Starbucks Corporation is a leading global roaster, marketer, and retailer of specialty coffee, operating in 87 markets worldwide. The company sells high-quality coffees, teas, and other beverages, along with a variety of food items through its company-operated stores. Additionally, Starbucks licenses its trademarks through other channels, such as licensed stores and grocery and foodservice partnerships, primarily through the Global Coffee Alliance with Nestlé .
- Beverages - Offers a wide range of high-quality coffees, teas, and other beverages, which are the primary revenue drivers.
- Food Items - Provides a variety of food options, complementing its beverage offerings.
- Other Products - Includes packaged and single-serve coffees and teas, royalty and licensing revenues, and beverage-related ingredients.
- North America Segment - Encompasses operations in the U.S. and Canada, contributing significantly to the company's overall revenue.
- International Segment - Covers markets such as China, Japan, and Europe, expanding Starbucks' global presence.
- Channel Development Segment - Focuses on packaged coffee and ready-to-drink beverages, extending Starbucks' reach beyond its stores.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Brad Lerman Executive | EVP and Chief Legal Officer | Board Member at McKesson Corporation | Joined Starbucks in 2023. Former General Counsel at Medtronic and Fannie Mae. Leads Starbucks' Legal and Corporate Affairs organization. | |
Brady Brewer Executive | CEO of Starbucks International | None | Joined Starbucks in 2001. Former Chief Marketing Officer and COO of Starbucks Japan. Oversees international operations and global channel development. | |
Brian Niccol Executive | Chairman and CEO | Board Member at Walmart Inc. | Former CEO of Chipotle and Taco Bell, joined Starbucks as Chairman and CEO in 2024. Known for driving growth and innovation in the restaurant industry. | View Report → |
Rachel Ruggeri Executive | EVP and CFO | Board Member at Stryker Corporation | Longtime Starbucks leader, joined in 2001. Promoted to CFO in 2021. Previously held senior finance roles at Starbucks and Continental Mills. | |
Andy Campion Board | Director | Executive Chairman and CEO of Unrivaled Sports; Board Member at Williams-Sonoma, Inc. | Former COO of Nike. Brings expertise in global brand growth, operational excellence, and sustainability. | |
Beth Ford Board | Director | CEO of Land O'Lakes, Inc.; Board Member at Business Roundtable and Columbia University | CEO of Land O'Lakes since 2018. Recognized for leadership in sustainability and agribusiness. | |
Daniel Servitje Board | Director | CEO of Grupo Bimbo; Chair of Corporación Aura Solar | CEO of Grupo Bimbo since 1997. Leads the world’s largest baking company. Focused on sustainability and global business growth. | |
Jørgen Vig Knudstorp Board | Director | Special Partner at KIRKBI Group; Chair of BrainPOP & KIRKBI Education | Former CEO of LEGO Group. Known for brand development and sustainability efforts. | |
Mellody Hobson Board | Chair of the Board (through 2025 AGM) | Co-CEO of Ariel Investments; Board Member at JPMorgan Chase & Co. | Chair of Starbucks since 2021. Known for her expertise in corporate governance and financial markets. Will step down after the 2025 Annual Meeting of Shareholders. | |
Mike Sievert Board | Director | CEO of T-Mobile US, Inc. | CEO of T-Mobile since 2020. Known for leading the Sprint merger and expanding T-Mobile's 5G network. | |
Neal Mohan Board | Director | CEO of YouTube; Board Member at 23andMe Holding Co. | CEO of YouTube since 2023. Former Chief Product Officer at YouTube and SVP at Google. Brings expertise in digital marketing and innovation. | |
Ritch Allison Board | Director | Board Member at Kenvue, Inc. | Former CEO of Domino's Pizza. Expanded Domino's into 20+ countries and grew its global footprint. | |
Wei Zhang Board | Director | Board Member at Ralph Lauren Corporation | Former President of Alibaba Pictures Group. Brings expertise in global operations, e-commerce, and digital transformation. |
- You emphasized the need to ensure high-quality, handcrafted beverages are prepared quickly and handed directly to customers by baristas; how do you plan to address staffing issues and bottlenecks to improve operational efficiency during peak hours?
- With the acknowledgment that Mobile Order & Pay has been overwhelming the café experience, what specific strategies are you implementing to refine this service without compromising customer convenience?
- You mentioned the necessity to fix your pricing architecture and simplify an overly complex menu; how will these changes impact your product offerings and the overall customer perception of value?
- Given the challenges in returning Starbucks China to growth and improving international business performance, what are your plans to address these international market issues, and what timelines are you anticipating for improvement?
- You stated that focusing on Starbucks Rewards customers has led to neglecting communication with all customers; how will your marketing approach change to re-engage with the broader customer base, and what metrics will you use to measure success?
Research analysts who have asked questions during STARBUCKS earnings calls.
Andrew Charles
TD Cowen
7 questions for SBUX
David Palmer
Evercore ISI
7 questions for SBUX
David Tarantino
Robert W. Baird & Co.
7 questions for SBUX
Jeffrey Bernstein
Barclays
7 questions for SBUX
John Ivankoe
JPMorgan Chase & Co.
7 questions for SBUX
Brian Harbour
Morgan Stanley
6 questions for SBUX
Danilo Gargiulo
AllianceBernstein
6 questions for SBUX
Lauren Silberman
Deutsche Bank
6 questions for SBUX
Sara Senatore
Bank of America
6 questions for SBUX
Christine Cho
Goldman Sachs Group
5 questions for SBUX
Jon Tower
Citigroup
5 questions for SBUX
Peter Saleh
BTIG
3 questions for SBUX
Andy Barish
Jefferies
2 questions for SBUX
Chris O'cull
Stifel Financial Corp
2 questions for SBUX
Chris O'Cull
Stifel
2 questions for SBUX
Christopher O'Cull
Stifel, Nicolaus & Company
2 questions for SBUX
Hyun Jin Cho
Goldman Sachs
2 questions for SBUX
Katherine Griffin
Bank of America
1 question for SBUX
Sharon Zackfia
William Blair & Company
1 question for SBUX
Zachary Fadem
Wells Fargo
1 question for SBUX
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
23.5 Degrees Topco Limited | 2025 | Starbucks acquired 100% ownership in 23.5 Degrees Topco Limited in Q1 fiscal 2025, converting 113 licensed stores to company-operated stores. The deal involved assets such as operating lease rights, intangibles, goodwill (adding $108.1 million), and property, plant, and equipment, contributing $27 million in incremental revenue without materially impacting consolidated financials. |
Evolution Fresh | 2022 | In May 2022, Starbucks agreed to sell the Evolution Fresh brand to Bolthouse Farms, with the transaction closing on August 1, 2022, and continued to sell its products in U.S. stores. This acquisition did not have a material impact on Starbucks’ consolidated financial statements. |
Recent press releases and 8-K filings for SBUX.
- 92% of participating baristas authorized an open-ended strike starting November 13, impacting approximately 550–650 company-operated stores in over 25 U.S. cities to press for better pay, staffing, scheduling, and to address alleged unfair labor practices.
- The union has filed more than 1,000 charges with the National Labor Relations Board over anti-union tactics, resulting in over 100 complaints against Starbucks.
- Starbucks reports its baristas earn an average base wage of $19 per hour, rising to over $30 per hour when including benefits such as health insurance, parental leave, and tuition assistance.
- CEO Brian Niccol is leading a $1 billion 'Back to Starbucks' turnaround plan—initiated in September 2024—that includes store closures and layoffs to counteract declining sales and foot traffic.
- NomadGo Inventory AI will integrate with Richtech Robotics’ two-armed mobile robot, Dex, to fully automate the inventory process from counting through restocking.
- The system uses millimeter-level precision 3D digital twins for shelf and product counts via smartphone or tablet, enabling accurate, on-device inventory management.
- This partnership aims to establish an autonomous closed-loop system that handles automatic replenishment, delivery validation, and restocking without manual intervention.
- NomadGo’s solution is already in use in over 11,000 Starbucks stores, enhancing supply chain visibility and product availability.
- Starbucks will form a joint venture in China with Boyu Capital, selling a 60% stake for approximately $4 billion while retaining 40% interest and licensing its brand and intellectual property.
- The partnership aims to expand Starbucks’ network of over 8,000 stores in China by entering new cities and enhancing customer experience through innovation and digital platforms.
- The deal values Starbucks’ China business at over $13 billion, reflecting sale proceeds, retained interest, and the net present value of ongoing licensing fees.
- Completion is targeted by Q2 of fiscal 2026 as Starbucks seeks to counteract pandemic-driven sales declines and intensified competition from local brands like Luckin Coffee.
- Under the agreement, Boyu Capital will acquire a 60% interest in Starbucks’ China retail operations for a cash-free, debt-free enterprise value of $4 billion, while Starbucks retains 40% ownership and continues to license its brand.
- Starbucks expects the total value of its China retail business to exceed $13 billion, comprised of sale proceeds, the value of its retained interest, and the net present value of licensing economics over the next decade.
- The joint venture will operate Starbucks’ existing 8,000 coffeehouses in China, with a shared goal to expand the network to 20,000 locations over time.
- Closing is anticipated in Q2 FY2026, subject to customary regulatory approvals.
- Global comps up 1% in the quarter ended Sept. 28 (North America flat; International +3% led by China)
- Revenue grew ~5–5.5% to $9.6 billion, but net income plunged ~85% to ~$133 million and adjusted EPS of $0.52 missed estimates, reflecting ~$1 billion of restructuring costs
- Closed 627 stores, cut corporate headcount by ~900, and saw margin compression amid labor and other turnaround investments; full guidance deferred until January
- Turnaround initiatives include extra staffing, new menu items, updated barista training, and tech upgrades, though management warns of a multi-year effort
- Consolidated revenue of $9.6 billion, up 5% year over year; global comparable store sales grew 1%, with North America flat and international up 3%.
- Earnings per share of $0.52 reflect ongoing investments in the Back to Starbucks strategy.
- U.S. delivery business grew nearly 30% in Q4 and surpassed $1 billion in fiscal year sales.
- Launched Green Apron Service across U.S. company-operated coffee houses; over 80% achieved café service times of four minutes or less, driving the first positive transaction comps in seven quarters.
- International segment delivered record Q4 revenue of $2.1 billion, full-year revenues of $7.8 billion, and opened 316 net new stores in the quarter.
- Q4 consolidated revenue: $9.6 billion, +5% y/y; EPS: $0.52, -34% y/y due to inflation and strategic investments
- Global comparable store sales grew 1% in Q4 (first positive in seven quarters); North America comps flat, International comps +3%
- Full rollout of Green Apron Service in U.S. drove café service times ≤4 minutes in >80% of locations; U.S. delivery sales +30% y/y, exceeding $1 billion for FY 2025
- Optimized portfolio with 107 net store closures in Q4 and ~70 store uplifts completed, targeting >1,000 by end of FY 2026
- Starbucks delivered 5% global revenue growth and 1% global comparable store sales growth, marking the first positive quarterly comps in seven quarters; North America comps were flat and International comps rose 3%, led by Japan, China, the U.K., and Mexico.
- Earnings per share in Q4 were $0.52, reflecting ongoing investments in the Back to Starbucks turnaround strategy.
- The “Back to Starbucks” plan—including scaling Green Apron Service, increasing staffing, and simplifying KPIs—drove sequential improvement in U.S. transaction comps, which turned positive in September and held through October.
- Starbucks announced an increase to its quarterly dividend, extending its streak to 15 consecutive years of dividend raises, underscoring confidence in long-term free cash flow generation.
- Q4 global net revenue was $9.6 B, up 5% YoY.
- Global comparable sales grew 1% (+3% International; 0% North America), marking the first comp growth in seven quarters.
- Q4 operating margin contracted by 500 bps to 9.4%, and diluted EPS declined 34% YoY to $0.52.
- Global store count reached 40,990, up 2% YoY, while FY25 net revenue was $37.2 B (+3% YoY) and EPS was $2.13 (–35% YoY).
- Starbucks delivered 1% global comparable store sales growth in Q4, its first in seven quarters, with flat U.S. comps and +3% International comps.
- Consolidated Q4 net revenues rose 5% to $9.6 billion, while GAAP EPS declined 85% to $0.12 and non-GAAP EPS fell 35% to $0.52.
- Q4 GAAP operating margin contracted 1,150 bps to 2.9%, with non-GAAP margin down 500 bps to 9.4%.
- The company closed 107 net stores in Q4 under its restructuring plan, ending the period with 40,990 global stores.
- The Board declared a $0.62 per share Q4 dividend, payable November 28, marking 62 consecutive quarters of payouts.