STARBUCKS CORP
For the period ended Jun 29, 2025. Filed Jul 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 29, 2025 · Filed Jul 29, 2025
SBUX$105.41-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-30; filed 2025-04-29.
0000829224-25-000034
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-29; filed 2025-07-29.
0000829224-25-000058
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 134 previous paragraphs and 140 current paragraphs.
71 unchanged; 53 reworded; 14 added; 8 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
• 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, or entry into joint ventures;
Current report
For the balance of this fiscal year, we expect that the macroeconomic challenges we have been experiencing, including impacts from new tariffs and volatile coffee prices, will continue; however we are encouraged by the results we have seen from our “Back to Starbucks” initiatives and early results from our pilots. For example, as a result of compelling early insights, we have decided to accelerate the rollout of the Green Apron Service model, a new foundational operating model that establishes repeatable, consistent, and scalable standards, across U.S. company-operated stores in the next few months. We will continue to prioritize disciplined capital investments in our stores, and we are conducting a comprehensive evaluation of our store portfolio, which we expect will be complete by the end of the fiscal year and result in additional material restructuring charges. Additionally, we will continue our efforts to identify a strategic partner with a similar vision and values to help us capture future growth opportunities in China. Our focus will continue to be on the long-term, sustainable growth of the company. We believe the actions we are taking now and in the future, specifically through our investments in store partners, uplifting the coffeehouse experience, introducing new food and beverage platforms, and reimagining the Starbucks rewards program, paired with disciplined prioritization, while driving more efficiency, accountability, and agility as a company, will lay the foundation for the future of Starbucks.
Current report
Other revenues increased $69 million, primarily due to an increase in revenue in the Global Coffee Alliance ($45 million) and increased sales of cocoa butter to third parties ($20 million).
Current report
Other revenues increased $72 million, primarily due to increased sales of cocoa butter to third parties ($34 million) and an increase in revenue in the Global Coffee Alliance ($27 million).
Current report
Other operating expenses increased $8 million, primarily due to support costs for our licensed markets.
Current report
General and administrative expenses increased $101 million, primarily due to the Leadership Experience 2025 ($81 million).
Current report
Other operating expenses increased $16 million, primarily due to support costs for our licensed markets.
Current report
General and administrative expenses increased $97 million, primarily due to the Leadership Experience 2025 ($81 million).
Current report
North America operating income for the third quarter of fiscal 2025 decreased 36% to $919 million, compared to $1.4 billion in the third quarter of fiscal 2024. Operating margin contracted 770 basis points to 13.3%, primarily driven by deleverage (approximately 250 basis points), investments in support of “Back to Starbucks,” including additional labor (approximately 170 basis points) and the Leadership Experience 2025 (approximately 120 basis points), and inflation (approximately 110 basis points), primarily driven by elevated coffee pricing.
Current report
North America operating income for the first three quarters of fiscal 2025 decreased 31% to $2.8 billion, compared to $4.1 billion in the first three quarters of fiscal 2024. Operating margin contracted 630 basis points to 13.9%, primarily driven by deleverage (approximately 320 basis points), additional labor (approximately 180 basis points), and inflation (approximately 70 basis points).
Current report
Channel Development operating income for the third quarter of fiscal 2025 decreased 7% to $218 million, compared to $235 million in the third quarter of fiscal 2024. Operating margin contracted 860 basis points to 45.1%, primarily driven by a decline in our North American Coffee Partnership joint venture income (approximately 420 basis points), mix shift (approximately 270 basis points), and higher global product costs (approximately 250 basis points).
Current report
Channel Development total net revenues for the first three quarters of fiscal 2025 increased $25 million, or 2%, primarily due to an increase in revenue in the Global Coffee Alliance ($27 million).
Current report
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.
Current report
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 will be included in our fourth quarter of fiscal 2025 results. We are evaluating the impacts of this tax law change; however, it is not expected to result in a material impact to our consolidated financial statements.
Removed paragraphs (8)
Previous report
We expect that the balance of this fiscal year will bring some challenges as we navigate a dynamic macroeconomic environment, including tariffs and volatile coffee prices. In each case, we are actively monitoring and taking actions where necessary to mitigate potential financial impacts, including further diversifying and redirecting coffee shipments to minimize tariffs, and, with respect to shifting coffee prices, opportunistically building our supply and securing pricing. We are also evaluating our global store portfolio, new store pipeline, and operations, which may result in additional restructuring charges in the near term. Going forward, we will focus on greater new store returns and enhancing the coffeehouse experience for both our partners and customers, while also reducing new store build costs. Despite the challenging macroeconomic environment, we continue to feel confident in our “Back to Starbucks” strategy and will continue making intentional investments to stabilize the business and return to long-term, profitable growth.
Previous report
General and administrative expenses decreased $22 million, primarily due to lapping certain proxy solicitation and advisory services costs ($30 million).
Previous report
General and administrative expenses decreased $5 million, primarily due to lapping certain proxy solicitation and advisory services costs ($30 million), partially offset by increased costs to support leadership transitions ($22 million).
Previous report
(approximately 200 basis points), partially offset by lapping the election of an alternative tax approach in a certain foreign jurisdiction that resulted in a tax benefit in the second quarter of fiscal 2024 (approximately 130 basis points).
Previous report
North America operating income for the second quarter of fiscal 2025 decreased 35% to $748 million, compared to $1.1 billion in the second quarter of fiscal 2024. Operating margin contracted 640 basis points to 11.6%, primarily driven by deleverage (approximately 300 basis points) and additional labor, largely in support of “Back to Starbucks” (approximately 230 basis points).
Previous report
North America operating income for the first two quarters of fiscal 2025 decreased 28% to $1.9 billion, compared to $2.7 billion in the first two quarters of fiscal 2024. Operating margin contracted 560 basis points to 14.2%, primarily driven by deleverage (approximately 330 basis points) and additional labor, largely in support of “Back to Starbucks” (approximately 190 basis points).
Previous report
Channel Development operating income for the second quarter of fiscal 2025 decreased 11% to $194 million, compared to $216 million in the second quarter of fiscal 2024. Operating margin contracted 440 basis points to 47.3%, primarily driven by higher product costs related to the Global Coffee Alliance (approximately 390 basis points) and a decline in our North American Coffee Partnership joint venture income (approximately 170 basis points), partially offset by mix shift (approximately 160 basis points).
Previous report
Channel Development total net revenues for the first two quarters of fiscal 2025 decreased $21 million, or 2%, primarily due to a decline in revenue in the Global Coffee Alliance ($18 million) and decreased ingredient sales to our North American Coffee Partnership joint venture ($10 million), partially offset by higher revenue in our global ready-to-drink business ($12 million).
Reworded paragraphs (53)
Previous wording
• the costs and risks associated with, and the successful execution and effects of, our existing and any future business opportunities, expansions, initiatives, strategies, investments, and plans, including our“Back to Starbucks” plan;
Current wording
• the costs and risks associated with, and the successful and timely execution and effects of, our existing and any future business opportunities, expansions, initiatives, strategies, investments, and plans, including our“Back to Starbucks” plan;
Previous wording
• inherent risks of operating a global business, including changing conditions in our markets, local factors affecting store openings, protectionist trade or foreign investment policies, such as tariffs and other trade controls, economic or trade sanctions, compliance with local laws and other regulations, and local labor policies and conditions, including labor strikes and work stoppages;
Current wording
• inherent risks of operating a global business, including changing conditions in our markets, local factors affecting store openings, protectionist trade or foreign investment policies, such as imposed or threatened to be imposed tariffs and other trade controls, economic or trade sanctions, compliance with local laws and other regulations, and local labor policies and conditions, including labor strikes and work stoppages;
Previous wording
• failure to attract or retain key executive or partner talent or successfully transition executives;
Current wording
• failure to attract or retain key executive or partner talent or successfully onboard or transition executives;
Previous wording
• the impacts of partner investments and changes in the availability and cost of labor, including any union organizing efforts and our responses to such efforts;
Current wording
• the impacts of partner investments, business transformation initiatives, including those related to our workforce, and changes in the availability and cost of labor, including any union organizing efforts and our responses to such efforts;
Previous wording
Starbucks is the premier roaster, marketer, and retailer of specialty coffee globally, with a presence in 88 markets worldwide. As of March 30, 2025, Starbucks had more than 40,700 company-operated and licensed stores, an increase of 5% from the prior year. Additionally, we sell a variety of consumer-packaged goods, primarily through the Global Coffee Alliance established with Nestlé and other partnerships and joint ventures.
Current wording
Starbucks is the premier roaster, marketer, and retailer of specialty coffee globally, with a presence in 88 markets worldwide. As of June 29, 2025, Starbucks had more than 41,000 company-operated and licensed stores, an increase of 4% from the prior year. Additionally, we sell a variety of consumer-packaged goods, primarily through the Global Coffee Alliance established with Nestlé and other partnerships and joint ventures.
Previous wording
Starbucks results for the second quarter of fiscal 2025 showed continued early progress on our “Back to Starbucks” strategy, as we focus on future growth and stronger returns on invested capital. During the second quarter of fiscal 2025, consolidated net revenues increased 2% to $8.8 billion compared to $8.6 billion in the second quarter of fiscal 2024, primarily driven by incremental revenues from net new company-operated store openings over the past 12 months, partially offset by unfavorable foreign currency translation impacts and a decrease in global comparable store sales. During the quarter ended March 30, 2025, our global comparable store sales declined 1%, primarily driven by a 2% decline in the U.S. market, partially offset by a 2% improvement internationally. Specific to the U.S. market, the decrease in comparable store sales was driven by a 4% decrease in comparable transactions, partially offset by a 3% increase in average ticket, primarily due to annualization of pricing and fewer discounts in the current year. Consolidated operating margin contracted 590 basis points from the prior year to 6.9%, primarily driven by deleverage, additional labor, largely in support of “Back to Starbucks,” and restructuring costs related to simplifying our global support organization.
Current wording
Starbucks results for the third quarter of fiscal 2025 showed continued progress on key “Back to Starbucks” initiatives, specifically investments in coffeehouse partners, including the Leadership Experience 2025, a conference designed to empower and motivate our retail leaders to accelerate our “Back to Starbucks” strategy, as we work to rebuild a stronger Starbucks. During the third quarter of fiscal 2025, consolidated net revenues increased 4% to $9.5 billion compared to $9.1 billion in the third quarter of fiscal 2024, primarily driven by incremental revenues from net new company-operated store openings over the past 12 months, partially offset by a decrease in global comparable store sales. During the quarter ended June 29, 2025, our global comparable store sales declined 2%, primarily driven by a 2% decline in the U.S. market. Specific to the U.S. market, the decrease in comparable store sales was driven by a 4% decrease in comparable transactions, partially offset by a 2% increase in average ticket, primarily due to fewer discounts in the current year. Consolidated operating margin contracted 680 basis points from the prior year to 9.9%, primarily driven by deleverage, investments in support of “Back to Starbucks,” including additional labor and the Leadership Experience 2025, and inflation, primarily driven by elevated coffee pricing.
Previous wording
Total net revenues for the second quarter of fiscal 2025 increased $199 million, primarily due to higher revenues from company-operated stores ($232 million), partially offset by a decrease in revenues from licensed stores ($39 million).
Current wording
Total net revenues for the third quarter of fiscal 2025 increased $342 million, primarily due to higher revenues from company-operated stores ($297 million) and other revenues ($69 million), partially offset by a decrease in revenues from licensed stores ($23 million).
Previous wording
Company-operated store revenue increased $232 million, primarily driven by incremental revenues from 1,283 net new company-operated stores, or a 6% increase, over the past 12 months ($296 million), and incremental revenue from the conversion of 113 licensed stores to company-operated stores ($30 million) following the acquisition of 23.5 Degrees Topco Limited, a U.K. licensed business partner, during the first quarter of fiscal 2025. These increases in net revenue were partially offset by a 1% decrease in comparable store sales ($49 million), attributable to a 2% decrease in comparable transactions, partially offset by a 1% increase in average ticket, as well as unfavorable foreign currency translation impacts ($48 million).
Current wording
Company-operated store revenue increased $297 million, primarily driven by incremental revenues from 1,151 net new company-operated stores, or a 6% increase, over the past 12 months ($330 million). Also contributing to the overall increase in company-operated store revenue were favorable foreign currency translation impacts ($45 million) and incremental revenue from the conversion of 113 licensed stores to company-operated stores ($36 million) following the acquisition of 23.5 Degrees Topco Limited, a U.K. licensed business partner, during the first quarter of fiscal 2025. These increases in net revenue were partially offset by a 2% decrease in comparable store sales ($122 million), attributable to a 2% decrease in comparable transactions, partially offset by a 1% increase in average ticket.
Previous wording
Licensed stores revenue decreased $39 million, primarily driven by lower product and equipment sales to, and royalty revenues from, our licensees in our North America segment ($40 million), unfavorable foreign currency translation impacts ($11 million), and the impact of the acquisition of 23.5 Degrees Topco Limited ($8 million). These decreases in licensed stores revenue were partially offset by an increase in product sales to, and royalty revenues from, our licensees in our International segment ($25 million).
Current wording
Licensed stores revenue decreased $23 million, primarily driven by lower product and equipment sales to, and royalty revenues from, our licensees in our North America segment ($37 million) and the impact of the acquisition of 23.5 Degrees Topco Limited ($9 million). These decreases in licensed stores revenue were partially offset by an increase in product and equipment sales to, and royalty revenues from, our licensees in our International segment ($28 million).
Previous wording
Total net revenues for the first two quarters of fiscal 2025 increased $171 million, primarily due to higher revenues from company-operated stores ($262 million), partially offset by a decrease in revenues from licensed stores ($95 million).
Current wording
Total net revenues for the first three quarters of fiscal 2025 increased $513 million, primarily due to higher revenues from company-operated stores ($559 million) and other revenues ($72 million), partially offset by a decrease in revenues from licensed stores ($118 million).
Previous wording
Company-operated store revenue increased $262 million, primarily driven by incremental revenues from 1,283 net new company-operated stores, or a 6% increase, over the past 12 months ($598 million) and incremental revenue from the conversion of 113 licensed stores to company-operated stores ($57 million) following the acquisition of 23.5 Degrees Topco Limited. These increases in net revenue were partially offset by a 2% decrease in comparable store sales ($331 million), attributable to a 4% decrease in comparable transactions, partially offset by a 2% increase in average ticket, as well as unfavorable foreign currency translation impacts ($66 million).
Current wording
Company-operated store revenue increased $559 million, primarily driven by incremental revenues from 1,151 net new company-operated stores, or a 6% increase, over the past 12 months ($927 million) and incremental revenue from the conversion of 113 licensed stores to company-operated stores ($93 million) following the acquisition of 23.5 Degrees Topco Limited. These increases in net revenue were partially offset by a 2% decrease in comparable store sales ($453 million), attributable to a 4% decrease in comparable transactions, partially offset by a 2% increase in average ticket.
Previous wording
Licensed stores revenue decreased $95 million, primarily driven by lower product and equipment sales to, and royalty revenues from, our licensees in our North America segment ($74 million), unfavorable foreign currency translation impacts ($20 million), and the impact of the acquisition of 23.5 Degrees Topco Limited ($17 million). These decreases in licensed stores revenue were partially offset by an increase in product sales to, and royalty revenues from, our licensees in our International segment ($22 million).
Current wording
Licensed stores revenue decreased $118 million, primarily driven by lower product and equipment sales to, and royalty revenues from, our licensees in our North America segment ($112 million), the impact of the acquisition of 23.5 Degrees Topco Limited ($26 million), and by unfavorable foreign currency translation impacts ($22 million). These decreases were partially offset by an increase in product and equipment sales to, and royalty revenues from, our licensees in our International segment ($49 million).
Previous wording
Product and distribution costs as a percentage of total net revenues increased 30 basis points for the second quarter of fiscal 2025, primarily due to inflation and rising coffee prices (approximately 60 basis points), partially offset by supply chain efficiencies (approximately 50 basis points).
Current wording
Product and distribution costs as a percentage of total net revenues increased 120 basis points for the third quarter of fiscal 2025, largely due to inflation (approximately 100 basis points), primarily driven by elevated coffee pricing.
Previous wording
Store operating expenses as a percentage of total net revenues increased 420 basis points for the second quarter of fiscal 2025. Store operating expenses as a percentage of company-operated stores revenue increased 450 basis points, primarily due to deleverage (approximately 200 basis points) and additional labor, largely in support of “Back to Starbucks” (approximately 180 basis points).
Current wording
Store operating expenses as a percentage of total net revenues increased 390 basis points for the third quarter of fiscal 2025. Store operating expenses as a percentage of company-operated stores revenue increased 470 basis points, primarily due to additional labor (approximately 160 basis points), deleverage (approximately 150 basis points), and increased marketing (approximately 90 basis points).
Previous wording
Depreciation and amortization expenses as a percentage of total net revenues increased 50 basis points, primarily due to deleverage.
Current wording
Depreciation and amortization expenses as a percentage of total net revenues increased 30 basis points, primarily due to deleverage.
Previous wording
Restructuring was $116 million, largely due to costs associated with simplifying our support organization, primarily severance costs, in support of our “Back to Starbucks” strategy.
Current wording
Restructuring was $21 million, largely due to costs associated with simplifying our support organization, primarily severance costs, in support of our “Back to Starbucks” strategy.
Previous wording
Income from equity investees decreased $18 million, primarily due to lower income from our North American Coffee Partnership joint venture.
Current wording
Income from equity investees decreased $17 million, primarily due to lower income from our North American Coffee Partnership joint venture.
Previous wording
The combination of these changes resulted in an overall decrease in operating margin of 590 basis points for the second quarter of fiscal 2025.
Current wording
The combination of these changes resulted in an overall decrease in operating margin of 680 basis points for the third quarter of fiscal 2025.
Previous wording
Product and distribution costs as a percentage of total net revenues decreased 30 basis points for the first two quarters of fiscal 2025, primarily due to supply chain efficiencies (approximately 60 basis points), partially offset by inflation and rising coffee prices (approximately 50 basis points).
Current wording
Product and distribution costs as a percentage of total net revenues increased 20 basis points for the first three quarters of fiscal 2025, primarily due to inflation (approximately 70 basis points), partially offset by supply chain efficiencies (approximately 50 basis points).
Previous wording
Store operating expenses as a percentage of total net revenues increased 400 basis points for the first two quarters of fiscal 2025. Store operating expenses as a percentage of company-operated stores revenue increased 440 basis points, primarily due to deleverage (approximately 230 basis points) and additional labor, largely in support of “Back to Starbucks” (approximately 160 basis points).
Current wording
Store operating expenses as a percentage of total net revenues increased 400 basis points for the first three quarters of fiscal 2025. Store operating expenses as a percentage of company-operated stores revenue increased 450 basis points, primarily due to deleverage (approximately 200 basis points), additional labor (approximately 160 basis points), and increased marketing (approximately 90 basis points).
Previous wording
Restructuring was $116 million, largely due to costs associated with simplifying our support organization, primarily severance costs, in support of our “Back to Starbucks” strategy.
Current wording
Restructuring was $137 million, largely due to costs associated with simplifying our support organization, primarily severance costs, in support of our “Back to Starbucks” strategy.
Previous wording
The combination of these changes resulted in an overall decrease in operating margin of 490 basis points for the first two quarters of fiscal 2025.
Current wording
The combination of these changes resulted in an overall decrease in operating margin of 550 basis points for the first three quarters of fiscal 2025.
Previous wording
The effective tax rate for the quarter ended March 30, 2025 was 23.5% compared to 22.2% for the same period in fiscal 2024. The increase was primarily due to lapping the election of an alternative tax approach in a certain foreign jurisdiction that resulted in a tax benefit in the second quarter of fiscal 2024 (approximately 300 basis points), partially offset by the effect of lower pre-tax earnings and the proportionate impacts from certain permanent differences and discrete items.
Current wording
The effective tax rate for the quarter ended June 29, 2025 was 31.8% compared to 24.8% for the same period in fiscal 2024. The increase was primarily due to the discrete impact of changes in indefinite reinvestment assertions for certain foreign entities in the third quarter of fiscal 2025 (approximately 850 basis points).
Previous wording
Interest income and other, net, decreased $6 million, primarily due to lower interest rates in the current year.
Current wording
Interest income and other, net, decreased $14 million, primarily due to lower cash balances and lower interest rates in the current year.
Previous wording
Interest expense decreased $13 million, primarily due to savings from cross-currency interest rate hedging, partially offset by higher interest rates on refinanced long-term debt.
Current wording
Interest expense decreased $25 million, primarily due to savings from cross-currency interest rate hedging, partially offset by higher interest rates on refinanced long-term debt.
Previous wording
The effective tax rate for the first two quarters ended March 30, 2025 was 23.6% compared to 24.2% for the same period in fiscal 2024. The decrease was primarily due to the discrete impact of a tax status change for a certain foreign entity
Current wording
The effective tax rate for the first three quarters ended June 29, 2025 was 26.5% compared to 24.4% for the same period in fiscal 2024. The increase was primarily due to the discrete impact of changes in indefinite reinvestment assertions for certain foreign entities in the third quarter of fiscal 2025 (approximately 300 basis points), partially offset by the discrete impact of a tax status change for a certain foreign entity (approximately 130 basis points).
Previous wording
North America total net revenues for the second quarter of fiscal 2025 increased $93 million, or 1%, primarily driven by net new company-operated store growth of 5%, or 504 stores, over the past 12 months ($226 million). This growth was partially offset by a net 1% decrease in comparable store sales ($70 million), driven by a 4% decrease in comparable transactions, partially offset by a 3% increase in average ticket, primarily due to annualization of prior year pricing and fewer discounts in the current year. Also contributing were lower product and equipment sales to, and royalty revenues from, our licensees ($40 million).
Current wording
North America total net revenues for the third quarter of fiscal 2025 increased $110 million, or 2%, primarily driven by net new company-operated store growth of 5%, or 513 stores, over the past 12 months ($266 million). This growth was partially offset by a net 2% decrease in comparable store sales ($116 million), driven by a 3% decrease in comparable transactions, partially offset by a 1% increase in average ticket, primarily due to fewer discounts in the current year. Also contributing were lower product and equipment sales to, and royalty revenues from, our licensees ($37 million).
Previous wording
North America total net revenues for the first two quarters of fiscal 2025 increased $44 million primarily driven by net new company-operated store growth 5%, or 504 stores, over the past 12 months ($456 million). This growth was partially offset by a a net 3% decrease in comparable store sales ($304 million) driven by a 6% decrease in comparable transactions, partially offset by a 3% increase in average ticket, primarily due to annualization of prior year pricing and fewer discounts in the current year. Also contributing were lower product and equipment sales to, and royalty revenues from, our licensees ($74 million).
Current wording
North America total net revenues for the first three quarters of fiscal 2025 increased $154 million, or 1%, primarily driven by net new company-operated store growth 5%, or 513 stores, over the past 12 months ($722 million). This growth was partially offset by a net 2% decrease in comparable store sales ($420 million) driven by a 5% decrease in comparable transactions, partially offset by a 3% increase in average ticket, primarily due to annualization of prior year pricing and fewer discounts in the current year. Also contributing were lower product and equipment sales to, and royalty revenues from, our licensees ($112 million).
Previous wording
International total net revenues for the second quarter of fiscal 2025 increased $110 million, or 6%, primarily due to net new company-operated store growth of 8%, or 779 stores, over the past 12 months ($70 million) and higher product sales to, and royalty revenues from, our licensees ($25 million), primarily due to the opening of 497 net new licensed stores over the past 12 months. Also contributing to the increase in revenues was the incremental net revenue from the conversion of 113 licensed stores to company-operated stores ($22 million) following the acquisition of 23.5 Degrees Topco Limited, a U.K. licensed business partner, during the first quarter of fiscal 2025, in addition to a 2% increase in comparable stores sales ($21 million), driven by a 3% increase in comparable transactions, partially offset by a 1% decrease in average ticket. These increases were partially offset by unfavorable foreign currency translation impacts ($39 million).
Current wording
International total net revenues for the third quarter of fiscal 2025 increased $169 million, or 9%, primarily due to net new company-operated store growth of 7%, or 638 stores, over the past 12 months ($63 million), favorable foreign currency translation impacts ($48 million), and higher product and equipment sales to, and royalty revenues from, our licensees ($28 million), primarily due to the opening of 446 net new licensed stores over the past 12 months. Also contributing to the increase in revenues was the incremental net revenue from the conversion of 113 licensed stores to company-operated stores ($27 million) following the acquisition of 23.5 Degrees Topco Limited, a U.K. licensed business partner, during the first quarter of fiscal 2025. International comparable store sales were flat, driven by a 1% increase in comparable transactions, offset by a 1% decrease in average ticket.
Previous wording
International operating income for the second quarter of fiscal 2025 decreased 7% to $217 million, compared to $234 million in the second quarter of fiscal 2024. Operating margin contracted 170 basis points to 11.6%, primarily due to increased promotional activity (approximately 200 basis points) and restructuring costs (approximately 90 basis points), partially offset by leverage (approximately 170 basis points).
Current wording
International operating income for the third quarter of fiscal 2025 decreased 5% to $273 million, compared to $288 million in the third quarter of fiscal 2024. Operating margin contracted 200 basis points to 13.6%, primarily due to increased promotional activity (approximately 160 basis points).
Previous wording
International total net revenues for the first two quarters of fiscal 2025 increased $135 million, or 4%, primarily due to net new company-operated store growth of 8%, or 779 stores, over the past 12 months ($142 million), and the incremental net revenue from the conversion of 113 licensed stores to company-operated stores ($41 million) following the acquisition of 23.5 Degrees Topco Limited during the first quarter of fiscal 2025. Also contributing to the increase in revenues were higher product sales to, and royalty revenues from, our licensees ($22 million), primarily due to the opening of 497 net new licensed stores over the past 12 months. These increases were partially offset by unfavorable foreign currency translation impacts ($55 million), as well as a 1% decrease in comparable store sales ($27 million), driven by a 2% decrease in average ticket, partially offset by a 1% increase in comparable transactions.
Current wording
International total net revenues for the first three quarters of fiscal 2025 increased $304 million, or 6%, primarily due to net new company-operated store growth of 7%, or 638 stores, over the past 12 months ($205 million), and the incremental net revenue from the conversion of 113 licensed stores to company-operated stores ($67 million) following the acquisition of 23.5 Degrees Topco Limited during the first quarter of fiscal 2025. Also contributing to the increase in revenues were higher product and equipment sales to, and royalty revenues from, our licensees ($49 million), primarily due to the opening of 446 net new licensed stores over the past 12 months. These increases were partially offset by a 1% decrease in comparable store sales ($33 million), driven by a 2% decrease in average ticket, partially offset by a 1% increase in comparable transactions.
Previous wording
International operating income for the first two quarters of fiscal 2025 decreased 4% to $454 million, compared to $475 million in the first two quarters of fiscal 2024. Operating margin contracted 110 basis points to 12.1%, primarily due to increased promotional activity (approximately 190 basis points), partially offset by leverage (approximately 80 basis points).
Current wording
International operating income for the first three quarters of fiscal 2025 decreased 5% to $727 million, compared to $763 million in the first three quarters of fiscal 2024. Operating margin contracted 140 basis points to 12.6%, primarily due to increased promotional activity (approximately 180 basis points).
Previous wording
Channel Development total net revenues for the second quarter of fiscal 2025 decreased $9 million, or 2%, primarily due to a decline in revenue in the Global Coffee Alliance ($11 million), partially offset by higher revenue in our global ready-to-drink business ($5 million).
Current wording
Channel Development total net revenues for the third quarter of fiscal 2025 increased $46 million, or 10%, primarily due to an increase in revenue in the Global Coffee Alliance ($45 million).
Previous wording
Channel Development operating income for the first two quarters of fiscal 2025 decreased 6% to $402 million, compared to $426 million in the first two quarters of fiscal 2024. Operating margin contracted 170 basis points to 47.5%, primarily driven by a decline in our North American Coffee Partnership joint venture income.
Current wording
Channel Development operating income for the first three quarters of fiscal 2025 decreased 6% to $620 million, compared to $661 million in the first three quarters of fiscal 2024. Operating margin contracted 410 basis points to 46.6%, primarily driven by a decline in our North American Coffee Partnership joint venture income (approximately 250 basis points) and higher global product costs (approximately 180 basis points).
Previous wording
Corporate and Other primarily consists of our unallocated corporate expenses. Unallocated corporate expenses include corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment and are not included in the reported financial results of the operating segments.
Current wording
Corporate and Other primarily consists of our unallocated corporate expenses and sales of cocoa butter to third parties. Unallocated corporate expenses include corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment and are not included in the reported financial results of the operating segments.
Previous wording
Corporate and Other operating loss increased 12% to $558 million for the second quarter of fiscal 2025 compared to $500 million for the second quarter of fiscal 2024, largely due to costs associated with restructuring our support organization, primarily severance costs, in support of our “Back to Starbucks” strategy.
Current wording
Corporate and Other operating loss increased 8% to $474 million for the third quarter of fiscal 2025 compared to $438 million for the third quarter of fiscal 2024, largely due to costs associated with restructuring our support organization, primarily severance costs, in support of our “Back to Starbucks” strategy.
Previous wording
Corporate and Other operating loss increased 8% to $1.1 billion for the first two quarters of fiscal 2025 compared to $986 million for the first two quarters of fiscal 2024, largely due to costs associated with restructuring our support organization, primarily severance costs, in support of our “Back to Starbucks” strategy.
Current wording
Corporate and Other operating loss increased 8% to $1.5 billion for the first three quarters of fiscal 2025 compared to $1.4 billion for the first three quarters of fiscal 2024, largely due to costs associated with restructuring our support organization, primarily severance costs, in support of our “Back to Starbucks” strategy.
Previous wording
(1)Net stores opened/(closed) and transferred during the period, for the two quarters ended March 30, 2025, includes the conversion of 113 licensed stores to company-operated stores following the acquisition of 23.5 Degrees Topco Limited during the first quarter of fiscal 2025.
Current wording
(1)Net stores opened/(closed) and transferred during the period, for the three quarters ended June 29, 2025, includes the conversion of 113 licensed stores to company-operated stores following the acquisition of 23.5 Degrees Topco Limited during the first quarter of fiscal 2025.
Previous wording
Our cash and investments were $3.2 billion as of March 30, 2025 and $3.8 billion as of September 29, 2024. We actively manage our cash and investments in order to internally fund operating needs, make scheduled interest and principal payments on our borrowings, fund acquisitions, and return cash to shareholders through common stock cash dividend payments and share repurchases. Our investment portfolio primarily includes highly liquid available-for-sale securities, including corporate debt securities and government treasury securities (domestic and foreign), as well as principal-protected structured deposits. As of March 30, 2025, approximately $2.0 billion of cash and short-term investments were held in foreign subsidiaries.
Current wording
Our cash and investments were $4.7 billion as of June 29, 2025 and $3.8 billion as of September 29, 2024. We actively manage our cash and investments in order to internally fund operating needs, make scheduled interest and principal payments on our borrowings, fund acquisitions, and return cash to shareholders through common stock cash dividend payments and share repurchases. Our investment portfolio primarily includes highly liquid available-for-sale securities, including corporate debt securities and U.S. government treasury securities, as well as principal-protected structured deposits. As of June 29, 2025, approximately $2.1 billion of cash and short-term investments were held in foreign subsidiaries.
Previous wording
Our $3.0 billion unsecured five-year revolving credit facility (the “2021 credit facility”), of which $150.0 million may be used for issuances of letters of credit, is currently set to mature on September 16, 2026. The 2021 credit facility is available for working capital, capital expenditures, and other corporate purposes, including acquisitions and share repurchases. We have the option, subject to negotiation and agreement with the related banks, to increase the maximum commitment amount by an additional $1.0 billion.
Current wording
Our 2025 credit facility, of which $150.0 million may be used for issuances of letters of credit, is currently set to mature on June 13, 2030. The 2025 credit facility is available for working capital, capital expenditures, and other general corporate purposes, including acquisitions and share repurchases. We have the option, subject to negotiation and agreement with the related banks, to increase the maximum commitment amount by an additional $1.0 billion.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Income from equity investees decreased $35 million, primarily due to lower income from our North American Coffee Partnership joint venture.
Current report — wording carried from elsewhere
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”).
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Interest income and other, net, decreased $12 million, primarily due to lower interest rates in the current year.
Previous report — wording carried elsewhere
Interest expense decreased $26 million, primarily due to savings from cross-currency interest rate hedging, partially offset by higher interest rates on refinanced long-term debt.