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Consumer Discretionary · NASDAQ: SBUX

Starbucks: how the business works

Starbucks sells coffee drinks and food through 41,607 coffeehouses worldwide, with revenue of $37.9 billion in FY2026.

By · Checked against filings: . Editorial policy. Corrections

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Starbucks Corporation · Seattle, Washington · Founded 1985

Updated for Q4 FY2026 · checked

Revenue, FY2026
$37.9B
Operating income, FY2026
$3.7B
Net income, FY2026
$2.5B
Coffeehouses, Sep 27, 2026
41,607
Employees, Sep 28, 2025
About 381,000

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

The short version

Starbucks in 5 points

  1. 1 · What it sells

    Starbucks sells coffee drinks and food through 41,607 coffeehouses, 13,397 of them run by the company, with revenue of $37.9 billion in FY2026.

    More: what it sells

  2. 2 · Who pays it

    In FY2026, customers in company-operated coffeehouses paid 81.6% of revenue, licensees 12.2% and other channels such as packaged coffee 6.2%.

    More: who pays it

  3. 3 · What it keeps from $100

    Of every $100 that came in during FY2026, Starbucks kept $6.50 as net income, which includes a one-off $536.3 million gain on the China deal, while operating income was $9.74 per $100 of revenue.

    More: what it keeps from $100

  4. 4 · Where the operating profit comes from

    North America earned 61.0% of FY2026 segment operating income on 76.2% of revenue, while Channel Development earned 17.9% on 5.7% of revenue.

    More: where the operating profit comes from

  5. 5 · The one thing to watch

    North America's comparable sales grew 6.6% in FY2026, while its operating margin was 12.0%, against 20.7% in FY2023.

    More: the one thing to watch

Sources: From Starbucks's Q4 FY2026 earnings release (Oct 29, 2026) and FY2025 10-K · checked

See the full receipt and the management scorecard below

Sources (2)
Next: Where $100 goes

01Where the money goes · FY2026

Where does $100 of Starbucks' money go?

Of every $100 that came in (revenue plus other income), this is where it went.

Starbucks · FY2026

Receipt for every $100

Where $100 of Starbucks' money went in FY2026
Coffeehouse operating expenses$44.2
Product and distribution costs$31.5
General, administrative and other$7.5
Depreciation and amortization$3.8
Restructuring and impairments$1.8
Interest$1.4
Income tax$3.4
Kept as net income (includes the China gain)$6.5
Total$100

Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.

How this is worked out

Cityfort calculation from the Q4 FY2026 earnings release. Of every $100 that came in during FY2026 (revenue plus $976.1 million of other income, including the $536.3 million China gain): each line = line ÷ $38.9 billion × 100.

Sources (1)
Next: The business in one line

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02The business in one line

What does Starbucks do?

Customers pay Starbucks for drinks and food in its own coffeehouses, while licensees and grocery partners pay for supplies and royalties; running the coffeehouses and buying coffee and food take most of the money, and $6.50 of every $100 that came in during FY2026 was left as net income.

  • In FY2026, company-operated coffeehouses brought in $30.9 billion, or 81.6% of revenue. Licensed coffeehouses brought in $4.6 billion (12.2%) and other channels $2.4 billion (6.2%).
  • Of every $100 that came in, coffeehouse running costs took $44.20 and coffee, food and distribution $31.46. Net income included a one-off $536.3 million gain on the China deal.
Next: Who pays it

03Who pays it

Who pays Starbucks?

  • Customers in company-operated coffeehouses

    82%

    of revenue

    People buying drinks and food in the 13,397 coffeehouses Starbucks runs: 10,902 in North America and 2,495 elsewhere.

  • Licensees

    12%

    of revenue

    Companies that run 28,210 Starbucks coffeehouses, including the China joint venture. They buy products and equipment from Starbucks and pay royalties and other fees.

  • Other channels

    6%

    of revenue

    Mostly packaged coffee and tea sold through Nestlé to grocery stores, warehouse clubs and foodservice.

  • Customers in company-operated coffeehouses82%
  • Licensees12%
  • Other channels6%

How spread out the customers are

No single customer was 10% or more of Starbucks's revenue, according to its FY2025 10-K.

Sources (2)
Next: Why it makes money

04Why it makes money

Why does Starbucks make money?

Starbucks earns most of its revenue in coffeehouses it runs, and higher margins on licensing and packaged coffee.

Company-operated coffeehouses bring in most revenue but carry staff, rent and ingredient costs: coffeehouse operating expenses alone took $45.34 per $100 of FY2026 revenue. Channel Development, built on Nestlé's distribution, had a 46.8% operating margin. After the China deal, 68% of coffeehouses were licensed.

Operating income per $100 of revenue

$16.8$9.7

FY2021 to FY2026

  1. Customers buy drinks and food; global comparable sales rose 6.2% in FY2026
  2. Starbucks roasts its own coffee and supplies licensed coffeehouses
  3. Licensees pay for products and royalties and fund their own stores
  4. Nestlé sells Starbucks coffee in grocery stores, with a 46.8% segment margin
  5. Cash from operations, $5.0 billion in FY2026, pays for coffeehouses, dividends and debt
  6. More coffeehouses and visits bring in more sales

↺ Step 6 feeds back into step 1.

Sources (2)
Next: Business segments

05Business segments · FY2026

Which businesses make up Starbucks?

  • North America

    76%

    Coffeehouses in the US and Canada: 10,902 company-operated and 7,274 licensed. It earned 61.0% of segment operating income; its operating margin was 12.0%, against 20.7% in FY2023.

    Revenue $28.9B · Operating profit $3.5B

  • International

    18%

    Coffeehouses in China, Japan, Asia Pacific, Europe, the Middle East, Africa and Latin America; 20,936 of 23,431 are licensed. It earned 21.0% of segment operating income. Revenue fell in Q3 and Q4 FY2026 after China's stores became licensed.

    Revenue $6.7B · Operating profit $1.2B

  • Channel Development

    6%

    Packaged coffee and tea sold through Nestlé and other partners. It earned 17.9% of segment operating income, a 46.8% margin, including $252.0 million from part-owned companies.

    Revenue $2.2B · Operating profit $1.0B

  • Corporate and Other

    0%

    Head-office costs not charged to the segments, an operating loss of $2.0 billion. The segment shares above leave it out.

    Revenue $95.7M · Operating profit −$2.0B

How the mix changed

  • North America
  • International
  • Channel Development
  • Corporate and Other

Revenue by segment, FY2023 to FY2026.

US$

See the numbers
How the mix changed (US$)
YearNorth AmericaInternationalChannel DevelopmentCorporate and Other
FY2023$26.6B$7.5B$1.9B$24.6M
FY2024$27.0B$7.3B$1.8B$58M
FY2025$27.4B$7.8B$1.9B$120M
FY2026$28.9B$6.7B$2.2B$95.7M
Sources (2)
Next: How has it done

06The numbers · Consolidated · US$

How has Starbucks done?

Revenue

$37.9BFY2026

Revenue rose every year from $29.1 billion in FY2021 to $37.9 billion in FY2026, but fell in Q3 and Q4 FY2026 after China's stores left the consolidated figures.

US$

See the numbers
Revenue (US$)
PeriodRevenue (US$)
FY2021$29.1B
FY2022$32.3B
FY2023$36.0B
FY2024$36.2B
FY2025$37.2B
FY2026$37.9B
Q4 FY2024$9.1B
Q1 FY2025$9.4B
Q2 FY2025$8.8B
Q3 FY2025$9.5B
Q4 FY2025$9.6B
Q1 FY2026$9.9B
Q2 FY2026$9.5B
Q3 FY2026$9.3B
Q4 FY2026$9.1B

Net profit

$2.5BFY2026

Net income fell from $4.2 billion in FY2021 to $1.9 billion in FY2025, then rose to $2.5 billion in FY2026, which included the $536.3 million China gain.

US$

See the numbers
Net profit (US$)
PeriodNet profit (US$)EPS ($)
FY2021$4.2B$3.54
FY2022$3.3B$2.83
FY2023$4.1B$3.58
FY2024$3.8B$3.31
FY2025$1.9B$1.63
FY2026$2.5B$2.21
Q4 FY2024$909M$0.80
Q1 FY2025$781M$0.69
Q2 FY2025$384M$0.34
Q3 FY2025$558M$0.49
Q4 FY2025$133M$0.12
Q1 FY2026$293M$0.26
Q2 FY2026$511M$0.45
Q3 FY2026$1.0B$0.91
Q4 FY2026$677M$0.59

Profit kept per $100 of revenue

$6.7FY2026

Operating income per $100 of revenue was $9.74 in FY2026, against $16.32 in FY2023, after restructuring charges of $892.0 million in FY2025 and $688.6 million in FY2026.

$ of profit per $100 of revenue (net margin)

See the numbers
Profit kept per $100 of revenue ($ of profit per $100 of revenue (net margin))
YearNet marginEBITDA margin
FY202114.5%22.0%
FY202210.2%19.1%
FY202311.5%20.4%
FY202410.4%19.4%
FY20255.0%12.7%
FY20266.7%13.9%

Free cash flow

$3.7BFY2026

Free cash flow (cash from operations minus purchases of property and equipment) was $3.7 billion in FY2026, up from $2.4 billion, as those purchases fell to $1.3 billion.

US$ · cash from operations minus spending on plants and equipment

See the numbers
Free cash flow (US$ · cash from operations minus spending on plants and equipment)
YearCash from operationsCapital spendingFree cash flow
FY2021$6.0B$1.5B$4.5B
FY2022$4.4B$1.8B$2.6B
FY2023$6.0B$2.3B$3.7B
FY2024$6.1B$2.8B$3.3B
FY2025$4.7B$2.3B$2.4B
FY2026$5.0B$1.3B$3.7B
See all yearly numbers
Starbucks annual financials, FY2021–FY2026, US$
YearRevenueEBITDANet profitEPS ($)Operating cashCapexFree cash
FY2021$29.1B$6.4B$4.2B$3.54$6.0B$1.5B$4.5B
FY2022$32.3B$6.1B$3.3B$2.83$4.4B$1.8B$2.6B
FY2023$36.0B$7.3B$4.1B$3.58$6.0B$2.3B$3.7B
FY2024$36.2B$7.0B$3.8B$3.31$6.1B$2.8B$3.3B
FY2025$37.2B$4.7B$1.9B$1.63$4.7B$2.3B$2.4B
FY2026$37.9B$5.3B$2.5B$2.21$5.0B$1.3B$3.7B

EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (Sunday closest to September 30; FY2026 ended Sep 27, 2026. FY2021 had 53 weeks, and FY2027 will too. FY2026 figures are from the unaudited Oct 29, 2026 earnings release; the FY2026 10-K was not filed as of Nov 6, 2026.). Net profit is the share belonging to the company's owners.

Download Starbucks's yearly and quarterly numbers (CSV, with source ids)

Learn: Fiscal years that don't end in December: Nvidia's FY2027 explained · Stock-based compensation and dilution: pay that becomes shares

Sources (11)
Next: What they said, and what happened

07Who runs it

Who runs Starbucks, and did they deliver?

  • Brian Niccol

    Chairman and Chief Executive Officer · since 2024

    CEO since September 2024; previously CEO of Chipotle. FY2025 total pay was $31.0 million, including $5.0 million of a signing bonus. FY2024 pay of $95.8 million included replacement equity grants.

  • Cathy Smith

    Executive Vice President and Chief Financial Officer · since 2025

    CFO since Mar 24, 2025. FY2025 total pay was $15.8 million.

  • Jørgen Vig Knudstorp

    Lead independent director · since 2025

    Lead independent director since the 2025 annual meeting, because the chair and CEO roles are combined.

What they said, and what happened

2 delivered · 1 partly delivered · 2 too early to tell

  1. Said on Nov 3, 2025

    Starbucks said Boyu Capital would take up to 60% of its China retail business at an enterprise value of about $4 billion, with Starbucks keeping 40%.

    What happened

    The deal closed on Mar 30, 2026. Total consideration was $3.1 billion, the retained 40% was valued at about $1.2 billion, and the pre-tax gain was $536.3 million.

    Delivered

  2. Said on Jan 28, 2026

    Starbucks guided to FY2026 global and US comparable sales growth of at least 3% and about 600 to 650 net new coffeehouses.

    What happened

    Global comparable sales grew 6.2% and US 6.5%. The coffeehouse count rose by 617, though on Sep 24, 2026 Starbucks had cut its estimate to about 440; the filings do not explain the gap.

    Delivered

  3. Said on Sep 25, 2025

    Starbucks expected about $1 billion of charges from its September 2025 restructuring, about 90% in North America, including coffeehouse closures.

    What happened

    It closed 627 stores and booked $892.0 million of restructuring and impairments in FY2025. It approved two more plans in May and September 2026.

    Partly delivered

  4. Said on Oct 29, 2026

    Starbucks guided to FY2027 revenue about 1% lower, GAAP diluted EPS of $3.07 to $3.17 and about 1,200 net new coffeehouses.

    What happened

    FY2027 ends on Sep 26, 2027.

    Too early to tell

  5. Said on Oct 29, 2026

    The Oct 29, 2026 earnings release quotes the CFO saying Starbucks plans to resume share buybacks in fiscal 2027.

    What happened

    There were no buybacks in FY2025 or FY2026.

    Too early to tell
Sources (10)
Next: What could go wrong

08What could go wrong

What could go wrong for Starbucks?

  • Execution

    North America margins

    North America's operating margin was 12.0% in FY2026, against 20.7% in FY2023, while comparable sales grew 6.6%. Starbucks approved restructuring plans in September 2025, May 2026 and September 2026.

    Watch North America operating margin in each earnings release.

  • Raw-material prices

    Coffee prices and tariffs

    The FY2025 10-K says coffee prices rose over five years, with significant increases in the last two, and names tariffs on coffee imports. Product and distribution costs were $32.27 per $100 of FY2026 revenue, against $31.35 in FY2025.

    Watch Product and distribution costs as a share of revenue.

  • Other

    Labor costs and unions

    Coffeehouse operating expenses, mainly staff wages and benefits and occupancy, took $45.34 per $100 of FY2026 revenue. Unions had representation rights at about 6% of US company-operated stores in the FY2025 10-K. Starbucks says the risk of a material loss from union-related lawsuits is remote.

    Watch Coffeehouse operating expenses as a share of revenue.

  • Concentration

    China is now a minority stake

    Since Mar 30, 2026 Starbucks owns 40% of the China joint venture and earns product sales and royalties from it. International revenue was $1.3 billion in Q4 FY2026, against $2.1 billion a year earlier.

    Watch International revenue and income from part-owned companies.

  • Debt

    Debt, negative equity and ratings

    Debt was $13.3 billion at Sep 27, 2026, against a shareholders' deficit of $7.7 billion. Ratings in the May 6, 2025 term sheet were Baa1 and BBB+, both on negative outlook, and the credit facility's pricing is tied to them.

    Watch Net debt each quarter and any rating stated in a filing.

  • Cash and liquidity

    Dividends above net income

    Dividends paid were 111.8% of net income in FY2026 and 149.3% in FY2025. Free cash flowCash from operations minus spending on buildings and equipment. Learn more of $3.7 billion covered FY2026 dividends of $2.8 billion.

    Watch Free cash flow against dividends, and any buybacks in FY2027.

  • Competition

    Competition

    The FY2025 10-K says Starbucks faces intense competition from specialty coffee shops, quick-service restaurants and ready-to-drink coffee makers, and competes for prime locations and staff.

    Watch Comparable transactions in each release: global transactions rose 1.8% in Q4 FY2026.

Sources (7)
Next: Supporters vs. critics

09Both sides

What do supporters and critics point to?

Facts each side points to. We don't say which side is right.

What supporters point to

  • US comparable sales grew 6.5% in FY2026, after falling 2% in FY2025.
  • Channel Development earned $1.0 billion of operating income on $2.2 billion of revenue in FY2026, a 46.8% margin.
  • Free cash flow rose to $3.7 billion in FY2026 from $2.4 billion in FY2025.
  • Net debt fell from $12.6 billion to $9.4 billion during FY2026, after the China deal and the note buybacks.

What critics point to

  • Operating income per $100 of revenue was $9.74 in FY2026, against $16.32 in FY2023.
  • FY2026 net income included a $536.3 million pre-tax China gain, and restructuring charges were $892.0 million and $688.6 million in the last two years.
  • Shareholders' equity was negative $7.7 billion at Sep 27, 2026.
  • Dividends paid were 111.8% of net income in FY2026 and 149.3% in FY2025.
  • Starbucks cut its net new coffeehouse estimate to about 440 in September 2026, then reported 617, and the filings do not explain the gap.
Next: What to watch next

10What to watch next

What should you watch next at Starbucks?

Next event

Q1 FY2027 results

Date not announced yet.

  • North America margin

    North America's comparable sales grew 6.6% in FY2026, while its operating margin was 12.0%, against 20.7% in FY2023.

  • The FY2026 10-K

    FY2026 figures on this page come from the unaudited Oct 29, 2026 release. The FY2026 10-K will give the audited figures, updated risk factors and employee numbers.

  • International after China

    Starbucks guided on Oct 29, 2026 to about 1,200 net new coffeehouses in FY2027, led by International. International revenue was $1.3 billion in Q4 FY2026.

  • A 53-week year

    FY2027 has 53 weeks. Starbucks said in its Oct 29, 2026 earnings release that its FY2027 revenue guidance includes about $700 million from the 53rd week.

Next: Key dates

11Key dates

What are the key dates for Starbucks?

Dates as stated in the filings. A date that no filing has given yet shows as not yet stated.
Key dates for Starbucks
EventDateSource
Quarterly dividend of $0.63 payableTo holders of record on Nov 13, 2026.Q4 and fiscal 2026 earnings release (8-K Ex. 99.1, Oct 29, 2026)
FY2026 Form 10-KNot filed as of Nov 6, 2026; the FY2025 10-K was filed on Nov 14, 2025.Not yet statedEDGAR submissions index for CIK 0000829224; Form 10-K for fiscal year 2025 (ended Sep 28, 2025)
Fiscal 2027 ends (53 weeks)Q4 and fiscal 2026 earnings release (8-K Ex. 99.1, Oct 29, 2026)
$3.0 billion revolving credit facility maturesNothing was drawn at FY2025 year end.Form 8-K, Jun 16, 2025: $3.0 billion revolving credit agreement (Item 1.01); Form 10-K for fiscal year 2025 (ended Sep 28, 2025)

Learn: Fiscal years that don't end in December: Nvidia's FY2027 explained

Sources (4)
Next: Key facts

12Key facts

Key facts about Starbucks

What is Starbucks's business model?
Starbucks roasts coffee and sells drinks and food through 41,607 coffeehouses at Sep 27, 2026: 13,397 it runs itself and 28,210 run by licensees. It also sells packaged coffee and tea through grocery stores under its Global Coffee Alliance with Nestlé.
How does Starbucks make money?
Starbucks had revenue of $37.9 billion in FY2026 (year ended Sep 27, 2026): $30.9 billion from company-operated coffeehouses, $4.6 billion from licensed coffeehouses and $2.4 billion from other sales such as packaged coffee. Operating income was $3.7 billion.
Is Starbucks profitable?
Yes. Starbucks's net income was $2.5 billion in FY2026, up from $1.9 billion in FY2025 but below $4.2 billion in FY2021. FY2026 net income included a $536.3 million pre-tax gain on the China deal and $688.6 million of restructuring and impairment charges.
What is Starbucks's revenue by segment?
Starbucks's FY2026 revenue of $37.9 billion came from North America ($28.9 billion, 76.2%), International ($6.7 billion, 17.8%), Channel Development ($2.2 billion, 5.7%) and Corporate and Other ($95.7 million).
Who owns Starbucks?
Starbucks's largest holders in 2026 Schedule 13GA filing by anyone who owns more than 5% of a company's shares and does not seek control. Learn more filings were Capital Research Global Investors (9.0% at Mar 31, 2026), Capital World Investors (8.2% at Jun 30, 2026) and Vanguard Capital Management (7.51% at Mar 31, 2026). Directors and executive officers held under 1% on Jan 16, 2026.
How many coffeehouses does Starbucks have?
Starbucks had 41,607 coffeehouses at Sep 27, 2026, up 617 in FY2026. 18,176 were in North America and 23,431 in International markets; 68% were licensed after China's 7,991 stores moved to a joint venture.
How much does Starbucks earn from licensed coffeehouses?
Starbucks's licensed coffeehouse revenue was $4.6 billion in FY2026, or 12.2% of revenue. Licensees run 28,210 coffeehouses and pay Starbucks for products and equipment, plus royalties and other fees.
What is Starbucks's Channel Development business?
Starbucks's Channel Development segment sells coffee and tea products through grocery stores, warehouse clubs and foodservice, largely through Nestlé. It had revenue of $2.2 billion and operating income of $1.0 billion in FY2026.
What happened to Starbucks China?
On Mar 30, 2026, Starbucks sold control of its China retail business to a joint venture with Boyu Capital, keeping a 40% stake. Its 7,991 China stores became licensed, and Starbucks recorded a $536.3 million pre-tax gain in Q3 FY2026.
Does Starbucks pay a dividend?
Yes. Starbucks declared $2.49 a share of dividends for FY2026 and paid $2.8 billion in cash dividends. It declared a $0.63 quarterly dividend payable on Nov 27, 2026.
Sources (9)
Next: Go deeper

Terms on this page

Each explains the term in plain English, with the same number from other companies on Cityfort.

Go deeper

More detail from the same filings. Open any section.

13What it sells

13What it sells

What does Starbucks sell?

Starbucks buys green coffee beans, roasts them and sells coffee, tea and other drinks with food in its coffeehouses. Other companies run more than two thirds of those coffeehouses under its brand, and Nestlé sells its packaged coffee in grocery stores.

  • Drinks and food in company-operated coffeehouses ($30.9B in FY2026)

    Sold in the 13,397 coffeehouses Starbucks runs itself. In FY2025, drinks were 73% of these coffeehouses' sales and food 23%.

  • Licensed coffeehouses ($4.6B)

    28,210 coffeehouses run by other companies under the Starbucks brand, including the China joint venture since Mar 30, 2026. Starbucks earns from product and equipment sales, royalties and other fees.

  • Other: packaged coffee and tea ($2.4B)

    Mainly coffee and tea products sold through grocery stores, warehouse clubs and foodservice under the Global Coffee Alliance with Nestlé. The Channel Development segment's revenue was $2.2 billion.

What it does

  • Does: Buys green coffee from many growing regions and roasts it itself
  • Does: Runs 13,397 coffeehouses and licenses its brand to 28,210 others (Sep 27, 2026)
  • Does: Operated in 89 markets in FY2025
  • Does: Also sells under the Teavana, Ethos and Starbucks Reserve brands

What it does not do

  • Does not: Does not distribute its packaged coffee in grocery stores itself: Nestlé controls that outside Starbucks coffeehouses
  • Does not: No longer runs its China stores: since Mar 30, 2026 it owns 40% of the joint venture that does
  • Does not: Does not run most coffeehouses outside North America: 20,936 of 23,431 International coffeehouses were licensed at Sep 27, 2026
Sources (3)
14How the money flows

14How the money flows · FY2026

How does money flow through Starbucks?

Money in

  • Company-operated coffeehouses$30.9B
  • Licensed coffeehouses$4.6B
  • Other (mainly packaged coffee and tea)$2.4B
  • China deal gain ($536.3M), income from part-owned companies ($294.8M) and interest income ($145.0M)$976M

The company

Starbucks

$38.9B came in

Money out

  • Coffeehouse operating expenses$17.2B
  • Product and distribution costs$12.2B
  • General, administrative and other operating expenses$2.9B
  • Depreciation and amortization$1.5B
  • Restructuring and impairments$689M
  • Interest expense and income tax$1.8B
  • Net income$2.5B
  1. Customers, licensees and partners paid Starbucks $37.9 billion in FY2026, most of it in company-operated coffeehouses.
  2. Running the coffeehouses took $17.2 billion. This line covers staff wages and benefits, rent and other coffeehouse costs.
  3. Coffee, food, packaging and distribution took $12.2 billion; head office and other costs took $2.9 billion.
  4. Restructuring cost $688.6 million. A one-off $536.3 million gain on the China deal and other income added $976.1 million.
  5. After $531.3 million of interest and $1.3 billion of tax, $2.5 billion was left as net income.
Sources (1)
15What it needs to run

15What it needs to run

What does Starbucks need to run?

  • Green coffee

    Starbucks buys arabica beans from many regions, mostly on fixed-price or price-to-be-fixed contracts, and hedges part of the price. Its FY2025 10-K says coffee prices rose over five years, with significant increases in the last two.

  • People

    About 381,000 employees at Sep 28, 2025, including about 214,000 in US company-operated stores.

  • Leased coffeehouses

    Operating lease liabilities were $9.1 billion at Sep 27, 2026, down from $10.5 billion a year earlier after China left the balance sheet.

  • Capital spending

    Purchases of property and equipment were $1.3 billion in FY2026, down from $2.8 billion in FY2024.

Sources (2)
16Where growth could come from

16Where growth could come from

Where could Starbucks' growth come from?

Starbucks said in its Oct 29, 2026 earnings release that it expects FY2027, a 53-week year, to bring revenue about 1% lower, with China retail no longer consolidated; that figure includes about $700 million from the extra week. It expects North America comparable sales growth of about 4.0%, GAAP diluted EPS of $3.07 to $3.17 and about 1,200 net new coffeehouses, led by International.
Management statement, Oct 29, 2026. Reported as a statement, not our forecast.

  • US coffeehouse turnaround

    Working

    US comparable sales +6.5%, FY2026

    US comparable sales fell 2% in FY2025, then rose in every quarter of FY2026. Global transactions rose 3.2% and average ticket 3.0% in FY2026.

    Status: Working, on track against what the company said.

  • Licensing International markets

    New

    20,936 licensed International coffeehouses

    Starbucks said in May 2026 that International has moved toward a model with nearly 90% of coffeehouses licensed. It and Boyu Capital share an aim of up to 20,000 China locations over time.

    Status: New, recently announced.

  • Cost cuts and restructuring

    Mixed

    Operating margin 9.7%, FY2026

    Starbucks stated a $2 billion cost-savings pursuit in May 2026. Restructuring charges were $892.0 million in FY2025 and $688.6 million in FY2026; operating margin was 7.9% and 9.7%.

    Status: Mixed, partly on track.

  • Channel Development

    Working

    Revenue +16.1%, FY2026

    Segment revenue rose to $2.2 billion from $1.9 billion, and operating income to $1.0 billion from $885.1 million.

    Status: Working, on track against what the company said.

Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.

Sources (4)
17The company's own measures (non-GAAP)

17The company's own measures · FY2026 and Q4 FY2026

What do Starbucks' own measures show?

Adjusted (non-GAAP) figures and comparable sales are Starbucks's own measures, shown next to the official (GAAP) number. They are never added together.

  • Official (GAAP): Operating income, FY2026

    $3.7B

    Company's own measure: Non-GAAP operating income, FY2026

    $4.5B

    Starbucks's own measure. It adds back $688.6 million of restructuring and impairments, $79.3 million of costs tied to the Boyu Capital deal and $53.7 million of transformation costs.

  • Official (GAAP): Operating margin, FY2026

    9.7%

    Company's own measure: Non-GAAP operating margin, FY2026

    11.9%

    The same adjustments, as a share of revenue.

  • Official (GAAP): Diluted EPS, FY2026

    $2.21

    Company's own measure: Non-GAAP EPS, FY2026

    $2.72

    Also removes the China gain ($0.47 a share) and adds back a $0.24 tax charge recorded when China retail was put up for sale.

  • Official (GAAP): Diluted EPS, FY2025

    $1.63

    Company's own measure: Non-GAAP EPS, FY2025

    $2.13

    Adds back $892.0 million of restructuring and impairments. It also removes a $145.2 million litigation settlement Starbucks received, which lowers the adjusted figure.

  • Official (GAAP): Operating margin, Q4 FY2026

    10.8%

    Company's own measure: Non-GAAP operating margin, Q4 FY2026

    14.0%

    Up 4.6 points from 9.4% a year earlier as reported. The release headline says 450 basis points, which is the constant-currency figure.

  • Official (GAAP): Revenue growth, FY2026 (as stated in the Q4 FY2026 earnings release)

    2.0%

    Company's own measure: Global comparable coffeehouse sales growth, FY2026

    6.2%

    Sales at company-operated coffeehouses open 13 months or more, excluding currency moves. China comparable sales are not reported after Q2 FY2026.

  • Official (GAAP): North America revenue growth, FY2026 (as stated in the Q4 FY2026 earnings release)

    5.6%

    Company's own measure: North America comparable sales growth, FY2026

    6.6%

    The same measure for North America. US comparable sales grew 6.5%, after falling 2% in FY2025.

  • Official (GAAP): Revenue growth, Q4 FY2026

    −4.5%

    Company's own measure: Global comparable sales growth, Q4 FY2026

    7.2%

    Transactions rose 1.8% and average ticket 5.2%. Revenue fell because China's stores no longer count as company-operated.

These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.

Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out

Sources (2)
18Financial strength and debt

18Financial strength · Sep 27, 2026

How much debt does Starbucks have?

At Sep 27, 2026, Starbucks's debt exceeded its cash and short-term investments by $9.4 billion, about 1.9 years of FY2026 operating cash flow.
  • Total debt$13.3B
  • Cash and investments$3.9B
  • Net debt (debt minus cash)$9.4B
  • Net worth (shareholders' money)−$7.7B
Interest cover
6.9×
how many times operating profit covers interest
  • Debt is long-term debt at carrying value, including $1.5 billion due within a year; $9.1 billion of operating lease liabilities are not counted. Net debt and interest coverage (operating income ÷ interest expense) are a Cityfort calculation from the Q4 FY2026 earnings release.
  • Net debt fell from $12.6 billion a year earlier. In May 2026 Starbucks bought back about $1.3 billion of its notes through tender offers, using China deal proceeds.
  • Shareholders' equity has been negative in every year since at least FY2021: total liabilities exceed total assets. The deficit was $7.7 billion at Sep 27, 2026, so debt-to-equity is not shown.
  • Long-term deferred revenue of $5.6 billion is mostly what remains of about $7 billion Nestlé paid up front in fiscal 2018. Starbucks books it as revenue over time; it is not debt.
Sources (6)
19Who owns it

19Who owns it · ownership as of Jan 16, 2026

Who owns Starbucks?

Starbucks has one class of common stock, one vote per share. Directors, nominees and executive officers (15 people) held 352,946 shares, including options and deferred units, on Jan 16, 2026: under 1% in the proxy, 0.03% by a Cityfort calculation from the 2026 proxy statement.
Officers and directors (as a group), shares
0.0%
Share classes
Starbucks share classes: shares outstanding (millions) and votes per share
ClassShares (millions)Votes per shareHeld by% of shares% of votesTraded
Common stock (1,140.1 million shares at Sep 27, 2026 (Q4 FY2026 earnings release balance sheet); 1,140.0 million on Jul 23, 2026 (Q3 FY2026 10-Q cover). No other class is outstanding.)1,140.11–––Yes
Holders of 5% or more
Starbucks holders of 5% or more, from the proxy statement or later Schedule 13G filings; each row shows its own date
HolderSharesVotesAs ofSourceNote
Capital Research Global Investors9.0%–May 14, 2026S33, S20Schedule 13G/A, holding as of Mar 31, 2026 (102,403,410 shares). The 2026 proxy listed 6.7%.
Capital World Investors8.2%–Aug 12, 2026S35, S34, S20Schedule 13G/A, holding as of Jun 30, 2026 (92,900,338 shares), down from 9.2% at Mar 31, 2026. The 2026 proxy listed 6.6%.
Vanguard Capital Management LLC7.5%–Apr 30, 2026S32Schedule 13G, holding as of Mar 31, 2026 (85,640,059 shares). Other Vanguard units report separately, so this is not all of Vanguard. Not in the proxy table.
The Vanguard Group10.0%–Nov 5, 2025S20, S31Proxy figure (113,888,463 shares), from a Schedule 13G/A filed Nov 5, 2025. In March 2026 The Vanguard Group reported 0 shares on Schedule 13G/A after a Vanguard realignment.

From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.

Learn: How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes

Sources (8)
20What it does with profit

20What it does with profit

What does Starbucks do with its profit?

Cash dividends paid were $2.8 billion in FY2026, 111.8% of net income, and $2.8 billion in FY2025, 149.3% (Cityfort calculation from the FY2025 10-K and Q4 FY2026 earnings release). There were no buybacks in FY2025 or FY2026. The Oct 29, 2026 release quotes the CFO saying Starbucks plans to resume buybacks in fiscal 2027.

Dividend per share

$2.49FY2026

Dividend paid for each share, by financial year.

$ per share

See the numbers
Dividend per share ($ per share)
YearDividend per shareShare of profit paid out
FY2025$2.45–
FY2026$2.49–

  • Buyback · Oct 2, 2022

    FY2022: share repurchases of $4.0 billion.

    $4.0B

  • Buyback · Oct 1, 2023

    FY2023: share repurchases of $984.4 million.

    $984M

  • Buyback · Sep 29, 2024

    FY2024: bought back 12.8 million shares for $1.3 billion.

    $1.3B

Sources (3)
21Governance signals

21Governance signals

What do Starbucks' governance filings show?

Auditor
Deloitte & Touche LLP, since 1987
Auditor changes
None in the period covered
Audit qualifications
None reported
Related-party dealings
The 2026 proxy lists one related person transaction: an aircraft time-sharing agreement with Brian Niccol. In September 2025 the board replaced his $250,000 yearly limit on personal flights, and the reimbursement requirement, with a quarterly review; he paid Starbucks $0 under it in FY2025.
Credit rating
Moody's and S&P (as stated in Starbucks's May 6, 2025 note pricing term sheet) Baa1 (Moody's) / BBB+ (S&P) (Negative for both, as of May 6, 2025), May 6, 2025

A credit rating describes the company's ability to repay debt. It is not a rating of the share.

Flags to know about

  • disclosure

    Credit ratings are dated

    The only ratings in Starbucks's SEC filings are in its May 6, 2025 note pricing term sheet: Moody's Baa1 and S&P BBB+, both with a negative outlook. No later rating is stated in the company's filings through Nov 6, 2026.

  • disclosure

    FY2026 figures not yet audited

    The FY2026 10-K was not filed as of Nov 6, 2026, so FY2026 figures here come from the unaudited Oct 29, 2026 earnings release.

  • disclosure

    Coffeehouse count estimate not reconciled

    On Sep 24, 2026 Starbucks cut its FY2026 net new coffeehouse estimate to about 440. Its Oct 29, 2026 release reports 617. The filings do not explain the difference.

  • disclosure

    Rewards members no longer reported

    Starbucks reported 34.6 million active US Starbucks Rewards members in Q1 FY2025. The earnings releases from Q2 FY2025 to Q4 FY2026 do not report the figure.

  • other

    No shares used as collateral

    The 2026 proxy says no current executive officer or director holds Starbucks shares used as collateral for a loan. Policy bars directors and employees from hedging Starbucks stock or using it as loan collateral.

  • other

    March 2026 shareholder votes

    At the Mar 25, 2026 meeting, 774.9 million votes backed executive pay and 99.4 million opposed. A shareholder proposal asking for supermajority voting requirements to be replaced with majority voting passed; a shareholder proposal for an independent-chair policy failed.

Sources (8)
22What the market paid

22What the market paid · price as of Nov 5, 2026

What did the market pay for Starbucks on Nov 5, 2026?

Price as of Nov 5, 2026 (shown for education; prices change daily).

Price as of Nov 5, 2026: Starbucks closed at $106.16 on Nasdaq. Times 1,140.1 million shares (Sep 27, 2026) that is a market value of about $121.0 billion (Cityfort calculation from the Nov 5, 2026 Nasdaq closing price and the Q4 FY2026 earnings release). P/E is price ÷ earnings per share: 48.0 on FY2026 diluted EPS of $2.21, which includes the China gain and restructuring charges. Dividend yield as of the same date: 2.37%, on the $0.63 quarterly dividend annualized to $2.52.

Share price
$106.16
Market value (market cap)
$121.0B
P/E
48×

More price-based ratios · as of Nov 5, 2026

Each ratio divides a number from the company's filings by the market value or share price on Nov 5, 2026. Prices change daily, so these ratios do too.

Shares used for the market value: 1,140.1 million ($106.16 × 1,140.1 million shares ≈ $121.0B). Source: Q4 and fiscal 2026 earnings release (8-K Ex. 99.1, Oct 29, 2026); Form 10-Q for Q3 fiscal 2026 (ended Jun 28, 2026); 2026 proxy statement (DEF 14A)

Source: Nasdaq historical quotes for SBUX (closing price Nov 5, 2026); Q4 and fiscal 2026 earnings release (8-K Ex. 99.1, Oct 29, 2026)

Sources (7)
23How it got here

23How it got here

How did Starbucks get here?

  1. 1971

    Milestone

    Coffee roaster since 1971

    Starbucks says it has roasted coffee since 1971. Starbucks Corporation was formed in 1985.

  2. 2018

    Business-model change

    Packaged coffee handed to Nestlé

    Nestlé paid about $7 billion up front for the Global Coffee Alliance, which Starbucks books as revenue over time.

  3. 2021

    Milestone

    Korea stake sold

    Starbucks recorded an $864.5 million gain on its Korea joint-venture stake in FY2021, a 53-week year.

  4. 2024

    Business-model change

    Brian Niccol becomes CEO

    The former Chipotle CEO became chairman and CEO in September 2024.

  5. 2025

    Crisis

    Restructuring and store closures

    Starbucks closed 627 stores in Q4 FY2025 and booked $892.0 million of restructuring and impairments that year.

  6. 2026

    Business-model change

    China moves to a joint venture

    On Mar 30, 2026, 7,991 China stores moved to a joint venture with Boyu Capital, 40% owned by Starbucks. The pre-tax gain was $536.3 million.

  7. 2026

    Milestone

    Debt bought back

    In May 2026 Starbucks bought back about $1.3 billion of its notes through tender offers.

Sources (8)

24Sources and changes

Where every number on this page comes from

Sources (31 documents)
  1. S1Form 10-K for fiscal year 2025 (ended Sep 28, 2025) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Nov 14, 2025
  2. S2Form 10-K for fiscal year 2024 (ended Sep 29, 2024) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Nov 20, 2024
  3. S3Form 10-K for fiscal year 2023 (ended Oct 1, 2023) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Nov 17, 2023
  4. S4Form 10-K for fiscal year 2022 (ended Oct 2, 2022) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Nov 18, 2022
  5. S5Q4 and fiscal 2026 earnings release (8-K Ex. 99.1, Oct 29, 2026) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 29, 2026
  6. S6Form 10-Q for Q3 fiscal 2026 (ended Jun 28, 2026) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jul 29, 2026
  7. S7Q3 fiscal 2026 earnings release (8-K Ex. 99.1, Jul 29, 2026) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jul 29, 2026
  8. S9Q2 fiscal 2026 earnings release (8-K Ex. 99.1, Apr 28, 2026) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Apr 28, 2026
  9. S11Q1 fiscal 2026 earnings release (8-K Ex. 99.1, Jan 28, 2026) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jan 28, 2026
  10. S12Q4 and fiscal 2025 earnings release (8-K Ex. 99.1, Oct 29, 2025) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 29, 2025
  11. S14Q3 fiscal 2025 earnings release (8-K Ex. 99.1, Jul 29, 2025) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jul 29, 2025
  12. S16Q2 fiscal 2025 earnings release (8-K Ex. 99.1, Apr 29, 2025) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Apr 29, 2025
  13. S18Q1 fiscal 2025 earnings release (8-K Ex. 99.1, Jan 28, 2025) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jan 28, 2025
  14. S19Q4 and fiscal 2024 earnings release (8-K Ex. 99.1, Oct 30, 2024) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 30, 2024
  15. S202026 proxy statement (DEF 14A) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jan 26, 2026
  16. S21Form 8-K, Sep 25, 2025: restructuring plan (Item 2.05) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Sep 25, 2025
  17. S22Form 8-K, Nov 3, 2025: China retail joint venture agreement with Boyu Capital (Ex. 99.1) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Nov 3, 2025
  18. S23Form 8-K, Apr 2, 2026: China joint venture closing (Ex. 99.1) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Apr 2, 2026
  19. S24Form 8-K, May 15, 2026: further restructuring (Item 2.05) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · May 15, 2026
  20. S25Form 8-K, May 20, 2026: settlement of note tender offers (Item 8.01) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · May 20, 2026
  21. S27Form 8-K, Sep 24, 2026: North America coffeehouse closures (Items 2.05, 7.01) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Sep 24, 2026
  22. S28Form 8-K, Mar 30, 2026: 2026 annual meeting vote results (Item 5.07) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Mar 30, 2026
  23. S29Free writing prospectus (pricing term sheet), $1.75 billion senior notes, May 6, 2025 · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · May 7, 2025
  24. S30Form 8-K, Jun 16, 2025: $3.0 billion revolving credit agreement (Item 1.01) · Starbucks Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jun 16, 2025
  25. S31Schedule 13G/A, The Vanguard Group (event Mar 13, 2026) · The Vanguard Group (SEC EDGAR) · Tier 1: company or exchange filing · Mar 27, 2026
  26. S32Schedule 13G, Vanguard Capital Management (event Mar 31, 2026) · Vanguard Capital Management (SEC EDGAR) · Tier 1: company or exchange filing · Apr 30, 2026
  27. S33Schedule 13G/A, Capital Research Global Investors (event Mar 31, 2026) · Capital Research Global Investors (SEC EDGAR) · Tier 1: company or exchange filing · May 14, 2026
  28. S34Schedule 13G/A, Capital World Investors (event Mar 31, 2026) · Capital World Investors (SEC EDGAR) · Tier 1: company or exchange filing · May 14, 2026
  29. S35Schedule 13G/A, Capital World Investors (event Jun 30, 2026) · Capital World Investors (SEC EDGAR) · Tier 1: company or exchange filing · Aug 12, 2026
  30. S36Nasdaq historical quotes for SBUX (closing price Nov 5, 2026) · Nasdaq · Tier 1: company or exchange filing · Nov 5, 2026
  31. S38EDGAR submissions index for CIK 0000829224 · SEC EDGAR · Tier 1: company or exchange filing · Nov 6, 2026
Changes to this page (v1 · Nov 6, 2026)
  1. v1 · Nov 6, 2026First version, through Q4 FY2026 (quarter ended Sep 27, 2026), with FY2026 figures from the unaudited Oct 29, 2026 earnings release. (first version)

Numbers come only from tier 1 and tier 2 sources. Read how we research.

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All information is taken from publicly available sources, mainly company filings with the SEC, which are listed on each page with dates. We work to keep it accurate and correct errors publicly, but we do not guarantee that it is complete, accurate or up to date. Any market price or price-based ratio shown is dated, may be out of date by the time you read it, and is included only to explain concepts.

Statements by company management, including forward-looking statements and guidance, are reported as the company's statements, with their date and source; they are not our forecasts. Adjusted (non-GAAP) figures are the company's own measures and are shown next to the official (GAAP) figures.