Starbucks Reports Q4 and Full Fiscal Year 2026 Results
Q4 Consolidated Net Revenues Down 4% to $9.1 billion, Reflecting the Starbucks China Transaction
Q4 GAAP Operating Margin 10.8%, Up 790 Basis Points; Non-GAAP Operating Margin 14.0%, Up 450 Basis Points
Company Introduces Fiscal Year 2027 Guidance SEATTLE; October 29, 2026 – Starbucks Corporation (Nasdaq: SBUX) today reported financial results for its 13-week fiscal fourth quarter and 52-week fiscal year ended September 27, 2026. GAAP results in fiscal 2026 and fiscal 2025 include items that are excluded from non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information.
• Global comparable coffeehouse sales increased 7.2%, primarily driven by a 5.2% increase in average ticket and a 1.8% increase in comparable transactions
◦ North America comparable coffeehouse sales increased 7.9%, primarily driven by a 5.0% increase in average ticket and a 2.7% increase in comparable transactions; U.S. comparable coffeehouse sales increased 7.7%, primarily driven by a 5.2% increase in average ticket and a 2.4% increase in comparable transactions
◦ International comparable coffeehouse sales increased 0.9%, primarily driven by a 3.7% increase in average ticket, partially offset by a 2.8% decline in comparable transactions
• The company opened 303 net new coffeehouses in Q4, ending the period with 41,607 coffeehouses: 32% company-operated and 68% licensed
◦ At the end of Q4, coffeehouses in the U.S. comprised 40% of the company’s global portfolio, ending the period with 16,781 coffeehouses
• Consolidated net revenues decreased 4% to $9.1 billion, including on a constant currency basis, primarily driven by the conversion of Starbucks retail operations in China to a licensed joint venture model
• GAAP operating margin expanded 790 basis points year-over-year to 10.8%, primarily driven by lower restructuring costs and sales leverage
◦ Non-GAAP operating margin expanded 460 basis points year-over-year to 14.0%, or 450 basis points on a constant currency basis
• Effective tax rate of 27.1% compared to 18.8% in the prior year, with the increase primarily due to the proportionate impact of certain permanent differences and discrete items in relation to higher pre-tax earnings, and the divestiture of Starbucks retail operations in China in the third quarter of fiscal 2026
◦ Non-GAAP earnings per share of $0.80 expanded 54% over prior year, including on a constant currency basis
Global comparable coffeehouse sales increased 6.2%, primarily driven by a 3.2% increase in comparable transactions and a 3.0% increase in average ticket
◦ North America comparable coffeehouse sales increased 6.6%, primarily driven by a 3.6% increase in comparable transactions and a 3.0% increase in average ticket; U.S. comparable coffeehouse sales increased 6.5%, primarily driven by a 3.4% increase in comparable transactions and a 3.0% increase in average ticket
◦ International comparable coffeehouse sales increased 3.7%, primarily driven by a 2.0% increase in average ticket and a 1.6% increase in comparable transactions
• Consolidated net revenues increased 2% to $37.9 billion, including on a constant currency basis 2 • GAAP operating margin expanded 180 basis points year-over-year to 9.7%, primarily driven by sales leverage, partially offset by labor investments largely in support of “Back to Starbucks”
◦ Non-GAAP operating margin expanded 200 basis points year-over-year to 11.9%, including on a constant currency basis
• The divestiture of Starbucks retail operations in China in the third quarter of fiscal 2026 resulted in a pre-tax gain of $536.3 million
• Effective tax rate of 34.2% compared to 25.9% in the prior year. The increase was primarily due to the discrete impact of changes in indefinite reinvestment assertions as a result of classifying our Starbucks retail operations in China as held for sale in the first quarter of fiscal 2026, impacts resulting from the divestiture of Starbucks retail operations in China in the third quarter of fiscal 2026, and lapping the discrete impact of a tax status change for a certain foreign entity in the first quarter of fiscal 2025.
◦ Non-GAAP earnings per share of $2.72 increased 28% over prior year, or 27% on a constant currency basis
“We had a terrific quarter and a great year driven by our focus on the fundamentals and what has always set Starbucks apart: exceptional coffee, a moment of connection and a world-class customer experience. This gives me confidence our performance is durable,” commented Brian Niccol, chairman and chief executive officer. “Back to Starbucks started as our turnaround plan. Now, it's our growth plan.”
“In fiscal 2026, we returned to comp growth, expanded margin and delivered stronger earnings, and we intend to build on that progress in fiscal 2027,” commented Cathy Smith, chief financial officer. “Our recently increased dividend and plans to resume share repurchases in fiscal 2027 underscore our confidence and disciplined focus on driving sustainable long-term value.”
Quarter Ended ($ in millions) Sep 27, 2026 Sep 28, 2025 Change (%) ────────────────────────────────────────────────────────────────────────────── Change in Comparable Coffeehouse 7.9% 0.0% Sales(1) Change in Transactions 2.7% (0.6)% Change in Ticket 5.0% 0.6% Coffeehouse Count(2)(3) 18,176 18,311 (1)% Net revenues $7,328.4 $6,901.5 6% Operating Income $898.4 $308.5 191% Operating Margin 12.3% 4.5% 780 bps (1)Includes only Starbucks®company-operated coffeehouses open 13 months or longer. Comparable coffeehouse sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail coffeehouses. Coffeehouses that are temporarily closed for fewer than three weeks or operating at reduced hours remain in comparable coffeehouse sales while coffeehouses identified for permanent closures are removed in the month following closure. (2)Includes 250 coffeehouses closed in the quarter ended September 27, 2026, as part of our “Back to Starbucks” fourth quarter of fiscal 2026 restructuring plan. (3)Includes 19 and 584 coffeehouses closed in the quarters ended September 27, 2026 and September 28, 2025, respectively as part of our “Back to Starbucks” fourth quarter of fiscal 2025 restructuring plan.
Net revenues for the North America segment increased 6% over Q4 FY25 to $7.3 billion in Q4 FY26, primarily driven by an increase in company-operated coffeehouse revenue due to a 7.9% increase in comparable coffeehouse sales, driven by a 5.0% increase in average ticket, primarily due to strength in product mix and customer food attach, pricing and higher delivery sales, and a 2.7% increase in comparable transactions.
Operating income increased to $898.4 million in Q4 FY26 compared to $308.5 million in Q4 FY25. Operating margin of 12.3% expanded from 4.5% in the prior year, primarily driven by lower restructuring costs and sales leverage. 3 Q4 International Segment Results
Quarter Ended ($ in millions) Sep 27, 2026 Sep 28, 2025 Change (%) ────────────────────────────────────────────────────────────────────────────── Change in Comparable Coffeehouse 0.9% 3.2% Sales(1) Change in Transactions (2.8)% 6.3% Change in Ticket 3.7% (2.9)% Coffeehouse Count(2) 23,431 22,679 3% Net revenues $1,305.8 $2,070.9 (37)% Operating Income $256.9 $223.2 15% Operating Margin 19.7% 10.8% 890 bps (1)Includes only Starbucks® company-operated coffeehouses open 13 months or longer. Comparable coffeehouse sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail coffeehouses. Coffeehouses that are temporarily closed for fewer than three weeks or operating at reduced hours remain in comparable coffeehouse sales while coffeehouses identified for permanent closures are removed in the month following closure. (2)Includes 43 coffeehouses closed in the quarter ended September 28, 2025, as part of our “Back to Starbucks” fourth quarter of fiscal 2025 restructuring plan.
Net revenues for the International segment decreased 37% over Q4 FY25 to $1.3 billion in Q4 FY26, primarily driven by the conversion of Starbucks retail operations in China to our licensed joint venture model in the third quarter of fiscal 2026, which drove lower company-operated coffeehouse revenues and largely contributed to higher product sales to, and royalty revenue from, our licensees.
Operating income increased to $256.9 million in Q4 FY26 compared to $223.2 million in Q4 FY25. Operating margin of 19.7% expanded from 10.8% in the prior year, primarily driven by the conversion of Starbucks retail operations in China to our licensed joint venture model in the third quarter of fiscal 2026 and lower restructuring costs.
Net revenues for the Channel Development segment decreased 9% over Q4 FY25 to $494.4 million in Q4 FY26, primarily due to a decrease in revenue in the Global Coffee Alliance.
Operating income decreased to $264.3 million in Q4 FY26 compared to $265.2 million in Q4 FY25. Operating margin of 53.5% expanded from 48.9% in the prior year, primarily driven by mix shifts and higher income from the North American Coffee Partnership joint venture relative to segment revenue.
1. As part of its efforts to strengthen its coffeehouse portfolio under its “ Back to Starbucks ” strategy, the company further assessed its existing North America store portfolio and in September 2026, closed approximately 250 company- operated North America coffeehouses that do not deliver the coffeehouse experience and financial performance expected of the brand. The company remains confident in its long-term growth opportunity in North America.
2. The Board declared a cash dividend of $0.63 per share, payable on November 27, 2026 to shareholders of record on November 13, 2026. The company had 66 consecutive quarters of dividend payouts with CAGR of 16.6% over that time period, demonstrating the company's commitment to consistent value creation for shareholders. 4
The company introduces the following fiscal 2027 guidance for the full year. Please note that Starbucks fiscal year 2027 is a 53-week year instead of the usual 52-week year. The impact of the 53rd week will be reflected in our results for the fourth quarter of fiscal 2027. All full-year guidance for the metrics noted below is for fiscal year 2027 on a 53-week basis except comparable coffeehouse sales growth metrics, which are relative to fiscal year 2026 on a 52-week basis.
• Consolidated net revenues to decline by approximately 1% year over year, including approximately $700 million related to the 53rd week. The year-over- year decrease is primarily due to the transition of Starbucks China's retail operations to a licensed joint venture model;
• Non-GAAP earnings per share of $3.15 to $3.25, including slightly more than ten cents related to the 53rd week; and
• Approximately 1,200 net new coffeehouses globally across company-operated and licensed businesses, led by International.
Please refer to the section entitled "Non-GAAP Disclosure" and the reconciliation of GAAP measures to non-GAAP measures at the end of this release. Certain projected non-GAAP financial measures cannot be reconciled to the most comparable GAAP measure without unreasonable effort.
Year-over-year comparisons within guidance reflect the retail operations of Starbucks China reported as a company‑operated business for the first half of fiscal year 2026.
The company will provide additional information regarding its business outlook during its regularly scheduled quarterly earnings conference call.
Starbucks will hold a conference call today at 1:15 p.m. Pacific Time, which will be hosted by Brian Niccol, chairman and ceo, and Cathy Smith, cfo. The call will be webcast and can be accessed at http://investor.starbucks.com . A replay of the webcast will be available until end of day Friday, December 11, 2026. The company uses its website as a tool to disclose important information about the company and comply with its disclosure obligations under Regulation Fair Disclosure.
Since 1971, Starbucks Coffee Company has been committed to responsibly sourcing and roasting high-quality arabica coffee. Today, with a global footprint of more than 41,000 company-operated and licensed coffeehouses and a growing presence in consumer-packaged goods, we are the world's premier purveyor of specialty coffee. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our coffeehouses or online at about.starbucks.com or www.starbucks.com .
Certain statements contained herein and in our investor conference call related to these results and progress towards our “Back to Starbucks” plan are “forward- looking” statements within the meaning of applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward- looking statements contain these identifying words. By their nature, forward- looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections. Our forward-looking statements, and the risks and uncertainties related thereto, include, but are not limited to, those described under 5 the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and in other filings with the SEC, as well as, among others:
• the impact of our brand, marketing, promotional, advertising and pricing strategies, platforms, reformulations, innovations, or customer experience initiatives or investments;
• the costs and risks associated with, and the successful and timely execution and effects of, our existing and any future business opportunities, expansions, initiatives, strategies, investments, transformation efforts, and plans, including our “Back to Starbucks” strategy and our restructuring plans;
• the costs and risks associated with, and the successful execution and effects of, strategic changes to our ownership and operating structure, including as a result of acquisitions, divestitures, other strategic transactions or entry into joint ventures, including our joint venture with respect to Starbucks retail operations in China;
• evolving consumer preferences, demand, consumption, or spending behavior, reduction in discretionary spending and price increases, and our ability to anticipate or react to these changes;
• the ability of our business partners, suppliers, and third-party providers to fulfill their responsibilities and commitments and our reliance on certain key business partners and suppliers;
• the potential negative effects of food or beverage-safety incidents or product recalls, including any perceived association of our products or brands with such incidents;
• our ability to open new coffeehouses and efficiently maintain the attractiveness of our existing coffeehouses and manage related costs;
• our heavy reliance on the financial performance of our North America operating segment and our dependence on the performance and growth of certain international markets;
• our ability to operate and successfully expand our footprint in international markets, which is influenced by factors distinct from our North America operating segment;
• inherent risks of operating a global business, including changing conditions in our markets, local factors affecting coffeehouse openings, protectionist trade or foreign investment policies, including trade restrictions, tariffs, quotas, import/export regulations, customs restrictions, sanctions, countersanctions, and retaliatory measures; compliance with local laws and other regulations, and local labor policies and conditions, including labor strikes and work stoppages;
• higher costs, lower quality, or unavailability of coffee, dairy, cocoa, energy, water, raw materials, packaging, or product ingredients and related volatility;
• the ability of our supply chain to meet current or future business needs and our ability to scale and improve our forecasting, planning, production, and logistics management;
• the potential impact on our supply chain and operations of adverse weather conditions, natural disasters, or significant increases in logistics costs;
• a worsening in the terms and conditions upon which we engage with our manufacturers and source suppliers;
• the impact of unfavorable macroeconomic conditions and other factors, including economic slowdowns or recessions, rising real estate costs, supply chain disruptions, climate change and extreme weather events, inflation and interest rate fluctuations, government shutdowns, labor unrest, geopolitical instability, disruptions in credit markets and foreign currency exchange rate volatility;
• failure to meet market expectations for our financial performance or any announced guidance and the impact thereof;
• changes in the availability and cost of labor, including any union organizing efforts and our responses to such efforts;
• the impact of, and our ability to respond to, substantial competition from new entrants, consolidations by competitors, and other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods); marketing; category expansion; product introductions; or entry or expansion in our geographic markets;
• evolving corporate governance and public disclosure regulations and expectations, including with respect to sustainability matters;
• failure to comply with applicable laws and complex and changing legal and regulatory requirements, including those governing privacy, data protection, artificial intelligence, and other emerging technologies ;
• the impact or likelihood of significant legal disputes and proceedings or government investigations; 6 • the unauthorized access, use, theft, or destruction of our data, or of our proprietary or confidential information, including as a result of increasingly sophisticated threats enabled or accelerated by artificial intelligence, and the impact thereof;
• potential negative effects of, and our ability to respond to, a material failure, inadequacy, or interruption of our information technology systems or digital platforms, or those of our third-party business partners or service providers, or failure to comply with data protection laws; and
• our ability to adequately protect our intellectual property or adequately ensure that we are not infringing the intellectual property of others.
In addition, many of the foregoing risks and uncertainties are, or could be, exacerbated by any worsening of the global business and economic environment, and new risks periodically emerge. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this release. We are under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise.
We believe the company's financial results and long-term growth model will continue to be driven by new coffeehouse openings, comparable coffeehouse sales growth and operating margin management. We believe these key operating metrics are useful to investors because management uses these metrics to assess the growth of our business and the effectiveness of our marketing and operational strategies.
Starbucks Contact, Investor Relations: Starbucks Contact, Media: Catherine Park Emily Albright investorrelations@starbucks.com press@starbucks.com
Sep 27, Sep 28, 2026 2025 ──────────────────────────────────────────────────────────────────────── ASSETS Current assets: Cash and cash equivalents $ 3,679.9 $ 3,219.8 Short-term investments 184.3 247.2 Accounts receivable, net 1,177.5 1,277.5 Inventories 2,243.4 2,185.6 Prepaid expenses and other current 386.3 452.2 assets Total current assets 7,671.4 7,382.3 Long-term investments 309.5 246.9 Equity investments 1,784.1 466.2 Property, plant and equipment, net 6,944.1 8,493.5 Operating lease, right-of-use asset 7,858.9 9,315.7 Deferred income taxes, net 1,611.9 1,826.9 Other long-term assets 791.2 752.5 Other intangible assets 169.6 166.8 Goodwill 1,249.2 3,368.9 TOTAL ASSETS $ 28,389.9 $ 32,019.7 LIABILITIES AND SHAREHOLDERS’ EQUITY/(DEFICIT) Current liabilities: Accounts payable $ 1,868.5 $ 1,852.8 Accrued liabilities 2,752.3 2,359.7 Accrued payroll and benefits 891.3 1,093.9 Current portion of operating lease 1,344.3 1,564.5 liability Stored value card liability and current 1,758.4 1,840.6 portion of deferred revenue Current portion of long-term debt 1,499.0 1,498.9 Total current liabilities 10,113.8 10,210.4 Long-term debt 11,777.9 14,575.9 Operating lease liability 7,792.4 8,972.2 Deferred revenue 5,582.6 5,772.6 Other long-term liabilities 785.0 577.8 Total liabilities 36,051.7 40,108.9 Shareholders’ deficit: Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and 1.1 1.1 outstanding, 1,140.1 and 1,136.9 shares, respectively Additional paid-in-capital 1,000.4 634.1 Retained deficit -8,583.7 -8,272.5 Accumulated other comprehensive -86.9 -459.3 income/(loss) Total shareholders’ deficit -7,669.1 -8,096.6 Noncontrolling interests 7.3 7.4 Total deficit -7,661.8 -8,089.2 TOTAL LIABILITIES AND SHAREHOLDERS’ $ 28,389.9 $ 32,019.7 EQUITY/(DEFICIT)
Sep 27, Sep 28, Sep 29, Year Ended 2026 2025 2024 ────────────────────────────────────────────────────────────────────────────── OPERATING ACTIVITIES: Net earnings including noncontrolling $ 2,526.1 $ 1,856.7 $ 3,762.3 interests Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and 1,595.0 1,771.5 1,592.4 amortization Deferred income taxes, 144.4 -90.6 -13.8 net Income earned from equity method -297.7 -274.2 -306.4 investees, net Distributions received from equity 187.9 294.4 333.3 method investees Net gain resulting from divestiture of -536.3 — — certain operations Stock-based 368.6 318.3 308.3 compensation Non-cash lease costs 1,303.0 1,513.8 1,314.9 Loss on disposal, impairment, and 685.5 834.7 121.5 accelerated amortization of assets Other 4.8 17.3 31.9 Cash provided by/(used in) changes in operating assets and liabilities: Accounts receivable -2.6 -89.7 18.4 Inventories -176.4 -408.4 42.8 Income taxes payable 427.3 103.8 -61.9 Accounts payable 224.1 261.0 28.0 Deferred revenue -62.7 -120.7 -72.2 Operating lease -1,630.5 -1,576.7 -1,294.9 liability Other operating assets 227.9 336.3 291.0 and liabilities Net cash provided by/(used in) operating 4,988.4 4,747.5 6,095.6 activities INVESTING ACTIVITIES: Purchases of -182.4 -333.6 -627.5 investments Sales of investments 25.6 1.1 10.3 Maturities and calls 165.0 391.8 768.2 of investments Additions to property, plant and -1,263.6 -2,305.5 -2,777.5 equipment Acquisitions, net of — -177.1 — cash acquired Net proceeds from the divestiture of 2,544.2 — — certain operations Other -176.2 -62.1 -72.7 Net cash provided by/(used in) investing 1,112.6 -2,485.4 -2,699.2 activities FINANCING ACTIVITIES: Net proceeds from issuance of short-term 2.5 2.4 123.8 debt Repayments of — -7.8 -157.5 short-term debt Net proceeds from issuance of long-term — 1,748.5 1,995.3 debt Repayments of -2,815.9 -1,250.0 -1,825.1 long-term debt Proceeds from issuance 66.4 77.0 108.0 of common stock Cash dividends paid -2,824.7 -2,771.4 -2,585.0 Minimum tax withholdings on -73.0 -87.4 -100.4 share-based awards Other — -9.3 -10.6 Net cash provided by/(used in) financing -5,644.7 -2,298.0 -3,718.2 activities Effect of exchange rate changes on cash 3.8 -30.5 56.5 and cash equivalents Net increase/(decrease) in 460.1 -66.4 -265.3 cash and cash equivalents CASH AND CASH EQUIVALENTS: Beginning of period 3,219.8 3,286.2 3,551.5 End of period $ 3,679.9 $ 3,219.8 $ 3,286.2 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Interest, net of $ 603.0 $ 588.3 $ 570.7 capitalized interest Income taxes $ 684.0 $ 715.6 $ 1,373.3
The following supplemental information is provided for historical and comparative purposes.
Quarter Ended ($ in millions) Sep 27, 2026 Sep 28, 2025 Change (%) ────────────────────────────────────────────────────────────────────────────── Net revenues $6,834.4 $6,429.0 6% Change in Comparable Coffeehouse 7.7% (0.3)% Sales(1) Change in Transactions 2.4% (0.9)% Change in Ticket 5.2% 0.7% Coffeehouse Count(2)(3) 16,781 16,864 —% (1)Includes only Starbucks® company-operated coffeehouses open 13 months or longer. Comparable coffeehouse sales exclude Siren Retail coffeehouses. Coffeehouses that are temporarily closed for fewer than three weeks or operating at reduced hours remain in comparable coffeehouse sales while coffeehouses identified for permanent closures are removed in the month following closure. (2)Includes 212 coffeehouses closed in the quarter ended September 27, 2026 as part of our “Back to Starbucks” fourth quarter of fiscal 2026 restructuring plan. (3)Includes 19 and 520 coffeehouses closed in the quarters ended September 27, 2026 and September 28, 2025, respectively, as part of our “Back to Starbucks” fourth quarter of fiscal 2025 restructuring plan.
(1) Includes 250 coffeehouses closed in the quarter and year ended September 27, 2026, as part of our “Back to Starbucks” fourth quarter of fiscal 2026 restructuring plan.
(2) Includes 19 and 266 coffeehouses closed in the quarter and year ended September 27, 2026, respectively, as part of our “Back to Starbucks” fourth quarter of fiscal 2025 restructuring plan.
(3) Includes 627 coffeehouses closed in the quarter and year ended September 28, 2025, as part of our “Back to Starbucks” fourth quarter of fiscal 2025 restructuring plan.
(4) Includes the conversion of 113 licensed coffeehouses to company-operated coffeehouses following the acquisition of 23.5 Degrees Topco Limited during the first quarter of fiscal 2025.
(5) Includes the conversion of 7,991 company-operated coffeehouses to licensed coffeehouses following the divestiture of Starbucks retail operations in China in the third quarter of fiscal 2026. 15
In addition to the generally accepted accounting principles in the United States (GAAP) results provided in this release, the company provides certain non-GAAP financial measures in this release that are not in accordance with, or alternatives for, GAAP. Our non-GAAP financial measures of non-GAAP general and administrative expenses (G&A), non-GAAP operating income, non-GAAP operating income growth (loss), non-GAAP operating margin, non-GAAP effective tax rate and non-GAAP earnings per share exclude the below-listed items and their related tax impacts, as management believes this exclusion contributes to a more meaningful evaluation of the company ’ s future operating performance and comparisons to the company's past operating performance. The GAAP measures most directly comparable to non-GAAP G&A, non-GAAP operating income, non-GAAP operating income growth (loss), non-GAAP operating margin, non-GAAP effective tax rate and non- GAAP earnings per share are G&A, operating income, operating income growth (loss), operating margin, effective tax rate and diluted net earnings per share, respectively.
Non-GAAP Exclusion Rationale Management excludes restructuring and impairment costs relating to the write-down of certain Restructuring and impairment costs company-operated assets and employee severance costs for the reasons discussed above. These expenses are anticipated to be completed within a finite period of time. Management excludes transaction and transition costs for the reasons Transaction and transition costs discussed above. These expenses are anticipated to be completed within a finite period of time. Management excludes settlements that are associated with litigation events that are not expected to Litigation settlements recur at a similar frequency and magnitude in the future for the reasons discussed above. The amounts represent a cash settlement received by the Company. Management excludes transformation costs that reflect temporary, incremental third‑party professional services incurred in connection with Transformation costs a defined initiative to implement changes to certain processes and operating models. These expenses are anticipated to be completed within a finite period of time. Net gain resulting from divestiture Management excludes the net gain of resulting from the divestiture of certain operations Starbucks retail operations in China for the reasons discussed above.
The company also presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present the constant currency information, including with respect to consolidated net revenues, operating income, operating margin, and earnings per share, current period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average monthly exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods, excluding related hedging activities. We believe the presentation of results on a constant currency basis in addition to GAAP results helps users better understand our performance, because it excludes the effects of foreign currency volatility that are not indicative of our underlying operating results.
Non-GAAP G&A, non-GAAP operating income, non-GAAP operating income growth (loss), non-GAAP operating margin, non-GAAP effective tax rate, non-GAAP earnings per share, and constant currency may have limitations as analytical tools. These measures should not be considered in isolation or as a substitute for analysis of the company ’ s results as reported under GAAP. Other companies may calculate these non-GAAP financial measures differently than the company does, limiting the usefulness of those measures for comparative purposes.
The company is unable to provide a reconciliation of our Non-GAAP consolidated operating margin guidance target to the corresponding GAAP financial measure because the company believes that it would not be possible for it to have the required information necessary to quantitatively reconcile such measures with sufficient precision without unreasonable efforts. 16
(3) Represents transaction and transition-related expenses related to the strategic partnership with Boyu Capital to operate Starbucks retail in China.
(4) Represents transformation costs to support the further optimization of our global support organization.
(5) Related to settlements associated with litigation events that are not expected to recur at a similar frequency and magnitude in the future.
(6) Adjustments were determined based on the nature of the underlying items and their relevant jurisdictional tax rates. 18
(3) Represents transaction and transition-related expenses related to the strategic partnership with Boyu Capital to operate Starbucks retail in China.
(4) Represents transformation costs to support the further optimization of our global support organization.
(5) Related to settlements associated with litigation events that are not expected to recur at a similar frequency and magnitude in the future.
(6) Represents the net gain resulting from the divestiture of Starbucks retail operations in China during the third quarter of fiscal 2026.
(7) Represents the impact from changes in indefinite reinvestment assertions as a result of classifying our Starbucks retail operations in China as held for sale in the first quarter of fiscal 2026.
(8) Adjustments were determined based on the nature of the underlying items and their relevant jurisdictional tax rates. 19
(1) Adjustments were determined based on the nature of the underlying items and their relevant jurisdictional tax rates.
(1) Adjustments were determined based on the nature of the underlying items and their relevant jurisdictional tax rates. 20
(2) Represents transaction and transition-related expenses related to the strategic partnership with Boyu Capital to operate Starbucks retail in China.
(3) Represents transformation costs to support the further optimization of our global support organization.
(2) Represents transaction and transition-related expenses related to the strategic partnership with Boyu Capital to operate Starbucks retail in China.
(3) Represents transformation costs to support the further optimization of our global support organization. 21
Full text with the tables
Exhibit 99.1
Starbucks Reports Q4 and Full Fiscal Year 2026 Results
“ Back to Starbucks ” Plan Drives Strong Business Momentum in Fiscal Year 2026
Global Q4 Comparable Coffeehouse Sales Up 7.2%
Q4 Consolidated Net Revenues Down 4% to $9.1 billion, Reflecting the Starbucks
China Transaction
Q4 GAAP Operating Margin 10.8%, Up 790 Basis Points; Non-GAAP Operating Margin
14.0%, Up 450 Basis Points
Q4 GAAP EPS $0.59, Up 392% ; Non-GAAP EPS $0.80, Up 54%
Company Introduces Fiscal Year 2027 Guidance
SEATTLE; October 29, 2026 – Starbucks Corporation (Nasdaq: SBUX) today reported
financial results for its 13-week fiscal fourth quarter and 52-week fiscal year
ended September 27, 2026. GAAP results in fiscal 2026 and fiscal 2025 include
items that are excluded from non-GAAP results. Please refer to the
reconciliation of GAAP measures to non-GAAP measures at the end of this release
for more information.
Q4 Fiscal Year 2026 Highlights
• Global comparable coffeehouse sales increased 7.2%, primarily driven by a 5.2%
increase in average ticket and a 1.8% increase in comparable transactions
◦ North America comparable coffeehouse sales increased 7.9%, primarily driven by
a 5.0% increase in average ticket and a 2.7% increase in comparable
transactions; U.S. comparable coffeehouse sales increased 7.7%, primarily driven
by a 5.2% increase in average ticket and a 2.4% increase in comparable
transactions
◦ International comparable coffeehouse sales increased 0.9%, primarily driven by
a 3.7% increase in average ticket, partially offset by a 2.8% decline in
comparable transactions
• The company opened 303 net new coffeehouses in Q4, ending the period with
41,607 coffeehouses: 32% company-operated and 68% licensed
◦ At the end of Q4, coffeehouses in the U.S. comprised 40% of the company’s
global portfolio, ending the period with 16,781 coffeehouses
• Consolidated net revenues decreased 4% to $9.1 billion, including on a
constant currency basis, primarily driven by the conversion of Starbucks retail
operations in China to a licensed joint venture model
• GAAP operating margin expanded 790 basis points year-over-year to 10.8%,
primarily driven by lower restructuring costs and sales leverage
◦ Non-GAAP operating margin expanded 460 basis points year-over-year to 14.0%,
or 450 basis points on a constant currency basis
• Effective tax rate of 27.1% compared to 18.8% in the prior year, with the
increase primarily due to the proportionate impact of certain permanent
differences and discrete items in relation to higher pre-tax earnings, and the
divestiture of Starbucks retail operations in China in the third quarter of
fiscal 2026
◦ Non-GAAP effective tax rate increased 100 basis points to 24.7%
• GAAP earnings per share of $0.59 increased 392% over prior year
◦ Non-GAAP earnings per share of $0.80 expanded 54% over prior year, including
on a constant currency basis
Full Fiscal Year 2026 Highlights
•
Global comparable coffeehouse sales increased 6.2%, primarily driven by a 3.2%
increase in comparable transactions and a 3.0% increase in average ticket
◦ North America comparable coffeehouse sales increased 6.6%, primarily driven by
a 3.6% increase in comparable transactions and a 3.0% increase in average
ticket; U.S. comparable coffeehouse sales increased 6.5%, primarily driven by a
3.4% increase in comparable transactions and a 3.0% increase in average ticket
◦ International comparable coffeehouse sales increased 3.7%, primarily driven by
a 2.0% increase in average ticket and a 1.6% increase in comparable transactions
• Consolidated net revenues increased 2% to $37.9 billion, including on a
constant currency basis
2
• GAAP operating margin expanded 180 basis points year-over-year to 9.7%,
primarily driven by sales leverage, partially offset by labor investments
largely in support of “Back to Starbucks”
◦ Non-GAAP operating margin expanded 200 basis points year-over-year to 11.9%,
including on a constant currency basis
• The divestiture of Starbucks retail operations in China in the third quarter
of fiscal 2026 resulted in a pre-tax gain of $536.3 million
• Effective tax rate of 34.2% compared to 25.9% in the prior year. The increase
was primarily due to the discrete impact of changes in indefinite reinvestment
assertions as a result of classifying our Starbucks retail operations in China
as held for sale in the first quarter of fiscal 2026, impacts resulting from the
divestiture of Starbucks retail operations in China in the third quarter of
fiscal 2026, and lapping the discrete impact of a tax status change for a
certain foreign entity in the first quarter of fiscal 2025.
◦ Non-GAAP effective tax rate decreased 90 basis points to 24.8%
• GAAP earnings per share of $2.21 increased 36% over prior year
◦ Non-GAAP earnings per share of $2.72 increased 28% over prior year, or 27% on
a constant currency basis
“We had a terrific quarter and a great year driven by our focus on the
fundamentals and what has always set Starbucks apart: exceptional coffee, a
moment of connection and a world-class customer experience. This gives me
confidence our performance is durable,” commented Brian Niccol, chairman and
chief executive officer. “Back to Starbucks started as our turnaround plan. Now,
it's our growth plan.”
“In fiscal 2026, we returned to comp growth, expanded margin and delivered
stronger earnings, and we intend to build on that progress in fiscal 2027,”
commented Cathy Smith, chief financial officer. “Our recently increased dividend
and plans to resume share repurchases in fiscal 2027 underscore our confidence
and disciplined focus on driving sustainable long-term value.”
Q4 North America Segment Results
Quarter Ended
($ in millions) Sep 27, 2026 Sep 28, 2025 Change (%)
──────────────────────────────────────────────────────────────────────────────
Change in Comparable
Coffeehouse 7.9% 0.0%
Sales(1)
Change in Transactions 2.7% (0.6)%
Change in Ticket 5.0% 0.6%
Coffeehouse Count(2)(3) 18,176 18,311 (1)%
Net revenues $7,328.4 $6,901.5 6%
Operating Income $898.4 $308.5 191%
Operating Margin 12.3% 4.5% 780 bps
(1)Includes only
Starbucks®company-operated
coffeehouses open 13 months
or longer. Comparable
coffeehouse sales exclude the
effects of fluctuations in
foreign currency exchange
rates and Siren Retail
coffeehouses. Coffeehouses
that are temporarily closed
for fewer than three weeks or
operating at reduced hours
remain in comparable
coffeehouse sales while
coffeehouses identified for
permanent closures are
removed in the month
following closure.
(2)Includes 250 coffeehouses
closed in the quarter ended
September 27, 2026, as part
of our “Back to Starbucks”
fourth quarter of fiscal 2026
restructuring plan.
(3)Includes 19 and 584
coffeehouses closed in the
quarters ended September 27,
2026 and September 28, 2025,
respectively as part of our
“Back to Starbucks” fourth
quarter of fiscal 2025
restructuring plan.
Net revenues for the North America segment increased 6% over Q4 FY25 to $7.3
billion in Q4 FY26, primarily driven by an increase in company-operated
coffeehouse revenue due to a 7.9% increase in comparable coffeehouse sales,
driven by a 5.0% increase in average ticket, primarily due to strength in
product mix and customer food attach, pricing and higher delivery sales, and a
2.7% increase in comparable transactions.
Operating income increased to $898.4 million in Q4 FY26 compared to $308.5
million in Q4 FY25. Operating margin of 12.3% expanded from 4.5% in the prior
year, primarily driven by lower restructuring costs and sales leverage.
3
Q4 International Segment Results
Quarter Ended
($ in millions) Sep 27, 2026 Sep 28, 2025 Change (%)
──────────────────────────────────────────────────────────────────────────────
Change in Comparable
Coffeehouse 0.9% 3.2%
Sales(1)
Change in Transactions (2.8)% 6.3%
Change in Ticket 3.7% (2.9)%
Coffeehouse Count(2) 23,431 22,679 3%
Net revenues $1,305.8 $2,070.9 (37)%
Operating Income $256.9 $223.2 15%
Operating Margin 19.7% 10.8% 890 bps
(1)Includes only Starbucks®
company-operated coffeehouses
open 13 months or longer.
Comparable coffeehouse sales
exclude the effects of
fluctuations in foreign
currency exchange rates and
Siren Retail coffeehouses.
Coffeehouses that are
temporarily closed for fewer
than three weeks or operating
at reduced hours remain in
comparable coffeehouse sales
while coffeehouses identified
for permanent closures are
removed in the month
following closure.
(2)Includes 43 coffeehouses
closed in the quarter ended
September 28, 2025, as part
of our “Back to Starbucks”
fourth quarter of fiscal 2025
restructuring plan.
Net revenues for the International segment decreased 37% over Q4 FY25 to $1.3
billion in Q4 FY26, primarily driven by the conversion of Starbucks retail
operations in China to our licensed joint venture model in the third quarter of
fiscal 2026, which drove lower company-operated coffeehouse revenues and largely
contributed to higher product sales to, and royalty revenue from, our licensees.
Operating income increased to $256.9 million in Q4 FY26 compared to $223.2
million in Q4 FY25. Operating margin of 19.7% expanded from 10.8% in the prior
year, primarily driven by the conversion of Starbucks retail operations in China
to our licensed joint venture model in the third quarter of fiscal 2026 and
lower restructuring costs.
Q4 Channel Development Segment Results
Quarter Ended
($ in millions) Sep 27, 2026 Sep 28, 2025 Change (%)
─────────────────────────────────────────────────────────────────
Net revenues $494.4 $542.6 (9)%
Operating Income $264.3 $265.2 —%
Operating Margin 53.5% 48.9% 460 bps
Net revenues for the Channel Development segment decreased 9% over Q4 FY25 to
$494.4 million in Q4 FY26, primarily due to a decrease in revenue in the Global
Coffee Alliance.
Operating income decreased to $264.3 million in Q4 FY26 compared to $265.2
million in Q4 FY25. Operating margin of 53.5% expanded from 48.9% in the prior
year, primarily driven by mix shifts and higher income from the North American
Coffee Partnership joint venture relative to segment revenue.
Company Updates
1. As part of its efforts to strengthen its coffeehouse portfolio under its “
Back to Starbucks ” strategy, the company further assessed its existing North
America store portfolio and in September 2026, closed approximately 250 company-
operated North America coffeehouses that do not deliver the coffeehouse
experience and financial performance expected of the brand. The company remains
confident in its long-term growth opportunity in North America.
2. The Board declared a cash dividend of $0.63 per share, payable on November
27, 2026 to shareholders of record on November 13, 2026. The company had 66
consecutive quarters of dividend payouts with CAGR of 16.6% over that time
period, demonstrating the company's commitment to consistent value creation for
shareholders.
4
Fiscal Year 2027 Guidance
The company introduces the following fiscal 2027 guidance for the full year.
Please note that Starbucks fiscal year 2027 is a 53-week year instead of the
usual 52-week year. The impact of the 53rd week will be reflected in our results
for the fourth quarter of fiscal 2027. All full-year guidance for the metrics
noted below is for fiscal year 2027 on a 53-week basis except comparable
coffeehouse sales growth metrics, which are relative to fiscal year 2026 on a
52-week basis.
• Consolidated net revenues to decline by approximately 1% year over year,
including approximately $700 million related to the 53rd week. The year-over-
year decrease is primarily due to the transition of Starbucks China's retail
operations to a licensed joint venture model;
• North America comparable coffeehouse sales growth of approximately 4.0%;
• Non-GAAP consolidated operating margin of 13.5% to 14.0%;
• Non-GAAP earnings per share of $3.15 to $3.25, including slightly more than
ten cents related to the 53rd week; and
• Approximately 1,200 net new coffeehouses globally across company-operated and
licensed businesses, led by International.
Please refer to the section entitled "Non-GAAP Disclosure" and the
reconciliation of GAAP measures to non-GAAP measures at the end of this release.
Certain projected non-GAAP financial measures cannot be reconciled to the most
comparable GAAP measure without unreasonable effort.
Year-over-year comparisons within guidance reflect the retail operations of
Starbucks China reported as a company‑operated business for the first half of
fiscal year 2026.
The company will provide additional information regarding its business outlook
during its regularly scheduled quarterly earnings conference call.
Conference Call
Starbucks will hold a conference call today at 1:15 p.m. Pacific Time, which
will be hosted by Brian Niccol, chairman and ceo, and Cathy Smith, cfo. The call
will be webcast and can be accessed at http://investor.starbucks.com . A replay
of the webcast will be available until end of day Friday, December 11, 2026.
The company uses its website as a tool to disclose important information about
the company and comply with its disclosure obligations under Regulation Fair
Disclosure.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to responsibly sourcing
and roasting high-quality arabica coffee. Today, with a global footprint of more
than 41,000 company-operated and licensed coffeehouses and a growing presence in
consumer-packaged goods, we are the world's premier purveyor of specialty
coffee. Through our unwavering commitment to excellence and our guiding
principles, we bring the unique Starbucks Experience to life for every customer
through every cup. To share in the experience, please visit us in our
coffeehouses or online at about.starbucks.com or www.starbucks.com .
Forward-Looking Statements
Certain statements contained herein and in our investor conference call related
to these results and progress towards our “Back to Starbucks” plan are “forward-
looking” statements within the meaning of applicable securities laws and
regulations. Generally, these statements can be identified by the use of words
such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,”
“expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,”
“predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions
intended to identify forward-looking statements, although not all forward-
looking statements contain these identifying words. By their nature, forward-
looking statements involve risks, uncertainties, and other factors (many beyond
our control) that could cause our actual results to differ materially from our
historical experience or from our current expectations or projections. Our
forward-looking statements, and the risks and uncertainties related thereto,
include, but are not limited to, those described under
5
the “Risk Factors” and “Management's Discussion and Analysis of Financial
Condition and Results of Operations” sections of the company’s most recently
filed periodic reports on Form 10-K and Form 10-Q and in other filings with the
SEC, as well as, among others:
• our ability to preserve, grow, and leverage our brands;
• the impact of our brand, marketing, promotional, advertising and pricing
strategies, platforms, reformulations, innovations, or customer experience
initiatives or investments;
• the costs and risks associated with, and the successful and timely execution
and effects of, our existing and any future business opportunities, expansions,
initiatives, strategies, investments, transformation efforts, and plans,
including our “Back to Starbucks” strategy and our restructuring plans;
• the costs and risks associated with, and the successful execution and effects
of, strategic changes to our ownership and operating structure, including as a
result of acquisitions, divestitures, other strategic transactions or entry into
joint ventures, including our joint venture with respect to Starbucks retail
operations in China;
• our ability to align our investment efforts with our strategic goals;
• evolving consumer preferences, demand, consumption, or spending behavior,
reduction in discretionary spending and price increases, and our ability to
anticipate or react to these changes;
• the ability of our business partners, suppliers, and third-party providers to
fulfill their responsibilities and commitments and our reliance on certain key
business partners and suppliers;
• the potential negative effects of food or beverage-safety incidents or product
recalls, including any perceived association of our products or brands with such
incidents;
• our ability to open new coffeehouses and efficiently maintain the
attractiveness of our existing coffeehouses and manage related costs;
• our heavy reliance on the financial performance of our North America operating
segment and our dependence on the performance and growth of certain
international markets;
• our ability to operate and successfully expand our footprint in international
markets, which is influenced by factors distinct from our North America
operating segment;
• inherent risks of operating a global business, including changing conditions
in our markets, local factors affecting coffeehouse openings, protectionist
trade or foreign investment policies, including trade restrictions, tariffs,
quotas, import/export regulations, customs restrictions, sanctions,
countersanctions, and retaliatory measures; compliance with local laws and other
regulations, and local labor policies and conditions, including labor strikes
and work stoppages;
• higher costs, lower quality, or unavailability of coffee, dairy, cocoa,
energy, water, raw materials, packaging, or product ingredients and related
volatility;
• the ability of our supply chain to meet current or future business needs and
our ability to scale and improve our forecasting, planning, production, and
logistics management;
• the potential impact on our supply chain and operations of adverse weather
conditions, natural disasters, or significant increases in logistics costs;
• a worsening in the terms and conditions upon which we engage with our
manufacturers and source suppliers;
• the impact of unfavorable macroeconomic conditions and other factors,
including economic slowdowns or recessions, rising real estate costs, supply
chain disruptions, climate change and extreme weather events, inflation and
interest rate fluctuations, government shutdowns, labor unrest, geopolitical
instability, disruptions in credit markets and foreign currency exchange rate
volatility;
• failure to meet market expectations for our financial performance or any
announced guidance and the impact thereof;
• failure to attract or retain key executive or partner talent;
• changes in the availability and cost of labor, including any union organizing
efforts and our responses to such efforts;
• the impact of, and our ability to respond to, substantial competition from new
entrants, consolidations by competitors, and other competitive activities, such
as pricing actions (including price reductions, promotions, discounting,
couponing, or free goods); marketing; category expansion; product introductions;
or entry or expansion in our geographic markets;
• evolving corporate governance and public disclosure regulations and
expectations, including with respect to sustainability matters;
• the potential impact of activist shareholder actions or tactics;
• failure to comply with applicable laws and complex and changing legal and
regulatory requirements, including those governing privacy, data protection,
artificial intelligence, and other emerging technologies ;
• the impact or likelihood of significant legal disputes and proceedings or
government investigations;
6
• the unauthorized access, use, theft, or destruction of our data, or of our
proprietary or confidential information, including as a result of increasingly
sophisticated threats enabled or accelerated by artificial intelligence, and the
impact thereof;
• potential negative effects of, and our ability to respond to, a material
failure, inadequacy, or interruption of our information technology systems or
digital platforms, or those of our third-party business partners or service
providers, or failure to comply with data protection laws; and
• our ability to adequately protect our intellectual property or adequately
ensure that we are not infringing the intellectual property of others.
In addition, many of the foregoing risks and uncertainties are, or could be,
exacerbated by any worsening of the global business and economic environment,
and new risks periodically emerge. A forward-looking statement is neither a
prediction nor a guarantee of future events or circumstances, and those future
events or circumstances may not occur. Actual results could differ materially
and adversely from those anticipated or implied in the forward-looking
statements. You should not place undue reliance on the forward-looking
statements, which speak only as of the date of this release. We are under no
obligation to update or alter any forward-looking statements, whether as a
result of new information, future events, or otherwise.
Key Metrics
We believe the company's financial results and long-term growth model will
continue to be driven by new coffeehouse openings, comparable coffeehouse sales
growth and operating margin management. We believe these key operating metrics
are useful to investors because management uses these metrics to assess the
growth of our business and the effectiveness of our marketing and operational
strategies.
Contacts:
Starbucks Contact, Investor Relations: Starbucks Contact, Media:
Catherine Park Emily Albright
investorrelations@starbucks.com press@starbucks.com
7
STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited, in millions, except per share data)
Sep Sep Sep Sep
Quar… 27, 28, % Quar… 27, 28,
Ended 2026 2025 Cha… Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
As a
% of
total
net
reve…
Net
rev…
Com… $ 7,42… $ 7,8… (5.5… 81.3 % 82.2 %
cof…
Lic… 1,19… 1,0… 9.4 13.1 11.4
cof…
Oth… 515.5 614… -16.0 5.6 6.4
Tot…
net 9,14… 9,5… -4.5 100… 100.0
rev…
Pro…
and 2,92… 3,0… -4.8 32.0 32.1
dis…
cos…
Cof…
ope… 4,03… 4,3… -7.0 44.1 45.3
exp…
Oth…
ope… 150.8 141… 6.3 1.6 1.5
exp…
Dep…
and 357.4 430… -17.0 3.9 4.5
amo…
exp…
Gen…
and 517.3 642… -19.4 5.7 6.7
adm…
exp…
Res…
and 272.8 755… -63.9 3.0 7.9
imp…
Tot…
ope… 8,25… 9,3… -12.0 90.3 98.0
exp…
Inc…
from 104.9 85.2 23.1 1.1 0.9
equ…
inv…
Ope… 991.8 278… 256.5 10.8 2.9
inc…
Int…
inc…
and 57.8 31.5 83.5 0.6 0.3
oth…
net
Int… -120… -14… -17.2 -1.3 -1.5
exp…
Ear…
bef… 928.9 163… 466.7 10.2 1.7
inc…
tax…
Inc…
tax 251.7 30.8 717.2 2.8 0.3
exp…
Net
ear…
inc… 677.2 133… 408.8 7.4 1.4
non…
int…
Net
ear…
att… 0.0 0.0 nm 0.0 0.0
to
non…
int…
Net
ear…
att… $ 677.2 $ 133… 408.… 7.4 % 1.4 %
to
Sta…
Net
ear…
per
com… $ 0.59 $ 0.12 391.…
sha…
-
dil…
Wei…
avg.
sha… 1,14… 1,1…
out…
-
dil…
Cash
div…
dec… $ 0.63 $ 0.62
per
sha…
Sup…
Rat…
Cof…
ope…
exp…
as a 54.3 % 55.1 %
% of
com…
cof…
rev…
Eff…
tax
rate 27.1 % 18.8 %
inc…
non…
int…
8
Sep Sep Sep Sep
Year 27, 28, % Year 27, 28,
Ended 2026 2025 Chan… End… 2026 2025
──────────────────────────────────────────────────────────────────────────────
As a
% of
tot…
net
rev…
Net
rev…
Com… $ 30,9… $ 30,7… 0.6% 81.6 % 82.7 %
cof…
Lic… 4,61… 4,35… 6.1 12.2 11.7
cof…
Oth… 2,35… 2,08… 12.7 6.2 5.6
Tot…
net 37,9… 37,1… 2.0 100.0 100…
rev…
Pro…
and 12,2… 11,6… 4.9 32.3 31.4
dis…
cos…
Cof…
ope… 17,1… 17,0… 0.8 45.3 45.9
exp…
Oth…
ope… 544.5 584.6 -6.9 1.4 1.6
exp…
Dep…
and 1,48… 1,68… -12… 3.9 4.5
amo…
exp…
Gen…
and 2,37… 2,61… -9.3 6.3 7.0
adm…
exp…
Res…
and 688.6 892.0 -22… 1.8 2.4
imp…
Tot…
ope… 34,5… 34,4… 0.1 91.0 92.8
exp…
Inc…
from 294.8 247.8 19.0 0.8 0.7
equ…
inv…
Ope… 3,69… 2,93… 25.7 9.7 7.9
inc…
Net
gain
res…
from 536.3 — nm 1.4 —
div…
of
cer…
ope…
Int…
inc…
and 145.0 113.3 28.0 0.4 0.3
oth…
net
Int… -531… -542… -2.1 -1.4 -1.5
exp…
Ear…
bef… 3,84… 2,50… 53.2 10.1 6.7
inc…
tax…
Inc…
tax 1,31… 650.6 102… 3.5 1.7
exp…
Net
ear…
inc… 2,52… 1,85… 36.1 6.7 5.0
non…
int…
Net
ear…
att… -0.6 0.3 nm 0.0 0.0
to
non…
int…
Net
ear…
att… $ 2,52… $ 1,85… 36.… 6.7 % 5.0 %
to
Sta…
Net
ear…
per
com… $ 2.21 $ 1.63 35.…
sha…
-
dil…
Wei…
avg.
sha… 1,14… 1,13…
out…
-
dil…
Cash
div…
dec… $ 2.49 $ 2.45
per
sha…
Sup…
Rat…
Cof…
ope…
exp…
as a 55.6 % 55.5 %
% of
com…
cof…
rev…
Eff…
tax
rate 34.2 % 25.9 %
inc…
non…
int…
9
Segment Results (
in millions
)
North America
Sep Sep Sep Sep
27, 28, % 27, 28,
2026 2025 Chan… 2026 2025
──────────────────────────────────────────────────────────────────────────────
As a
% of
Qua… North
End… Amer…
total
net
reve…
Net
rev…
Com… $ 6,68… $ 6,27… 6.5% 91.3 % 91.0 %
cof…
Lic… 638.4 622.0 2.6 8.7 9.0
cof…
Oth… 1.1 1.7 -35.3 0.0 0.0
Tot…
net 7,32… 6,90… 6.2 100.0 100.0
rev…
Pro…
and 2,10… 1,94… 8.2 28.7 28.2
dis…
cos…
Cof…
ope… 3,61… 3,53… 2.3 49.3 51.2
exp…
Oth…
ope… 56.2 65.0 -13.5 0.8 0.9
exp…
Dep…
and 296.0 304.7 -2.9 4.0 4.4
amo…
exp…
Gen…
and 91.8 119.4 -23.1 1.3 1.7
adm…
exp…
Res…
and 270.2 628.7 -57.0 3.7 9.1
imp…
Tot…
ope… 6,43… 6,59… -2.5 87.7 95.5
exp…
Ope… $ 898.4 $ 308.5 191.… 12.3 % 4.5 %
inc…
Sup…
Rat…
Cof…
ope…
exp…
as a 54.0 % 56.2 %
% of
com…
cof…
rev…
Year
End…
Net
rev…
Com… $ 26,3… $ 24,7… 6.3% 91.2 % 90.6 %
cof…
Lic… 2,52… 2,57… -1.8 8.8 9.4
cof…
Oth… 4.8 4.5 6.7 0.0 0.0
Tot…
net 28,8… 27,3… 5.6 100.0 100.0
rev…
Pro…
and 8,27… 7,62… 8.5 28.7 27.9
dis…
cos…
Cof…
ope… 14,8… 13,9… 6.5 51.5 51.0
exp…
Oth…
ope… 228.7 281.6 -18.8 0.8 1.0
exp…
Dep…
and 1,19… 1,19… -0.3 4.1 4.4
amo…
exp…
Gen…
and 374.3 483.3 -22.6 1.3 1.8
adm…
exp…
Res…
and 489.8 653.2 -25.0 1.7 2.4
imp…
Tot…
ope… 25,4… 24,2… 5.1 88.0 88.5
exp…
Ope… $ 3,45… $ 3,15… 9.4% 12.0 % 11.5 %
inc…
Sup…
Rat…
Cof…
ope…
exp…
as a 56.4 % 56.4 %
% of
com…
cof…
rev…
10
International
Sep Sep Sep Sep
27, 28, % 27, 28,
2026 2025 Chan… 2026 2025
──────────────────────────────────────────────────────────────────────────────
As a
% of
Qua… Inte…
End… total
net
reve…
Net
rev…
Com… $ 740.7 $ 1,58… (53.… 56.7 % 76.5 %
cof…
Lic… 557.7 471.0 18.4 42.7 22.7
cof…
Oth… 7.4 15.7 -52.9 0.6 0.8
Tot…
net 1,30… 2,07… -36.9 100.0 100.0
rev…
Pro…
and 509.4 741.4 -31.3 39.0 35.8
dis…
cos…
Cof…
ope… 418.9 804.2 -47.9 32.1 38.8
exp…
Oth…
ope… 74.2 60.2 23.3 5.7 2.9
exp…
Dep…
and 33.7 94.4 -64.3 2.6 4.6
amo…
exp…
Gen…
and 31.7 85.2 -62.8 2.4 4.1
adm…
exp…
Res…
and 1.6 62.6 -97.4 0.1 3.0
imp…
Tot…
ope… 1,06… 1,84… -42.1 81.9 89.2
exp…
Inc…
from 20.6 0.3 nm 1.6 0.0
equ…
inv…
Ope… $ 256.9 $ 223.2 15.1% 19.7 % 10.8 %
inc…
Sup…
Rat…
Cof…
ope…
exp…
as a 56.6 % 50.8 %
% of
com…
cof…
rev…
Year
End…
Net
rev…
Com… $ 4,57… $ 5,95… (23.… 67.9 % 76.1 %
cof…
Lic… 2,08… 1,77… 17.6 30.9 22.7
cof…
Oth… 81.4 93.3 -12.8 1.2 1.2
Tot…
net 6,74… 7,81… -13.8 100.0 100.0
rev…
Pro…
and 2,52… 2,74… -8.3 37.4 35.2
dis…
cos…
Cof…
ope… 2,31… 3,08… -25.1 34.3 39.5
exp…
Oth…
ope… 244.3 242.0 1.0 3.6 3.1
exp…
Dep…
and 169.5 363.9 -53.4 2.5 4.7
amo…
exp…
Gen…
and 255.7 344.3 -25.7 3.8 4.4
adm…
exp…
Res…
and 95.0 82.5 15.2 1.4 1.1
imp…
Tot…
ope… 5,59… 6,86… -18.5 83.0 87.8
exp…
Inc…
from 42.8 -1.8 nm 0.6 0.0
equ…
inv…
Ope… $ 1,19… $ 950.0 25.4% 17.7 % 12.1 %
inc…
Sup…
Rat…
Cof…
ope…
exp…
as a 50.5 % 51.8 %
% of
com…
cof…
rev…
11
Channel Development
Sep Sep Sep Sep
27, 28, % 27, 28,
2026 2025 Chan… 2026 2025
──────────────────────────────────────────────────────────────────────────────
As a
% of
Qua… Chan…
End… Deve…
total
net
reve…
Net $ 494.4 $ 542.6 (8.9…
rev…
Pro…
and 299.5 343.9 -12.9 60.6 % 63.4 %
dis…
cos…
Oth…
ope… 14.3 16.6 -13.9 2.9 3.1
exp…
Gen…
and 0.6 1.0 -40.0 0.1 0.2
adm…
exp…
Res…
and — 0.8 nm 0.0 0.1
imp…
Tot…
ope… 314.4 362.3 -13.2 63.6 66.8
exp…
Inc…
from 84.3 84.9 -0.7 17.1 15.6
equ…
inv…
Ope… $ 264.3 $ 265.2 (0.3… 53.5 % 48.9 %
inc…
Year
End…
Net $ 2,17… $ 1,87… 16.1%
rev…
Pro…
and 1,34… 1,16… 15.0 61.8 % 62.4 %
dis…
cos…
Oth…
ope… 61.8 60.2 2.7 2.8 3.2
exp…
Gen…
and 3.4 5.8 -41.4 0.2 0.3
adm…
exp…
Res…
and -0.1 1.9 nm 0.0 0.1
imp…
Tot…
ope… 1,40… 1,23… 13.9 64.8 66.0
exp…
Inc…
from 252.0 249.6 1.0 11.6 13.3
equ…
inv…
Ope… $ 1,01… $ 885.1 14.8% 46.8 % 47.3 %
inc…
Corporate and Other
Sep 27, Sep 28, %
2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Quarter Ended
Net revenues $ 12.6 $ 54.0 -76.7 %
Product and distribution costs 12.4 41.7 -70.3
Other operating expenses 6.1 — nm
Depreciation and amortization 27.7 31.7 -12.6
expenses
General and administrative 393.2 436.4 -9.9
expenses
Restructuring and impairments 1.0 62.9 -98.4
Total operating expenses 440.4 572.7 -23.1
Operating loss $ -427.8 $ -518.7 -17.5 %
Year Ended
Net revenues $ 95.7 $ 119.7 -20.1 %
Product and distribution costs 91.8 111.4 -17.6
Other operating expenses 9.7 0.8 nm
Depreciation and amortization 121.2 124.5 -2.7
expenses
General and administrative 1,739.5 1,783.8 -2.5
expenses
Restructuring and impairments 103.9 154.4 -32.7
Total operating expenses 2,066.1 2,174.9 -5.0
Operating loss $ -1,970.4 $ -2,055.2 -4.1 %
12
STARBUCKS CORPORATION
CONSOLIDATED BALANCE SHEETS
(unaudited, in millions, except per share data)
Sep 27, Sep 28,
2026 2025
────────────────────────────────────────────────────────────────────────
ASSETS
Current assets:
Cash and cash equivalents $ 3,679.9 $ 3,219.8
Short-term investments 184.3 247.2
Accounts receivable, net 1,177.5 1,277.5
Inventories 2,243.4 2,185.6
Prepaid expenses and other current 386.3 452.2
assets
Total current assets 7,671.4 7,382.3
Long-term investments 309.5 246.9
Equity investments 1,784.1 466.2
Property, plant and equipment, net 6,944.1 8,493.5
Operating lease, right-of-use asset 7,858.9 9,315.7
Deferred income taxes, net 1,611.9 1,826.9
Other long-term assets 791.2 752.5
Other intangible assets 169.6 166.8
Goodwill 1,249.2 3,368.9
TOTAL ASSETS $ 28,389.9 $ 32,019.7
LIABILITIES AND SHAREHOLDERS’
EQUITY/(DEFICIT)
Current liabilities:
Accounts payable $ 1,868.5 $ 1,852.8
Accrued liabilities 2,752.3 2,359.7
Accrued payroll and benefits 891.3 1,093.9
Current portion of operating lease 1,344.3 1,564.5
liability
Stored value card liability and current 1,758.4 1,840.6
portion of deferred revenue
Current portion of long-term debt 1,499.0 1,498.9
Total current liabilities 10,113.8 10,210.4
Long-term debt 11,777.9 14,575.9
Operating lease liability 7,792.4 8,972.2
Deferred revenue 5,582.6 5,772.6
Other long-term liabilities 785.0 577.8
Total liabilities 36,051.7 40,108.9
Shareholders’ deficit:
Common stock ($0.001 par value) —
authorized, 2,400.0 shares; issued and 1.1 1.1
outstanding, 1,140.1 and 1,136.9 shares,
respectively
Additional paid-in-capital 1,000.4 634.1
Retained deficit -8,583.7 -8,272.5
Accumulated other comprehensive -86.9 -459.3
income/(loss)
Total shareholders’ deficit -7,669.1 -8,096.6
Noncontrolling interests 7.3 7.4
Total deficit -7,661.8 -8,089.2
TOTAL LIABILITIES AND SHAREHOLDERS’ $ 28,389.9 $ 32,019.7
EQUITY/(DEFICIT)
13
STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
Sep 27, Sep 28, Sep 29,
Year Ended 2026 2025 2024
──────────────────────────────────────────────────────────────────────────────
OPERATING ACTIVITIES:
Net earnings including
noncontrolling $ 2,526.1 $ 1,856.7 $ 3,762.3
interests
Adjustments to
reconcile net earnings
to
net cash provided by
operating
activities:
Depreciation and 1,595.0 1,771.5 1,592.4
amortization
Deferred income taxes, 144.4 -90.6 -13.8
net
Income earned from
equity method -297.7 -274.2 -306.4
investees, net
Distributions received
from equity 187.9 294.4 333.3
method investees
Net gain resulting
from divestiture of -536.3 — —
certain operations
Stock-based 368.6 318.3 308.3
compensation
Non-cash lease costs 1,303.0 1,513.8 1,314.9
Loss on disposal,
impairment, and 685.5 834.7 121.5
accelerated
amortization of assets
Other 4.8 17.3 31.9
Cash provided by/(used
in) changes in
operating assets and
liabilities:
Accounts receivable -2.6 -89.7 18.4
Inventories -176.4 -408.4 42.8
Income taxes payable 427.3 103.8 -61.9
Accounts payable 224.1 261.0 28.0
Deferred revenue -62.7 -120.7 -72.2
Operating lease -1,630.5 -1,576.7 -1,294.9
liability
Other operating assets 227.9 336.3 291.0
and liabilities
Net cash provided
by/(used in) operating 4,988.4 4,747.5 6,095.6
activities
INVESTING ACTIVITIES:
Purchases of -182.4 -333.6 -627.5
investments
Sales of investments 25.6 1.1 10.3
Maturities and calls 165.0 391.8 768.2
of investments
Additions to property,
plant and -1,263.6 -2,305.5 -2,777.5
equipment
Acquisitions, net of — -177.1 —
cash acquired
Net proceeds from the
divestiture of 2,544.2 — —
certain operations
Other -176.2 -62.1 -72.7
Net cash provided
by/(used in) investing 1,112.6 -2,485.4 -2,699.2
activities
FINANCING ACTIVITIES:
Net proceeds from
issuance of short-term 2.5 2.4 123.8
debt
Repayments of — -7.8 -157.5
short-term debt
Net proceeds from
issuance of long-term — 1,748.5 1,995.3
debt
Repayments of -2,815.9 -1,250.0 -1,825.1
long-term debt
Proceeds from issuance 66.4 77.0 108.0
of common stock
Cash dividends paid -2,824.7 -2,771.4 -2,585.0
Minimum tax
withholdings on -73.0 -87.4 -100.4
share-based
awards
Other — -9.3 -10.6
Net cash provided
by/(used in) financing -5,644.7 -2,298.0 -3,718.2
activities
Effect of exchange
rate changes on cash 3.8 -30.5 56.5
and cash equivalents
Net
increase/(decrease) in 460.1 -66.4 -265.3
cash and cash
equivalents
CASH AND CASH
EQUIVALENTS:
Beginning of period 3,219.8 3,286.2 3,551.5
End of period $ 3,679.9 $ 3,219.8 $ 3,286.2
SUPPLEMENTAL
DISCLOSURE OF CASH
FLOW
INFORMATION:
Cash paid during the
period for:
Interest, net of $ 603.0 $ 588.3 $ 570.7
capitalized interest
Income taxes $ 684.0 $ 715.6 $ 1,373.3
14
Supplemental Information
The following supplemental information is provided for historical and
comparative purposes.
U.S. Supplemental Data
Quarter Ended
($ in millions) Sep 27, 2026 Sep 28, 2025 Change (%)
──────────────────────────────────────────────────────────────────────────────
Net revenues $6,834.4 $6,429.0 6%
Change in Comparable
Coffeehouse 7.7% (0.3)%
Sales(1)
Change in Transactions 2.4% (0.9)%
Change in Ticket 5.2% 0.7%
Coffeehouse Count(2)(3) 16,781 16,864 —%
(1)Includes only Starbucks®
company-operated coffeehouses
open 13 months or longer.
Comparable coffeehouse sales
exclude Siren Retail
coffeehouses. Coffeehouses
that are temporarily closed
for fewer than three weeks or
operating at reduced hours
remain in comparable
coffeehouse sales while
coffeehouses identified for
permanent closures are
removed in the month
following closure.
(2)Includes 212 coffeehouses
closed in the quarter ended
September 27, 2026 as part of
our “Back to Starbucks”
fourth quarter of fiscal 2026
restructuring plan.
(3)Includes 19 and 520
coffeehouses closed in the
quarters ended September 27,
2026 and September 28, 2025,
respectively, as part of our
“Back to Starbucks” fourth
quarter of fiscal 2025
restructuring plan.
Coffeehouse Data
Net
cof…
ope…
and
tra…
dur…
the Cof…
per… Sep Sep Sep Sep open Sep Sep
Qua… 27, 28, Year 27, 28, as 27, 28,
End… 2026 2025 End… 2026 2025 of 2026 2025
──────────────────────────────────────────────────────────────────────────────
No…
Am…
Co… -247 -435 -116 -143 10,9… 11,…
co…
Li… 52 12 -19 30 7,274 7,2…
co…
To…
No… -195 -423 -135 -113 18,1… 18,…
Am…
In…
Co… 31 219 -8,… 639 2,495 10,…
co…
Li… 467 97 8,7… 265 20,9… 12,…
co…
To… 498 316 752 904 23,4… 22,…
In…
To… 303 -107 617 791 41,6… 40,…
Co…
(1) Includes 250 coffeehouses closed in the quarter and year ended September 27,
2026, as part of our “Back to Starbucks” fourth quarter of fiscal 2026
restructuring plan.
(2) Includes 19 and 266 coffeehouses closed in the quarter and year ended
September 27, 2026, respectively, as part of our “Back to Starbucks” fourth
quarter of fiscal 2025 restructuring plan.
(3) Includes 627 coffeehouses closed in the quarter and year ended September 28,
2025, as part of our “Back to Starbucks” fourth quarter of fiscal 2025
restructuring plan.
(4) Includes the conversion of 113 licensed coffeehouses to company-operated
coffeehouses following the acquisition of 23.5 Degrees Topco Limited during the
first quarter of fiscal 2025.
(5) Includes the conversion of 7,991 company-operated coffeehouses to licensed
coffeehouses following the divestiture of Starbucks retail operations in China
in the third quarter of fiscal 2026.
15
Non-GAAP Disclosure
In addition to the generally accepted accounting principles in the United States
(GAAP) results provided in this release, the company provides certain non-GAAP
financial measures in this release that are not in accordance with, or
alternatives for, GAAP. Our non-GAAP financial measures of non-GAAP general and
administrative expenses (G&A), non-GAAP operating income, non-GAAP operating
income growth (loss), non-GAAP operating margin, non-GAAP effective tax rate and
non-GAAP earnings per share exclude the below-listed items and their related tax
impacts, as management believes this exclusion contributes to a more meaningful
evaluation of the company ’ s future operating performance and comparisons to
the company's past operating performance. The GAAP measures most directly
comparable to non-GAAP G&A, non-GAAP operating income, non-GAAP operating income
growth (loss), non-GAAP operating margin, non-GAAP effective tax rate and non-
GAAP earnings per share are G&A, operating income, operating income growth
(loss), operating margin, effective tax rate and diluted net earnings per share,
respectively.
Non-GAAP Exclusion Rationale
Management excludes restructuring
and impairment costs relating to the
write-down of certain
Restructuring and impairment costs company-operated assets and employee
severance costs for the reasons
discussed above. These expenses are
anticipated to be completed within a
finite period of time.
Management excludes transaction and
transition costs for the reasons
Transaction and transition costs discussed above. These expenses are
anticipated to be completed within a
finite period of time.
Management excludes settlements that
are associated with litigation
events that are not expected to
Litigation settlements recur at a similar frequency and
magnitude in the future for the
reasons discussed above. The amounts
represent a cash settlement received
by the Company.
Management excludes transformation
costs that reflect temporary,
incremental third‑party professional
services incurred in connection with
Transformation costs a defined initiative to implement
changes to certain processes and
operating models. These expenses are
anticipated to be completed within a
finite period of time.
Net gain resulting from divestiture Management excludes the net gain
of resulting from the divestiture of
certain operations Starbucks retail operations in China
for the reasons discussed above.
The company also presents constant currency information to provide a framework
for assessing how our underlying businesses performed excluding the effect of
foreign currency rate fluctuations. To present the constant currency
information, including with respect to consolidated net revenues, operating
income, operating margin, and earnings per share, current period results for
entities reporting in currencies other than United States dollars are converted
into United States dollars using the average monthly exchange rates from the
comparative period rather than the actual exchange rates in effect during the
respective periods, excluding related hedging activities. We believe the
presentation of results on a constant currency basis in addition to GAAP results
helps users better understand our performance, because it excludes the effects
of foreign currency volatility that are not indicative of our underlying
operating results.
Non-GAAP G&A, non-GAAP operating income, non-GAAP operating income growth
(loss), non-GAAP operating margin, non-GAAP effective tax rate, non-GAAP
earnings per share, and constant currency may have limitations as analytical
tools. These measures should not be considered in isolation or as a substitute
for analysis of the company ’ s results as reported under GAAP. Other companies
may calculate these non-GAAP financial measures differently than the company
does, limiting the usefulness of those measures for comparative purposes.
The company is unable to provide a reconciliation of our Non-GAAP consolidated
operating margin guidance target to the corresponding GAAP financial measure
because the company believes that it would not be possible for it to have the
required information necessary to quantitatively reconcile such measures with
sufficient precision without unreasonable efforts.
16
STARBUCKS CORPORATION
NET REVENUE CONSTANT CURRENCY RECONCILIATION
(unaudited, in millions)
Quarter Ended
────────────────────────────────────────────────────────────────────
Consolidated
Revenue for the quarter ended Sep 28, $ 9,569.0
2025 as reported (GAAP)
Revenue for the quarter ended Sep 27, $ 9,141.2
2026 as reported (GAAP)
Change (%) -4.5 %
Constant Currency Impact (%) 0.6 %
Change in Constant Currency (%) -3.9 %
STARBUCKS CORPORATION
NET REVENUE CONSTANT CURRENCY RECONCILIATION
(unaudited, in millions)
Year Ended
──────────────────────────────────────────────────────────────────────
Consolidated
Revenue for the year ended Sep 28, 2025 $ 37,184.4
as reported (GAAP)
Revenue for the year ended Sep 27, 2026 $ 37,910.6
as reported (GAAP)
Change (%) 2.0 %
Constant Currency Impact (%) 0.1 %
Change in Constant Currency (%) 2.1 %
17
STARBUCKS CORPORATION
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(unaudited, in millions, except per share data)
Sep Sep Con…
Qua… 27, 28, Cur…
Cons… End… 2026 2025 Cha… Imp…
──────────────────────────────────────────────────────────────────────────────
Ope…
inc…
as $ 991.8 $ 278… 256.…
rep…
(GA…
Res…
and 272.8 755…
imp…
Tra…
and 5.5 8.2
tra…
cos…
Tra… 6.8 —
cos…
Lit… — -14…
set…
Non…
ope… $ 1,27… $ 896… 42.5% 0.5% 43.0%
inc…
Ope…
mar… 790
as 10.8 % 2.9 % bps
rep…
(GA…
Res…
and 3.0 7.9
imp…
Tra…
and 0.1 0.1
tra…
cos…
Tra… 0.1 —
cos…
Lit… — -1.5
set…
Non… 460 (10) 450
ope… 14.0 % 9.4 % bps bps bps
mar…
Dil…
net
ear…
per $ 0.59 $ 0.12 391.…
sha…
as
rep…
(GA…
Res…
and 0.24 0.66
imp…
Tra…
and — 0.01
tra…
cos…
Tra… 0.01 —
cos…
Lit… — -0.…
set…
Inc…
tax
eff… -0.04 -0.…
on
Non…
adj…
Non…
dil…
net $ 0.80 $ 0.52 53.8% —% 53.8%
ear…
per
sha…
(1) Certain numbers may not foot due to rounding convention.
(2) Represents costs associated with our restructuring efforts.
(3) Represents transaction and transition-related expenses related to the
strategic partnership with Boyu Capital to operate Starbucks retail in China.
(4) Represents transformation costs to support the further optimization of our
global support organization.
(5) Related to settlements associated with litigation events that are not
expected to recur at a similar frequency and magnitude in the future.
(6) Adjustments were determined based on the nature of the underlying items and
their relevant jurisdictional tax rates.
18
Sep Sep Con…
Year 27, 28, Cur…
Con… End… 2026 2025 Cha… Imp…
──────────────────────────────────────────────────────────────────────────────
Op…
in…
as $ 3,6… $ 2,9… 25.…
re…
(G…
Re…
and 688… 892…
im…
co…
Tr…
and 79.3 8.2
tr…
co…
Tr… 53.7 —
co…
Li… — -14…
se…
No…
op… $ 4,5… $ 3,6… 22.… 0.1% 22.…
in…
Op…
ma… 180
as 9.7 % 7.9 % bps
re…
(G…
Re…
and 1.8 2.4
im…
co…
Tr…
and 0.2 —
tr…
co…
Tr… 0.1 —
co…
Li… — -0.4
se…
No… 200 — 200
op… 11.9 % 9.9 % bps bps bps
ma…
Di…
net
ea…
per $ 2.21 $ 1.63 35.…
sh…
as
re…
(G…
Re…
and 0.60 0.78
im…
co…
Tr…
and 0.07 0.01
tr…
co…
Tr… 0.05 —
co…
Li… — -0.…
se…
Net
ga…
re…
fr… -0.… —
di…
of
ce…
op…
In…
tax
im…
fr…
ch… 0.24 —
in
in…
re…
as…
In…
tax
ef… 0.02 -0.…
on
No…
ad…
No… $ 2.72 $ 2.13 27.… (0.… 27.…
EPS
(1) Certain numbers may not foot due to rounding convention.
(2) Represents costs associated with our restructuring efforts.
(3) Represents transaction and transition-related expenses related to the
strategic partnership with Boyu Capital to operate Starbucks retail in China.
(4) Represents transformation costs to support the further optimization of our
global support organization.
(5) Related to settlements associated with litigation events that are not
expected to recur at a similar frequency and magnitude in the future.
(6) Represents the net gain resulting from the divestiture of Starbucks retail
operations in China during the third quarter of fiscal 2026.
(7) Represents the impact from changes in indefinite reinvestment assertions as
a result of classifying our Starbucks retail operations in China as held for
sale in the first quarter of fiscal 2026.
(8) Adjustments were determined based on the nature of the underlying items and
their relevant jurisdictional tax rates.
19
Quarter Sep 27, Sep 28,
Consoli… Ended 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Effect…
tax 27.1 % 18.8 % 830 bps
rate
(GAAP)
Income
tax
effect -2.4 % 4.9 %
on
Non-GA…
adjust…
Non-GA…
effect… 24.7 % 23.7 % 100 bps
tax
rate
(1) Adjustments were determined based on the nature of the underlying items and
their relevant jurisdictional tax rates.
Year Sep 27, Sep 28,
Consoli… Ended 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Effect…
tax 34.2 % 25.9 % 830 bps
rate
(GAAP)
Income
tax
effect -9.4 % -0.2 %
on
Non-GA…
adjust…
Non-GA…
effect… 24.8 % 25.7 % (90)
tax bps
rate
(1) Adjustments were determined based on the nature of the underlying items and
their relevant jurisdictional tax rates.
20
Q4 QTD FY26 NON-GAAP DISCLOSURE DETAILS
(unaudited, in millions, and before income taxes)
Q4
QTD
FY26
Sta…
of
Ear…
Line
Item
Res… Corp…
and North Cha… and
imp… Amer… Inte… Dev… Other Con…
──────────────────────────────────────────────────────────────────────────────
Res…
and $ 270.2 $ 1.6 $ 1.0 $ 272.8
imp…
cos…
Gen…
and
adm…
exp…
Tra…
and $ 5.5 $ 5.5
tra…
cos…
Tra… $ 0.6 $ 0.2 $ 3.4 $ 4.2
cos…
Oth…
ope…
exp…
Tra… $ 2.6 $ 2.6
cos…
Tot…
imp…
to $ -270… $ -4.4 $ — $ -9.9 $ -285…
ope…
inc…
(1) Represents costs associated with our restructuring efforts.
(2) Represents transaction and transition-related expenses related to the
strategic partnership with Boyu Capital to operate Starbucks retail in China.
(3) Represents transformation costs to support the further optimization of our
global support organization.
Q4 YTD FY26 NON-GAAP DISCLOSURE DETAILS
(unaudited, in millions, and before income taxes)
Q4
YTD
FY…
St…
of
Ea…
Li…
It…
Re… Cor…
and Nor… Chan… and
im… Ame… Int… Deve… Oth… Con…
──────────────────────────────────────────────────────────────────────────────
Re…
and $ 489… $ 95.0 $ -0.1 $ 103.9 $ 688.6
im…
co…
Ge…
and
ad…
ex…
Tr…
and $ 5.4 $ 73.9 $ 79.3
tr…
co…
Tr… $ 6.3 $ 8.8 $ 15.2 $ 30.3
co…
Pr…
and
di…
co…
Tr… $ 18.3 $ 18.3
co…
Ot…
op…
ex…
Tr… $ 5.1 $ 5.1
co…
To…
im…
to $ -51… $ -11… $ 0.1 $ -193… $ -821…
op…
in…
(1) Represents costs associated with our restructuring efforts.
(2) Represents transaction and transition-related expenses related to the
strategic partnership with Boyu Capital to operate Starbucks retail in China.
(3) Represents transformation costs to support the further optimization of our
global support organization.
21
STARBUCKS CORPORATION
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(unaudited)
Year Ended
Sep 26,
Consolidated 2027
──────────────────────────────────────────────────────────────────────────────
-Projected 53-weeks
Diluted net earnings per $ 3.07 - 3.17
share (GAAP)
Restructuring and 0.13
impairments
Income tax effect on
Non-GAAP -0.05
adjustments
Non-GAAP net earnings per $ 3.15 - 3.25
share