Starbucks — research brief (BMC #092 on gallery, queue id 176)

Prepared 2026-10-12 (America/Chicago). Starbucks Corporation is public (Nasdaq: SBUX), headquartered in Seattle, WA. Fiscal year ends on the Sunday closest to Sep 30: FY2025 = 52 weeks ended Sep 28, 2025. Figures are labeled by Starbucks' own fiscal year, not converted to calendar years. FY2026 ended ~Sep 27, 2026, but results had not been reported as of this brief, so FY2025 is the latest full year. Labels: FACT = stated by Starbucks in SEC filings, earnings releases, its own earnings-call transcripts or press releases. SECONDARY = third-party press. INFERENCE = interpretation by this project.

Sources (accessed 2026-10-12)

Form 10-K FY2025: https://s203.q4cdn.com/326826266/files/doc_financials/2025/q4/SBUX-9-28-2025-10-K-FINAL.pdf
Q4 and full fiscal year 2025 results release (Oct 29, 2025, Ex. 99.1): https://s203.q4cdn.com/326826266/files/doc_financials/2025/q4/SBUX-09-28-2025-Exhibit-99-1.pdf
Q3 fiscal 2026 results release (Jul 29, 2026): https://www.sec.gov/Archives/edgar/data/829224/000082922426000129/sbux-06282026xearningsrele.htm
Q3 FY26 earnings call transcript (Starbucks IR): https://s203.q4cdn.com/326826266/files/doc_financials/2026/q3/Q3-FY26-SBUX-Transcript.pdf
Q2 FY26 earnings call transcript (Starbucks IR): https://s203.q4cdn.com/326826266/files/doc_financials/2026/q2/Q2-FY26-SBUX-Transcript.pdf
Reimagined loyalty program unveiled (Jan 29, 2026; 35.5M active members Q1 FY26): https://investor.starbucks.com/news/financial-releases/news-details/2026/Starbucks-Unveils-Reimagined-Loyalty-Program-to-Deliver-More-Meaningful-Value-Personalization-and-Engagement-for-Members/default.aspx
Rewards relaunch (Mar 10, 2026; Green/Gold/Reserve, 60-Star $2 off, Free Mod Monday): https://about.starbucks.com/press/2026/reimagined-starbucks-rewards-loyalty-program-launches-with-new-member-benefits/
Logo: project monogram ("S" on a green tile), not Starbucks' official Siren mark. Trademark of its owner; identification only.

Teaching arc

Starbucks is mostly a company-run retailer: it keeps the whole price of every drink in its ~21,500 own stores (82.7% of revenue) and pays all the labor and rent. Around that core it rents out the brand — to licensees who pay a product margin plus royalty, to Nestlé for grocery coffee (a ~$7B prepaid royalty), and since April 2026 to a China joint venture — which earns less revenue per store but more margin. Preloaded Starbucks Cards and the Rewards app lock in the habit and bring cash in before the sale. FY2025 was the bottom of a turnaround: revenue +2.8% but net income halved; by Q3 FY26 comps were +7.9%.

Key figures (FACT unless labeled)

FY2025 total net revenues $37,184.4M vs $36,176.2M FY2024 (+2.8%; +2.9% constant currency). Company-operated stores $30,744.8M (82.7%), licensed stores $4,350.4M (11.7%), other $2,089.2M (5.6%).
Segments FY2025: North America $27,373.1M (74%; op. income $3,156.7M, 11.5% margin); International $7,819.9M (21%; $950.0M, 12.1%); Channel Development $1,871.7M (5%; $885.1M, 47.3%); Corporate and Other $119.7M revenue.
FY2025 operating income $2,936.6M (7.9% margin vs 15.0%); net earnings attributable to Starbucks $1,856.4M (−50.6% vs $3,760.9M); diluted EPS $1.63 (non-GAAP $2.13). Restructuring and impairments $892.0M.
FY2025 costs: product and distribution $11,658.2M (31.4%); store operating expenses $17,058.9M (45.9% of revenue; 55.5% of company-operated store revenue vs 51.4%); other operating $584.6M; D&A $1,684.7M; G&A $2,617.2M; income from equity investees $247.8M. Capex (additions to PP&E) $2,305.5M.
Comparable store sales FY2025: global −1%, North America and US −2%, International flat, China −1%. Q4 FY25 global +1%.
Stores at Sep 28, 2025: 40,990 — company-operated 21,514 (NA 11,018; Intl 10,496), licensed 19,476 (NA 7,293; Intl 12,183). US 16,864; China 8,011. 627 stores closed in Q4 FY25 under the Sep 25, 2025 restructuring plan (>90% in North America). 89 markets.
Store sales mix FY2025 (company-operated): beverages 73%, food 23%, other 4%.
Licensed model: Starbucks earns a margin on products and supplies sold to the licensee plus a royalty on retail sales; licensees bear operating costs and capital; lower gross margin, higher operating margin (10-K).
Stored value / loyalty (10-K Note 11): FY2025 card activations, reloads and Stars earned $15,245.8M; redemptions and breakage recognized $15,199.5M; balance $1,751.7M at Sep 28, 2025 (~$1.6B current). Breakage FY2025 $200.4M (company-operated) + $22.0M (licensed) = $222.4M. Stars generally expire after 6–12 months by market.
Nestlé Global Coffee Alliance (2018): ~$7B up-front prepaid royalty recognized straight-line over 40 years; $176.5M recognized each year; deferred balance $177.0M current + $5.6B long-term at Sep 28, 2025. Nestlé royalties otherwise based on a percentage of reported sales. Ready-to-drink with PepsiCo (North American Coffee Partnership JV) and Nestlé.
People: ~381,000 employees at Sep 28, 2025; ~223,000 in the US (~214,000 in company-operated stores); ~6% of US company-operated stores unionized.
Ten farmer support centers; hedges with fixed-price and price-to-be-fixed contracts, futures and collars; green coffee prices up significantly over the last two years (10-K).
China: agreement Nov 3, 2025 with Boyu Capital (up to 60% of China retail; Starbucks keeps 40% and licenses brand/IP; ~$4B enterprise value). Closed in April 2026 (Q3 FY26 release).
Rewards: 35.5M 90-day active US members in Q1 FY26 (record); 35.6M Q2 FY26 (+4% YoY); 35.8M Q3 FY26. New Green/Gold/Reserve program launched Mar 10, 2026; 60-Star $2-off reward ~1/3 of redemptions (Q2 FY26 call).
2026 (not full-year; never annualized): Q3 FY26 (13 weeks ended Jun 28, 2026) revenue $9,322.7M (−1.4%), global comps +7.9% (transactions +4.2%, ticket +3.5%), US comps +7.9%; GAAP operating margin 10.5%; net earnings $1,045.3M including a $536.3M net gain on the China transaction; GAAP EPS $0.91. 41,304 stores (33% company-operated, 67% licensed). Tender offers for ~$1.3B of notes. IEEPA tariff refunds received. FY2026 guidance: revenue flat to slight growth; non-GAAP operating margin >11%; non-GAAP EPS $2.55–$2.65; 600–650 net new coffeehouses.

Worked example (INFERENCE)

At FY2025 end Starbucks held $1.75B of card balances and Stars against $15.2B loaded/earned during the year, so on average money sits on a card roughly six weeks (1.75 ÷ 15.25 × 52) before it is spent — a modest but permanent interest-free float, plus $222.4M of breakage.

Atlas notes

primaryTag: retail/DTC — company-operated store sales are $30.74B, 82.7% of FY2025 revenue; licensing/royalties (licensed stores 11.7%, Channel Development) are secondary engines.
Ranks on FY2025 revenue $37.18B (+2.8%), FY2025 net income $1.86B (reported as net earnings attributable to Starbucks).

Not used

Analyst estimates, market cap, third-party traffic data, average drink prices (vary by market and are not disclosed), and any annualizing of FY2026 quarters.

# Starbucks — research brief (BMC #092 on gallery, queue id 176) Prepared 2026-10-12 (America/Chicago). Starbucks Corporation is **public** (Nasdaq: SBUX), headquartered in Seattle, WA. **Fiscal year ends on the Sunday closest to Sep 30**: FY2025 = 52 weeks ended Sep 28, 2025. Figures are labeled by Starbucks' own fiscal year, not converted to calendar years. FY2026 ended ~Sep 27, 2026, but results had not been reported as of this brief, so FY2025 is the latest full year. Labels: **FACT** = stated by Starbucks in SEC filings, earnings releases, its own earnings-call transcripts or press releases. **SECONDARY** = third-party press. **INFERENCE** = interpretation by this project. ## Sources (accessed 2026-10-12) - Form 10-K FY2025: https://s203.q4cdn.com/326826266/files/doc_financials/2025/q4/SBUX-9-28-2025-10-K-FINAL.pdf - Q4 and full fiscal year 2025 results release (Oct 29, 2025, Ex. 99.1): https://s203.q4cdn.com/326826266/files/doc_financials/2025/q4/SBUX-09-28-2025-Exhibit-99-1.pdf - Q3 fiscal 2026 results release (Jul 29, 2026): https://www.sec.gov/Archives/edgar/data/829224/000082922426000129/sbux-06282026xearningsrele.htm - Q3 FY26 earnings call transcript (Starbucks IR): https://s203.q4cdn.com/326826266/files/doc_financials/2026/q3/Q3-FY26-SBUX-Transcript.pdf - Q2 FY26 earnings call transcript (Starbucks IR): https://s203.q4cdn.com/326826266/files/doc_financials/2026/q2/Q2-FY26-SBUX-Transcript.pdf - Reimagined loyalty program unveiled (Jan 29, 2026; 35.5M active members Q1 FY26): https://investor.starbucks.com/news/financial-releases/news-details/2026/Starbucks-Unveils-Reimagined-Loyalty-Program-to-Deliver-More-Meaningful-Value-Personalization-and-Engagement-for-Members/default.aspx - Rewards relaunch (Mar 10, 2026; Green/Gold/Reserve, 60-Star $2 off, Free Mod Monday): https://about.starbucks.com/press/2026/reimagined-starbucks-rewards-loyalty-program-launches-with-new-member-benefits/ - Logo: project monogram ("S" on a green tile), **not** Starbucks' official Siren mark. Trademark of its owner; identification only. ## Teaching arc **Starbucks is mostly a company-run retailer: it keeps the whole price of every drink in its ~21,500 own stores (82.7% of revenue) and pays all the labor and rent. Around that core it rents out the brand — to licensees who pay a product margin plus royalty, to Nestlé for grocery coffee (a ~$7B prepaid royalty), and since April 2026 to a China joint venture — which earns less revenue per store but more margin. Preloaded Starbucks Cards and the Rewards app lock in the habit and bring cash in before the sale. FY2025 was the bottom of a turnaround: revenue +2.8% but net income halved; by Q3 FY26 comps were +7.9%.** ## Key figures (FACT unless labeled) - **FY2025 total net revenues $37,184.4M** vs $36,176.2M FY2024 (**+2.8%**; +2.9% constant currency). Company-operated stores $30,744.8M (82.7%), licensed stores $4,350.4M (11.7%), other $2,089.2M (5.6%). - Segments FY2025: North America $27,373.1M (74%; op. income $3,156.7M, 11.5% margin); International $7,819.9M (21%; $950.0M, 12.1%); Channel Development $1,871.7M (5%; $885.1M, 47.3%); Corporate and Other $119.7M revenue. - FY2025 operating income **$2,936.6M** (7.9% margin vs 15.0%); **net earnings attributable to Starbucks $1,856.4M** (−50.6% vs $3,760.9M); diluted EPS $1.63 (non-GAAP $2.13). Restructuring and impairments $892.0M. - FY2025 costs: product and distribution $11,658.2M (31.4%); store operating expenses $17,058.9M (45.9% of revenue; 55.5% of company-operated store revenue vs 51.4%); other operating $584.6M; D&A $1,684.7M; G&A $2,617.2M; income from equity investees $247.8M. Capex (additions to PP&E) $2,305.5M. - Comparable store sales FY2025: global −1%, North America and US −2%, International flat, China −1%. Q4 FY25 global +1%. - Stores at Sep 28, 2025: **40,990** — company-operated 21,514 (NA 11,018; Intl 10,496), licensed 19,476 (NA 7,293; Intl 12,183). US 16,864; China 8,011. 627 stores closed in Q4 FY25 under the Sep 25, 2025 restructuring plan (>90% in North America). 89 markets. - Store sales mix FY2025 (company-operated): beverages 73%, food 23%, other 4%. - Licensed model: Starbucks earns a margin on products and supplies sold to the licensee plus a royalty on retail sales; licensees bear operating costs and capital; lower gross margin, higher operating margin (10-K). - Stored value / loyalty (10-K Note 11): FY2025 card activations, reloads and Stars earned $15,245.8M; redemptions and breakage recognized $15,199.5M; balance $1,751.7M at Sep 28, 2025 (~$1.6B current). Breakage FY2025 $200.4M (company-operated) + $22.0M (licensed) = $222.4M. Stars generally expire after 6–12 months by market. - Nestlé Global Coffee Alliance (2018): ~$7B up-front prepaid royalty recognized straight-line over 40 years; $176.5M recognized each year; deferred balance $177.0M current + $5.6B long-term at Sep 28, 2025. Nestlé royalties otherwise based on a percentage of reported sales. Ready-to-drink with PepsiCo (North American Coffee Partnership JV) and Nestlé. - People: ~381,000 employees at Sep 28, 2025; ~223,000 in the US (~214,000 in company-operated stores); ~6% of US company-operated stores unionized. - Ten farmer support centers; hedges with fixed-price and price-to-be-fixed contracts, futures and collars; green coffee prices up significantly over the last two years (10-K). - China: agreement Nov 3, 2025 with Boyu Capital (up to 60% of China retail; Starbucks keeps 40% and licenses brand/IP; ~$4B enterprise value). Closed in April 2026 (Q3 FY26 release). - Rewards: 35.5M 90-day active US members in Q1 FY26 (record); 35.6M Q2 FY26 (+4% YoY); **35.8M Q3 FY26**. New Green/Gold/Reserve program launched Mar 10, 2026; 60-Star $2-off reward ~1/3 of redemptions (Q2 FY26 call). - 2026 (not full-year; never annualized): Q3 FY26 (13 weeks ended Jun 28, 2026) revenue $9,322.7M (−1.4%), global comps +7.9% (transactions +4.2%, ticket +3.5%), US comps +7.9%; GAAP operating margin 10.5%; net earnings $1,045.3M including a $536.3M net gain on the China transaction; GAAP EPS $0.91. 41,304 stores (33% company-operated, 67% licensed). Tender offers for ~$1.3B of notes. IEEPA tariff refunds received. FY2026 guidance: revenue flat to slight growth; non-GAAP operating margin >11%; non-GAAP EPS $2.55–$2.65; 600–650 net new coffeehouses. ## Worked example (INFERENCE) At FY2025 end Starbucks held $1.75B of card balances and Stars against $15.2B loaded/earned during the year, so on average money sits on a card roughly six weeks (1.75 ÷ 15.25 × 52) before it is spent — a modest but permanent interest-free float, plus $222.4M of breakage. ## Atlas notes - primaryTag: **retail/DTC** — company-operated store sales are $30.74B, 82.7% of FY2025 revenue; licensing/royalties (licensed stores 11.7%, Channel Development) are secondary engines. - Ranks on FY2025 revenue $37.18B (+2.8%), FY2025 net income $1.86B (reported as net earnings attributable to Starbucks). ## Not used - Analyst estimates, market cap, third-party traffic data, average drink prices (vary by market and are not disclosed), and any annualizing of FY2026 quarters.