the past 12 months. These decreases were partially offset by net new company-operated store growth of 10%, or 893 stores, over the past 12 months ($378 unfavorable foreign currency translation ($42 million).
Source: Item 7, 10-K 0000829224-25-000114 vs Item 7, 10-K 0000829224-24-000057
Accounting Policies 134 words changed in this paragraph; it is 76% similar to last year's version.
We maintain several equity incentive plans under which we may grant non-qualified stock options, incentive stock options, restricted stock, restricted stock units (“RSUs”), or stock appreciation rights to employees, non-employee directors, and consultants; stock options have not been broadly used as part of our compensation strategy in recent years. We also have an employee stock purchase plan (“ESPP”). RSUs issued by us are equivalent to nonvested shares under the applicable accounting guidance. We record stock-based compensation expense based on the fair value of stock awards at the grant date and recognize the expense over the related service period following a graded vesting expense schedule. Expense for performance-based RSUs is recognized when it is probable the performance goal will be achieved. Performance goals are determined by the Board and may include measures such as earnings per share, comparable store sales, operating income, return on invested capital, total shareholder return, and metrics focused on talent and sustainability. achievement of key components of the “Back to Starbucks” plan. The fair value of RSUs is based on the closing price of Starbucks common stock on the award date, less the present value of the dividends expected to be paid on the underlying shares during the vesting period. The fair value of each stock option granted is estimated on the grant date using the Black-Scholes-Merton option valuation model. The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and our historical experience. If applicable, our total shareholder return relative to our peer group is incorporated into the underlying assumptions using a Monte Carlo simulation valuation model to calculate grant date fair value. The related assumptions used in the Monte Carlo simulation valuation model include expected term, volatility, dividend yield, and risk-free interest rate. Compensation expense is recognized over the requisite service period for each separately vesting portion of the award, and only for those awards expected to vest, with forfeitures estimated at the date of grant based on our historical experience and future expectations.
Source: Item 8, Note 1 – Summary of Significant Accounting Policies and Estimates, 10-K 0000829224-25-000114 vs Item 8, Note 1 – Summary of Significant Accounting Policies and Estimates, 10-K 0000829224-24-000057
Every change, by type
Sentences and paragraphs of SBUX's Risk Factors and MD&A, 10-K 2025-11-14 against 10-K 2024-11-20.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
Various factors, events, or conditions may result in a diminution or erosion of trust in our brand value. Adverse developments pertaining to the matters discussed elsewhere in this risk factors section may negatively impact the value of our brands. Such developments may include difficulties executing strategic initiatives, adapting to shifting consumer preferences, or managing global operations, and challenges stemming from macroeconomic volatility, supply chain pressures and disruptions, or an evolving competitive, regulatory, social, and geopolitical landscape. The impact of such developments on the value of our brands may be exacerbated if they receive considerable publicity or if they result in litigation. The value of our brands may be affected by actual or perceived developments, whether isolated or recurring, whether the result of actions by us or our business partners or the result of external developments, and whether such developments are in our control. Negative commentary about Starbucks, even if inaccurate or malicious, has in the past, and could in the future, damage the value of our brand, and adverse impacts may be compounded by social media, video-sharing, and messaging platforms that could dramatically increase the speed with which negative publicity may be disseminated, often before we have a meaningful opportunity to investigate, respond to, and address an issue. In addition, we cannot ensure that our store partners, licensees, or other business partners will not act or refrain from acting in a manner that adversely affects the value and relevance of our brand. Because brand value is based in part on consumer perceptions on a variety of subjective qualities, it may be difficult to address developments negatively impacting the value of our brands in a timely and effective manner to mitigate harm.
Read it in 10-K 2025-11-14 at sec.gov ↗
AddedRisk Factors
The diminution of, or erosion of trust in, our brand value may have negative consequences for the Company. Consumer demand for our products and our brand value could diminish significantly if we or our employees, licensees, or other business partners fail to preserve the quality of our products, or act, or are perceived to act, in an unethical, illegal, or otherwise inappropriate manner. To the extent third parties object to actions or positions taken or perceived to have been taken by us, it may generate negative sentiment around our business. Developments affecting the value of our brands have in the past, and may in the future, trigger boycotts of our stores, products, and brand. Each of these consequences, individually and collectively, could have potentially material impacts on our brand value, business performance, and financial results.
Read it in 10-K 2025-11-14 at sec.gov ↗
AddedRisk Factors
Our continued success depends on our ability to adapt brand, marketing, promotional, advertising, and pricing strategies to shifting economic conditions, competitive pressures, and evolving customer preferences. We operate in a complex and costly
Read it in 10-K 2025-11-14 at sec.gov ↗
AddedRisk Factors
marketing environment. Decisions to collaborate or refrain from collaborating with certain parties may impact our brand image and, consequently, our financial performance. Our programs may not always reach consumers as intended, particularly given the wide range of generational, geographical, cultural, and socioeconomic characteristics and channels of communication used by our customers, and effective resource allocation across channels, including digital, is critical. Additionally, factors such as operating costs, competitor strategies, and inflation may affect our pricing decisions, which could impact demand. For example, there is no guarantee future cost increases will be absorbed by customers. If our marketing or pricing strategies underperform relative to competitors, our sales and market share could decline. Likewise, if we do not continuously strengthen our capabilities in marketing, data analytics (including artificial intelligence and machine learning) and innovation to understand and maintain or grow consumer interest, brand loyalty, and market share while strategically expanding into other profitable categories of the commercial beverage industry, our business could be negatively affected.
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AddedRisk Factors
We undertake these initiatives in the context of ongoing efforts to adapt to shifting consumer behaviors amid economic volatility, optimize our mix of licensed and company-operated stores, expand relevant product offerings across dayparts, and drive growth in cold beverages and Channel Development partnerships, while also advancing appropriate sustainability efforts, managing climate-related risks, and reducing operating costs. Risks to successful and timely implementation of these initiatives include delays or cancellations of store openings due to labor or material shortages, permit procurement issues, or lack of suitable real estate; supply chain scalability and sustainability challenges; underperformance or delays in product innovation; remodel disruptions or cost overruns; coordination and execution challenges; failure to realize cost savings; increased taxation; regulatory constraints, including public health mandates; credit rating deterioration; and geopolitical instability. If these initiatives fail to deliver expected results or we do not fully realize their intended benefits, our financial performance may suffer. Additionally, prioritizing these efforts over other organizational needs or misallocating resources could materially impact our business and operating results.
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AddedRisk Factors
Managing growth—particularly in international markets—requires balancing local autonomy with consistency in our goals, policies, and standards. Ineffectively balancing these imperatives could materially harm our business results and financial performance.
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AddedRisk Factors
Furthermore, we may be unsuccessful in implementing strategic initiatives through large acquisitions, integrations, divestitures, partnerships, joint ventures, or other strategic transactions. If we are unable to complete such transactions or successfully integrate and develop acquired businesses, including the effective management of integration activities, we could fail to achieve the expected increases in revenues and operating results or the anticipated synergies and cost savings. In the past we have been, and in the future we may be, unable to realize the expected benefits of strategic transactions, or it may also take longer than expected to realize the expected benefits. This has in the past required, and may in the future require, us to assess potential impairment of assets, including goodwill and intangibles. Any resulting impairment charges could materially affect our financial results.
Read it in 10-K 2025-11-14 at sec.gov ↗
AddedRisk Factors
Our success depends on attracting and retaining customers. Financial performance may be adversely affected by reduced discretionary spending, lack of acceptance of new products, brands, or platforms, or declining demand for existing offerings. We have previously been, and may in the future be, unable to accurately predict consumer demand for our products. This has
Read it in 10-K 2025-11-14 at sec.gov ↗
AddedRisk Factors
resulted, and may in the future result, in insufficient or excess inventory, increased inventory markdowns, and higher costs. Any of these outcomes could adversely affect our results of operations and financial condition.
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AddedRisk Factors
Additionally, health concerns related to ingredients such as caffeine, dairy, sugar, or allergens—whether accurate or not—along with increased litigation, regulation and regulatory scrutiny, or taxes on certain food components, ingredients, or additives, could reduce demand and harm our results. Shifts in consumer behavior, including dietary changes or use of weight-loss drugs, may also impact sales.
Read it in 10-K 2025-11-14 at sec.gov ↗
AddedRisk Factors
We may experience food or beverage-safety incidents such as contamination, mislabeling, or adulteration during any stage of production or preparation. We rely on third-party suppliers for many of our ingredients and finished products. A failure to meet quality standards—even if due to factors beyond our control—could result in public exposure, regulatory scrutiny or action, litigation (including product liability claims and class actions), or temporary store closures, which could materially harm our business. Additionally, clean water is essential for beverage preparation, and access may be limited in certain international markets. As we expand our offerings requiring temperature control, the risk of food-safety incidents increases if proper conditions are not maintained due to mechanical failure or human error. Such incidents may harm our brand and reputation and could negatively impact our business and financial performance.
Read it in 10-K 2025-11-14 at sec.gov ↗
AddedRisk Factors
Reports—whether accurate or not—of food- or beverage-safety issues such as contamination, mislabeling, or adulteration during any stage of production or preparation have historically harmed the reputations of companies in our industry. Any perceived association with such incidents, even if unfounded, could harm our reputation and materially impact our business and financial performance. Food-safety incidents involving competitors or shared suppliers, even if unrelated to Starbucks, could generate negative publicity and impact our sales regionally or globally. In addition, real or perceived concerns about food safety issues, such as phthalates, per- and polyfluoroalkyl substances (PFAS), microplastics or heavy metals in the U.S. food supply chain, could impact consumers’ confidence in our offerings. Confirmed food-safety issues may also result in product recalls. A widespread product recall could lead to significant financial losses from recall costs, inventory destruction, lost sales, and reputational damage. Declines in customer traffic due to safety concerns, negative publicity, or store closures could adversely affect our operations.
Read it in 10-K 2025-11-14 at sec.gov ↗
RemovedRisk Factors
Our business is subject to various risks and uncertainties that you should consider before investing in the Company. These risks are described in more detail in this Item 1A. These risks include, but are not limited to, the following:
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedRisk Factors
•Our investments to transform and enhance the customer experience, including through technology, may not generate the expected results.
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedRisk Factors
•Economic conditions in the U.S. and international markets have adversely affected, and could continue to adversely affect, our business and financial results.
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedRisk Factors
Erosion of trust in our brand value can be caused by isolated or recurring incidents originating both from us or our business partners, or from external events. Such incidents can potentially trigger boycotts of our stores or result in civil or criminal liability, which can have a negative impact on our financial results. Incidents that can erode trust in our brand value include actual or perceived breaches of privacy or violations of domestic or international privacy laws, contaminated food, product recalls, store employees or other food handlers infected with communicable diseases, safety-related incidents, or other potential incidents discussed in this risk factors section. The impact of such incidents may be exacerbated if they receive considerable publicity, including rapidly through social or digital media (including for malicious reasons), or if they result in litigation. Negative postings or comments on social media or networking websites about Starbucks, even if inaccurate or malicious, have in the past, and could in the future, generate negative publicity about Starbucks across media channels that could damage the value of our brand. It may be difficult to address such negative publicity, including as a result of fictitious media content (such as content produced by generative artificial intelligence or bad actors) across media channels. Additionally, consumer demand for our products and our brand value could diminish significantly if we, our employees, licensees, or other business partners fail to preserve the quality of our products, act or are perceived to act in an unethical, illegal, racially-biased, unequal, inequitable, or socially irresponsible manner, including with respect to the sourcing, content, or sale of our products, service and treatment of customers at Starbucks stores, treatment of employees, including our responses to unionization efforts, or the use of customer data for general or direct marketing or other purposes. Allegations, even if untrue, that we are not respecting internationally recognized human rights, are failing to comply with applicable workplace and labor laws, or are aligned with positions on social or geopolitical issues could also negatively impact our brand value. Additionally, if we fail to comply with laws and regulations, take controversial positions or actions, fail to deliver a consistently positive consumer experience in each of our markets, including by failing to invest in the right balance of wages and benefits to attract and retain employees who represent the brand well, or fail to foster an inclusive and diverse environment, our brand value may be diminished. In addition, we cannot ensure that our store partners, licensees, or other business partners will not take actions that adversely affect the value and relevance of our brand.
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedRisk Factors
Furthermore, if we are not effective in making sufficient progress toward our environmental and social program goals, consumer trust in our brand may suffer, and this perception could result in negative publicity or litigation. The ongoing relevance of our brand may depend on making sufficient progress toward our environmental and social program goals, each of which requires company-wide coordination and alignment. Increased public focus, including by governmental and nongovernmental organizations, on environmental sustainability matters, including climate change, diminishing energy and water resources, packaging and waste, deforestation, biodiversity loss, greenhouse gas emissions, and land use, may result in increased pressure to set goals and take actions to meet them, which could expose us to market, operational, and execution costs or risks. Statements regarding our environmental and social program goals reflect our current plans and aspirations; our environmental and social program-related policies, practices, and goals are voluntary, challenging, and subject to change at our discretion. Some third parties may object to the scope or nature of our environmental and social program initiatives or goals, or any revisions to these initiatives or goals, which could give rise to negative responses by governmental actors (such as retaliatory legislative treatment), consumers (such as boycotts or negative publicity campaigns), or other third parties that could adversely affect our brand value.
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedRisk Factors
Our continued success depends in part on our ability to adjust our marketing strategies, promotional and advertising plans, and pricing strategies to respond quickly and effectively to shifting economic and competitive conditions as well as evolving customer preferences. We operate in a complex and costly marketing, promotional, and advertising environment. Competition to attract and retain high-quality marketing partners and endorsers has increased. Our decisions to collaborate or to cease collaborating with certain endorsers or marketing partners in light of actions taken or statements made by them could seriously harm our brand image with consumers and, as a result, could have an adverse effect on our sales and financial condition. Our marketing, promotional, and advertising programs may not be successful in reaching consumers in the way we intend. Our success depends in part on whether the allocation of our advertising, promotional, and marketing resources across different channels, including digital, allows us to effectively and efficiently reach consumers in ways that are meaningful to them. Additionally, many factors, including operating costs, constraints, or changes, and our current and future competitors’ pricing
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedRisk Factors
and marketing strategies, could significantly affect our pricing strategies (including price reductions, promotions, discounts, coupons, or free goods), which may prevent us from competing effectively in certain geographies. For example, historically, in order to partially offset inflation and other increases in the costs of core operating resources, we have gradually increased menu prices. There can be no assurance that future cost increases, including as a result of inflation, can be offset by increased menu prices or that our current or future menu prices will be fully absorbed by our customers without any resulting change to their demand for our products. If the advertising, promotional, and marketing programs or our pricing strategies are not successful or are not as successful as those of our competitors, our sales and market share could decrease.
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedRisk Factors
Finally, consumers are focusing more on sustainability and the environmental impacts of Starbucks operations, as well as the alignment of Starbucks actions with its stated mission, values, and promises. An inability to meet consumer expectations with respect to these issues could adversely affect our financial results.
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedRisk Factors
•being an employer of choice and investing in partners to deliver a superior customer experience;
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedRisk Factors
•driving convenience, brand engagement, and digital relationships through our mobile, loyalty, delivery, and digital capabilities both domestically and internationally;
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedRisk Factors
•simplifying store administrative tasks to allow store partners to better engage with customers;
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedRisk Factors
•increasing the scale of the Starbucks store footprint with disciplined global expansion and continuing to introduce flexible and unique store formats in certain markets;
Read it in 10-K 2024-11-20 at sec.gov ↗
RewordedRisk Factors
Our policies and procedures are designed to comply ensure compliance with all applicable laws, accounting regulations, and reporting requirements, tax rules, and other regulations and requirements, including those imposed by the SEC, Nasdaq, and foreign countries, as well as applicable trade, labor, healthcare, food and beverage, sanitation, safety, environmental, labeling, anti-bribery and corruption, and merchandise laws. jurisdictions.
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedRisk Factors
Additionally, inconsistent use or inadequate protection of our brand and other intellectual property assets, as well as the failure to protect our intellectual property, could erode consumer trust and diminish our brand value, which could result in a material negative impact on materially affect our financial results.
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RewordedRisk Factors
We also source our food, beverage, and other products from a wide variety broad network of domestic and international business partners, and in certain some cases, such licensees source products are produced or sourced by our licensees directly. independently.
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedRisk Factors
Planned However, planned initiatives may not have appeal across multiple markets resonate uniformly with our customers and could drive unanticipated changes lead to unexpected shifts in customer perceptions and perception or market share.
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedRisk Factors
Our Channel Development business is heavily reliant on Nestlé, which has the holds global right rights to sell and distribute our certain Starbucks branded packaged goods and foodservice products to retailers and operators, with few exceptions. goods.
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedRisk Factors
Failures by our licensees or business providers partners to comply with the applicable laws or regulations of their markets, or to otherwise meet the brand standards consumers associate with our brand, may negatively impact our business.
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedRisk Factors
We do not monitor the quality of non-Starbucks products served by authorized foodservice operators who are authorized to use our logos and provide branded products as part of their foodservice businesses. operators.
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedRisk Factors
Our ability to attract and retain corporate, retail, and other personnel is also acutely impacted in certain international and domestic markets where the competition for a relatively small number of qualified employees is intense or in markets where large high-tech companies are able to offer more competitive salaries and benefits.
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedRisk Factors
To be successful in the future, particularly outside of the U.S. where the Starbucks brand and our other brands are less well-known, we believe we must preserve, grow, and leverage the value of our brands across all sales channels.
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedRisk Factors
These strategic initiatives, which include In conjunction with our broader Back to Starbucks plan, these strategic initiatives are designed to create growth, improve our results of operations, and drive long-term shareholder value, and include: value.
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedRisk Factors
Privacy and data protection laws, such as those referenced above, may impact Starbucks operations and new also affect emerging business models, such as Starbucks Digital Solutions, which rely on Starbucks functioning acting as a data controller of customer personal information in licensed markets.
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedRisk Factors
We rely on protect these assets through a combination of trademarks, copyrights, service marks, trade secrets, patents, and other intellectual property rights to protect our brand and branded products. rights.
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Quiet changesRisk Factors
Our Any guidance we provide is based on certain assumptions, which may or may not prove to be correct.
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AddedMD&A
In support of our “Back to Starbucks” strategy, we completed our assessment of our coffeehouse portfolio late in the fourth quarter and made decisions to close stores that did not demonstrate a viable path to profitability, or meet our standards of delivering a warm, welcoming space for our customers and partners. Our store closures in North America were substantially
Read it in 10-K 2025-11-14 at sec.gov ↗
AddedMD&A
completed in fiscal 2025 and the International store closures are expected to be completed in the first half of fiscal 2026. As a result of these closures, we expect a fiscal 2026 reduction in our baseline North America company-operated revenues, partially offset by sales transfer to nearby coffeehouses that remain open. We also expect the future impact to operating margins to be slightly accretive. With a healthier base of coffeehouses, we see meaningful opportunity for disciplined growth. We anticipate that these actions, along with simplifying our broader support organization, will allow us to restructure, redeploy, and refocus our resources on priorities that we believe will deliver long-term sustainable business growth.
Read it in 10-K 2025-11-14 at sec.gov ↗
AddedMD&A
We expect that the macroeconomic challenges we have been experiencing, including impacts from new tariffs and dynamic coffee prices, will continue; however, we are encouraged by the results we have seen from our “Back to Starbucks” initiatives. Following our Green Apron Service model going live across our full U.S company-operated store portfolio in the fourth quarter of fiscal 2025, we are focused on empowering coffeehouse leaders to take ownership of sustaining the model as our permanent way of working, which we expect to enhance the customer experience and drive future transaction growth. Further, as announced in early November 2025, we look forward to working with our new strategic joint venture partner, Boyu Capital, to accelerate long-term growth in China. We believe, through strategic prioritization, that we are taking the right actions now and in the future, specifically through our investments in store partners, uplifting the coffeehouse experience through disciplined capital deployment, introducing new food and beverage platforms, reimagining the Starbucks rewards program, and enhancing support for our licensee partners. These actions, while driving more efficiency, accountability, and agility as a company, will lay the foundation for the future of Starbucks.
Read it in 10-K 2025-11-14 at sec.gov ↗
AddedMD&A
General and administrative expenses increased $94 million, primarily due to the Leadership Experience 2025 ($81 million).
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AddedMD&A
Income from equity investees decreased $53.4 million, primarily due to lower income from our North American Coffee Partnership joint venture.
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AddedMD&A
Interest expense decreased $19 million, primarily due to savings from cross-currency interest rate hedging, partially offset by higher interest rates on refinanced long-term debt.
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AddedMD&A
During the third quarter of fiscal 2025, we replaced our $3.0 billion unsecured five-year revolving credit facility (the “2021 credit facility”) with a new $3.0 billion unsecured five-year revolving credit facility (the “2025 credit facility”).
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AddedMD&A
2025 credit facility, interest on the outstanding amount of the indebtedness under the 2025 credit facility will bear interest at a rate per annum equal to 2% in excess of the interest then borne by such borrowings.
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AddedMD&A
On July 4, 2025, the President of the United States signed and enacted tax legislation into law through a reconciliation bill titled “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14,” commonly referred to as the “One Big Beautiful Bill Act.” This legislation was enacted during the fourth quarter of fiscal 2025; therefore, the fiscal 2025 accounting impacts from this tax law change are included in our fourth quarter of fiscal 2025 results. This tax law change did not result in a material impact to our consolidated financial statements. See Note 14, Income Taxes, to the consolidated financial statements included in Item 8 of Part II of this 10-K, for further discussion.
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AddedMD&A
Cash provided by operating activities was $4.7 billion for fiscal 2025, compared to $6.1 billion for fiscal 2024. The change was primarily due to the decrease in net earnings of $1.9 billion and a net increase of $451.2 million in inventories, which was primarily driven by green and roasted coffee, largely due to elevated coffee prices. These impacts were partially offset by a net increase of $713.2 million in loss on disposal, impairment, and accelerated amortization of assets primarily driven by restructuring costs as part of the “Back to Starbucks” strategy and a net increase in accounts payable, primarily due to payment timing.
Read it in 10-K 2025-11-14 at sec.gov ↗
AddedMD&A
In the fourth quarter of fiscal 2025, as part of the “Back to Starbucks” strategy, the Company assessed its 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.
Read it in 10-K 2025-11-14 at sec.gov ↗
AddedMD&A
As a result, we recorded $892 million in restructuring and impairments in our consolidated statements of earnings during the fiscal year ended September 28, 2025. This total included $352.8 million related to impairment and disposition of company-operated store assets and $239.3 million primarily associated with accelerated amortization of ROU lease assets and other lease exit costs due to store closures prior to the end of contractual lease terms. Refer to Note 18, Restructuring, included in Item 8 of Part II of this 10-K, for further discussion.
Read it in 10-K 2025-11-14 at sec.gov ↗
RemovedMD&A
Our performance was lower-than-expected as a result of a pronounced customer traffic decline, reflecting our targeted and accelerated investments not improving customer behaviors as intended, as well as the macroeconomic and competitive environment in China that further pressured our results. Given these challenges, under the direction of our new chief executive officer, Brian Niccol, we are changing our business strategy to bring customers back to our stores and return to growth. Our “Back to Starbucks” strategy includes supporting our green apron partners, enhancing the customer experience, reestablishing ourselves as the community coffee house, and innovating the coffee tasting experience through product development, marketing, and in-store experience. This strategic reset will provide us with the opportunity to assess the business and refocus
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedMD&A
our efforts, including capital allocation priorities, efficiency efforts, and store growth initiatives. We remain confident in the strength of our brand and believe that the new action plans will position the Company for sustainable long-term growth.
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedMD&A
General and administrative expenses increased $82 million, primarily due to incremental investments in technology ($93 million), investments in partner wages and benefits ($90 million), and certain proxy solicitation and advisory services costs incurred in the second quarter of fiscal 2024 ($28 million). These increases were partially offset by lower performance-based compensation ($86 million) and the lapping of donations to The Starbucks Foundation made in fiscal 2023 ($30 million).
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedMD&A
Gain from sale of assets includes the sale of our Seattle’s Best Coffee brand to Nestlé in the second quarter of fiscal 2023.
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedMD&A
Corporate and Other operating loss increased to $1.9 billion for fiscal 2024, or 5%, compared to $1.8 billion in fiscal 2023. This increase was primarily driven by incremental investments in technology ($93 million), investments in partner wages and benefits ($57 million), and certain proxy solicitation and advisory services costs incurred in the second quarter of fiscal 2024 ($28 million). These increases were partially offset by lower performance-based compensation ($61 million) and the lapping of donations to The Starbucks Foundation made in fiscal 2023 ($30 million).
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedMD&A
Cash provided by operating activities was $6.1 billion for fiscal 2024, compared to $6.0 billion for fiscal 2023. The change was primarily due to an increase in net cash provided by changes in other operating assets and liabilities, primarily driven by net hedging activity, largely related to our coffee hedging program. See Note 3, Derivative Financial Instruments, to the consolidated financial statements included in Item 8 of Part II of this 10-K for further discussion. Also contributing were the change in operating lease liability driven by the timing of cash payment for rent, an increase in depreciation and amortization driven by capital additions, and higher distributions received from our North America Coffee Partnership. These increases were partially offset by lower net earnings during the period and higher inventory purchase costs, primarily driven by increased coffee commodity prices.
Read it in 10-K 2024-11-20 at sec.gov ↗
RemovedMD&A
In fiscal 2022, we announced our Reinvention Plan in the U.S. market to increase efficiency while elevating the partner and customer experience. As a result of the restructuring efforts in connection with the Reinvention Plan, we recorded immaterial impairment charges in our consolidated statements of earnings during the fiscal years ended October 1, 2023, and October 2, 2022. No restructuring and impairment costs attributable to the Reinvention Plan were recorded in our consolidated statements of earnings during the fiscal year ended September 29, 2024.
Read it in 10-K 2024-11-20 at sec.gov ↗
RewordedMD&A
Channel DevelopmentFiscal Year Ended Sep 29, Oct 1, 28, Sep 29, Oct 1, Sep 28, Sep 29, 2025 2024 2023 2025 2024 2023 As a % of Channel Development Total Net Revenues Net revenues $ 1,871.7 $ 1,769.8 $ 1,893.8 Product and distribution costs 1,168.3 1,075.4 1,250.1 62.4% 60.8% 66.0% Other operating expenses 60.2 58.4 54.6 3.2 3.3 2.9 Depreciation and amortization expenses — 0.1 0.0 0.0 General and administrative expenses 5.8 7.7 8.4 0.3 0.4 0.4 Restructuring and impairments 1.9 — 0.1 — Total operating expenses 1,236.2 1,141.5 1,313.2 66.0 64.5 69.3 Income from equity investees 249.6 297.6 295.7 13.3 16.8 15.6 Gain from sale of assets — 91.3 — 4.8 Operating income $ 885.1 $ 925.9 $ 967.6 47.3% 52.3% 51.1%
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedMD&A
Operating ExpensesFiscal Year Ended Sep 29, Oct 1, 28, Sep 29, Oct 1, Sep 28, Sep 29, 2025 2024 2023 2025 2024 2023 As a % of Total Net Revenues Product and distribution costs $ 11,658.2 $ 11,180.6 $ 11,409.1 31.4% 30.9% 31.7% Store operating expenses 17,058.9 15,286.5 14,720.3 45.9 42.3 40.9 Other operating expenses 584.6 565.6 539.4 1.6 1.5 1.6 Depreciation and amortization expenses 1,684.7 1,512.6 1,362.6 4.5 4.2 3.8 General and administrative expenses 2,617.2 2,523.3 2,441.3 7.0 6.8 7.0 Restructuring and impairments 892.0 — 21.8 2.4 — 0.1 Total operating expenses 34,495.6 31,068.6 30,494.5 92.8 85.9 84.8 Income from equity investees 247.8 301.2 298.4 0.7 0.8 0.8 Gain from sale of assets — 91.3 — 0.3 Operating income $ 2,936.6 $ 5,408.8 $ 5,870.8 7.9% 15.0% 16.3% Store operating expenses as a % of related revenues 55.5% 51.4% 50.0%
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedMD&A
Consolidated net revenues increased 1% 3% to $37.2 billion in fiscal 2025 compared to $36.2 billion in fiscal 2024 compared to $36.0 billion in fiscal 2023, 2024, primarily driven by incremental revenues from net new company-operated stores over the past 12 months, an increase in revenue in the Global Coffee Alliance, and incremental revenue from the acquisition of 23.5 Degrees Topco Limited, a U.K. licensed business partner, partially offset by a decrease in comparable store sales and the impact of unfavorable foreign currency translation. a decline in our licensed store business.
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedMD&A
Other Income and ExpensesFiscal Year Ended Sep 29, Oct 1, 28, Sep 29, Oct 1, Sep 28, Sep 29, 2025 2024 2023 2025 2024 2023 As a % of Total Net Revenues Operating income $ 2,936.6 $ 5,408.8 $ 5,870.8 7.9% 15.0% 16.3% Interest income and other, net 113.3 122.8 81.2 0.3 0.2 0.3 Interest expense (542.6) (562.0) (550.1) (1.5) (1.6) (1.5) Earnings before income taxes 2,507.3 4,969.6 5,401.9 6.7 13.7 15.0 Income tax expense 650.6 1,207.3 1,277.2 1.7 3.3 3.6 Net earnings including noncontrolling interests 1,856.7 3,762.3 4,124.7 5.0 10.4 11.5 Net earnings/(loss) attributable to noncontrolling interests 0.3 1.4 0.2 0.0 0.0 Net earnings attributable to Starbucks $ 1,856.4 $ 3,760.9 $ 4,124.5 5.0% 10.4% 11.5% Effective tax rate including noncontrolling interests 25.9% 24.3% 23.6%
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedMD&A
Operating margin contraction of 130 710 basis points was primarily due to investments in store partner wages restructuring costs associated with the closure of coffeehouses and benefits simplification of our support organization (approximately 140 240 basis points), deleverage (approximately 210 basis points), investments in support of “Back to Starbucks,” which were largely in labor hours (approximately 130 basis points), and increased promotional activity inflation (approximately 100 80 basis points).
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedMD&A
Licensed stores revenue decreased $8 $155 million, primarily driven by lower product and equipment sales to, and royalty revenues from, our licensees in our International North America segment ($69 million) ($143 million), the impact of the acquisition of 23.5 Degrees Topco Limited ($36 million), and by unfavorable foreign currency translation impacts ($27 million), partially offset by higher product and equipment sales to, and royalty revenues from, our licensees in our North America segment ($80 ($22 million).
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedMD&A
North America total net revenues for fiscal 2024 2025 increased $440 $364 million, or 2%, 1%, primarily driven by net new company-operated store growth of 5%, 4%, or 533 stores, 441 stores over the past 12 months ($788 million) and higher product and equipment sales to, and royalty revenues from, our licensees ($80 million). ($980 million), prior to the 584 restructuring closures late in the fourth quarter of fiscal 2025.
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedMD&A
For both the North America segment and U.S. market, revenue increased 2% 1% in fiscal 2024 2025 compared to fiscal 2023, 2024, primarily driven by net new company-operated store growth of 4%, or 441 stores, over the past 12 months and higher product and equipment sales to, and royalty revenues from, our licensees. months, prior to the 584 North America restructuring closures late in the fourth quarter of fiscal 2025.
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedMD&A
Channel Development total net revenues for fiscal 2024 decreased $124 2025 increased $102 million, or 7%, 6%, compared to fiscal 2023, 2024, primarily due to a decline an increase in revenue in the Global Coffee Alliance ($125 million) following the sale of our Seattle’s Best Coffee brand to Nestlé in the second quarter of fiscal 2023 as well as product SKU optimization. ($99 million).
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedMD&A
Operating margin expanded 120 contracted 500 basis points to 52.3%, 47.3%, primarily due to mix shift (approximately 350 basis points), strength driven by a decline in our North American Coffee Partnership joint venture income (approximately 120 350 basis points), points) and lapping impairment charges against certain manufacturing assets in the second quarter of fiscal 2023 higher global product costs (approximately 90 basis points).
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedMD&A
Operating margin contracted 220 210 basis points points, to 14.2%, 12.1% , primarily due to increased promotional activity (approximately 170 basis points) and investments in store partner wages restructuring and benefits impairment costs associated with the closure of coffeehouses and simplification of our support organization (approximately 120 basis points), partially offset by in-store operational efficiencies (approximately 100 110 basis points).
Read it in 10-K 2025-11-14 at sec.gov ↗
RewordedMD&A
Revenue for our Channel Development segment decreased 7% increased 6% in fiscal 2024 2025 compared with fiscal 2023, 2024, primarily driven by a decline an increase in revenue in the Global Coffee Alliance following the sale of our Seattle’s Best Coffee brand to Nestlé in the second quarter of fiscal 2023 as well as product SKU optimization. Alliance.
Read it in 10-K 2025-11-14 at sec.gov ↗
