STARBUCKS CORP

Note 2: Acquisitions and Divestitures

Fiscal 2026

On November 3, 2025, we announced that the Company entered into an agreement to form a joint venture with Boyu Capital, to operate Starbucks retail in China. We believe this partnership marks a significant milestone in the Company’s ongoing transformation and underscores its commitment to accelerating long-term growth in China. Under the agreement, Boyu Capital will acquire up to a 60% interest in Starbucks retail operations in China. The partial divestiture is expected to result in the conversion of 8,011 company-operated stores to licensed stores within our International segment. Starbucks will retain a 40% interest in the joint venture and will continue to own and license the Starbucks brand and intellectual property to the new entity. Boyu Capital will acquire its interest based on a cash-free, debt-free mutually agreed-upon total enterprise value of approximately$4 billion, to be further adjusted for other contractually agreed-upon items. The transaction is subject to required regulatory approvals as well as customary closing conditions, and is expected to close by early calendar year 2026.

In the first quarter of 2026, we determined that the disposal group met the held-for-sale criteria. Accordingly, we have presented the assets and liabilities of the disposal group as held for sale on the consolidated balance sheets.

As of December 28, 2025, the net carrying amounts of the major classes of assets and liabilities of the disposal group were as follows (in millions):

Fiscal 2025

On October 14, 2024, we acquired a 100% ownership interest in 23.5 Degrees Topco Limited, a U.K. licensed business partner, to expand our portfolio of company-operated stores and enhance the coffeehouse experience for customers. The acquisition converted 113 licensed stores to company-operated stores within our International operating segment.

The assets acquired and liabilities assumed are included in our International operating segment. Assets acquired primarily include operating lease ROU assets, intangible assets, goodwill, and property, plant and equipment. The intangible assets acquired as part of this transaction include reacquired licensee agreement rights, which will be amortized over the estimated useful life. In addition, we assumed various liabilities, primarily consisting of operating lease liabilities. The transaction was not material to our consolidated financial statements.