STARBUCKS CORP
For the period ended Mar 29, 2026. Filed Apr 28, 2026.
View on SEC.govAbout this filing
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.
Mar 29, 2026 · Filed Apr 28, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Leases
Note 9: Leases
The components of lease costs(in millions):
| Quarter Ended | Two Quarters Ended | |||
|---|---|---|---|---|
| Mar 29, 2026 | Mar 30, 2025 | Mar 29, 2026 | Mar 30, 2025 | |
| Operating lease costs (1) (2) | $406.9 | $458.4 | $898.5 | $917.2 |
| Variable lease costs | 315.1 | 297.5 | 628.3 | 590.9 |
| Short-term lease costs | 4.6 | 5.3 | 9.4 | 10.8 |
| Total lease costs | $726.6 | $761.2 | $1,536.2 | $1,518.9 |
(1)Includes immaterial amounts of sublease income and rent concessions.
(2)The decrease in fiscal 2026 was a result of Starbucks retail operations in China being classified as held for sale during the fiscal quarter, which required us to cease operating lease ROU asset amortization of the related long-lived assets.
The following table includes supplemental information(in millions):
| Two Quarters Ended | ||
|---|---|---|
| Mar 29, 2026 | Mar 30, 2025 | |
| Cash paid related to operating lease liabilities | $1,049.2 | $928.8 |
| Operating lease liabilities arising from obtaining ROU assets (1) | 630.0 | 1,076.6 |
| Mar 29, 2026 | Mar 30, 2025 | |
| Weighted-average remaining operating lease term (1) | 8.6 years | 8.6 years |
| Weighted-average operating lease discount rate (1) | 3.8% | 3.6% |
(1)The fiscal year 2026 amounts exclude Starbucks retail operations in China that were classified as held for sale and the fiscal year 2025 amounts include leases obtained in the acquisition of 23.5 Degrees Topco Limited.
Finance lease assets are recorded in property, plant and equipment, net or assets held for sale, and the corresponding lease liabilities are included in accrued liabilities or liabilities held for sale on the consolidated balance sheets. These balances were not material as of March 29, 2026, and September 28, 2025. Finance lease costs were also immaterial for the quarter and two quarters ended March 29, 2026, and March 30, 2025.
Minimum future maturities of operating lease liabilities(in millions):
| Fiscal Year | Total (1) |
|---|---|
| 2026 (excluding the two quarters ended March 29, 2026) | $836.2 |
| 2027 | 1,600.2 |
| 2028 | 1,446.8 |
| 2029 | 1,293.0 |
| 2030 | 1,155.2 |
| Thereafter | 4,660.7 |
| Total lease payments | 10,992.1 |
| Less imputed interest | (1,682.6) |
| Total | $9,309.5 |
(1)Balances exclude Starbucks retail operations in China that were classified as held for sale.
As of March 29, 2026, we have entered into operating leases that have not yet commenced of $678.5 million, primarily related to real estate leases. These leases will commence between fiscal year 2026 and fiscal year 2030 with lease terms ranging from 5 to 20 years. Lease exit costs associated with our restructuring efforts primarily relate to the closure of certain Starbucks company-operated stores. During the quarter and two quarters ended March 29, 2026, total lease exit costs of $3.0 million and $51.9 million, respectively, were recorded in restructuring and impairments on the consolidated statement of earnings. See Note 17, Restructuring, for further discussion.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.