STARBUCKS CORP

Note 16: Restructuring

In the fourth quarter of fiscal 2024, we announced our“Back to Starbucks” strategy, which was implemented with the goal to bring customers back to our stores and return to growth. As part of this strategy, during the second quarter of fiscal 2025, we further decided and announced our plan to restructure our support organization in an effort to operate more efficiently, increase accountability, reduce complexity, and drive better integration, which resulted in a reduction in our support partner workforce. During the quarter and three quarters ended June 29, 2025, we recognized pre-tax restructuring charges of $20.8 million and $137.0 million, respectively, primarily associated with partner severance costs. These costs were recorded to restructuring on our consolidated statement of earnings. As of June 29, 2025, approximately $29 million of severance costs remained in accrued payroll and benefits on our consolidated balance sheet. We expect additional restructuring costs in the fourth quarter of fiscal 2025, which may, in the aggregate, be material. These are primarily related to the evaluation of our store portfolio and restructuring our support organization, including the recently announced voluntary resignation program.