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    STARBUCKS (SBUX)

    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 .

    1. Beverages - Offers a wide range of high-quality coffees, teas, and other beverages, which are the primary revenue drivers.
    2. Food Items - Provides a variety of food options, complementing its beverage offerings.
    3. Other Products - Includes packaged and single-serve coffees and teas, royalty and licensing revenues, and beverage-related ingredients.
    4. North America Segment - Encompasses operations in the U.S. and Canada, contributing significantly to the company's overall revenue.
    5. International Segment - Covers markets such as China, Japan, and Europe, expanding Starbucks' global presence.
    6. Channel Development Segment - Focuses on packaged coffee and ready-to-drink beverages, extending Starbucks' reach beyond its stores.

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    NamePositionExternal RolesShort 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.

    1. 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?
    2. 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?
    3. 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?
    4. 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?
    5. 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

    5 questions for SBUX

    Also covers: BROS, CAVA, CMG +13 more

    David Palmer

    Evercore ISI

    5 questions for SBUX

    Also covers: BGS, BRBR, CAG +20 more

    David Tarantino

    Robert W. Baird & Co.

    5 questions for SBUX

    Also covers: ATKR, BROS, CAKE +17 more

    Jeffrey Bernstein

    Barclays

    5 questions for SBUX

    Also covers: BJRI, BLMN, BROS +21 more

    John Ivankoe

    JPMorgan Chase & Co.

    5 questions for SBUX

    Also covers: BLMN, BROS, CAKE +13 more

    Jon Tower

    Citigroup

    5 questions for SBUX

    Also covers: BJRI, BLMN, CAKE +17 more

    Brian Harbour

    Morgan Stanley

    4 questions for SBUX

    Also covers: BLMN, BROS, CAKE +20 more

    Danilo Gargiulo

    AllianceBernstein

    4 questions for SBUX

    Also covers: CAVA, CMG, DPZ +7 more

    Lauren Silberman

    Deutsche Bank

    4 questions for SBUX

    Also covers: BLMN, CAKE, CMG +13 more

    Sara Senatore

    Bank of America

    4 questions for SBUX

    Also covers: BLMN, BROS, CAKE +18 more

    Christine Cho

    Goldman Sachs Group

    3 questions for SBUX

    Also covers: BEP, BEPC, BLMN +21 more

    Peter Saleh

    BTIG

    3 questions for SBUX

    Also covers: BYND, CHEF, DPZ +12 more

    Chris O'cull

    Stifel Financial Corp

    2 questions for SBUX

    Also covers: BROS, CAVA, CMG +11 more

    Christopher O'Cull

    Stifel, Nicolaus & Company

    2 questions for SBUX

    Also covers: BROS, CAVA, CMG +13 more

    Hyun Jin Cho

    Goldman Sachs

    2 questions for SBUX

    Also covers: CMG, DRI, EAT +6 more

    Katherine Griffin

    Bank of America

    1 question for SBUX

    Also covers: CAKE, CBRL, DRI +4 more

    Sharon Zackfia

    William Blair & Company

    1 question for SBUX

    Also covers: BIRK, BJRI, BROS +16 more

    Zachary Fadem

    Wells Fargo

    1 question for SBUX

    Also covers: AAP, AZO, CMG +11 more
    Program DetailsProgram 1
    Approval DateMarch 15, 2022
    End Date/DurationN/A
    Total additional amountUp to 40 million shares
    Remaining authorization amount29.8 million shares as of September 29, 2024
    DetailsProgram was temporarily suspended on April 4, 2022, and resumed in the first quarter of fiscal 2023
    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2025$1,250.0 August 2025 Notes3.800 8.0% = (1,250.0 / 15,700.0) * 100
    2026$1,000.0 February 2026 Notes4.750 6.4% = (1,000.0 / 15,700.0) * 100
    2026$500.0 June 2026 Notes2.450 3.2% = (500.0 / 15,700.0) * 100
    2027$1,000.0 February 2027 Notes4.850 6.4% = (1,000.0 / 15,700.0) * 100
    2027$500.0 March 2027 Notes2.000 3.2% = (500.0 / 15,700.0) * 100
    2028$600.0 March 2028 Notes3.500 3.8% = (600.0 / 15,700.0) * 100
    2028$750.0 November 2028 Notes4.000 4.8% = (750.0 / 15,700.0) * 100
    2029$1,000.0 August 2029 Notes3.550 6.4% = (1,000.0 / 15,700.0) * 100
    2030$750.0 March 2030 Notes2.250 4.8% = (750.0 / 15,700.0) * 100
    2030$1,250.0 November 2030 Notes2.550 8.0% = (1,250.0 / 15,700.0) * 100
    2031$500.0 February 2031 Notes4.900 3.2% = (500.0 / 15,700.0) * 100
    2032$1,000.0 February 2032 Notes3.000 6.4% = (1,000.0 / 15,700.0) * 100
    2033$500.0 February 2033 Notes4.800 3.2% = (500.0 / 15,700.0) * 100
    2034$500.0 February 2034 Notes5.000 3.2% = (500.0 / 15,700.0) * 100
    2045$350.0 June 2045 Notes4.300 2.2% = (350.0 / 15,700.0) * 100
    2047$500.0 December 2047 Notes3.750 3.2% = (500.0 / 15,700.0) * 100
    2048$1,000.0 November 2048 Notes4.500 6.4% = (1,000.0 / 15,700.0) * 100
    2049$1,000.0 August 2049 Notes4.450 6.4% = (1,000.0 / 15,700.0) * 100
    2050$500.0 March 2050 Notes3.350 3.2% = (500.0 / 15,700.0) * 100
    2050$1,250.0 November 2050 Notes3.500 8.0% = (1,250.0 / 15,700.0) * 100
    NameStart DateEnd DateReason for Change
    Deloitte & Touche LLP1987 PresentCurrent auditor

    Notable M&A activity and strategic investments in the past 3 years.

    CompanyYearDetails

    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.

    Starbucks launches 4-minute order plan amid sales decline
    ·$SBUX
    New Projects/Investments
    Demand Weakening
    • Starbucks has unveiled the Green Apron Service initiative to cut order-to-delivery times to four minutes or less, investing over $500 million in additional labor and deploying Smart Queue technology across U.S. stores.
    • CEO Brian Niccol plans to phase out or convert 80–90 mobile order–only locations by fiscal 2026 to restore the human connection central to the brand.
    • Despite a 3.8% revenue increase to $9.46 billion, same-store sales fell 2% for the sixth consecutive quarter, and the share price is down nearly 2% over the past year.
    • Early results from about 1,500 pilot stores show faster service, higher transactions, and improved customer satisfaction, generating cautious optimism among analysts.
    Aug 13, 2025, 11:57 PM
    Starbucks and McDonald's receive sell ratings on valuation concerns
    ·$SBUX
    Demand Weakening
    • Melius Research initiated a sell rating on Starbucks with an $80 price target, implying 16% downside.
    • The firm also initiated a sell rating on McDonald's with a $250 price target, implying 17% downside.
    • Analysts argue that pricing has outpaced consumer experience, eroding value perception at both brands.
    • A cost-per-calorie analysis shows McDonald's pricing is in line with fast-casual peers, intensifying the value challenge.
    • Melius Research’s coverage now extends from retail food to restaurants, emphasizing value perception across channels.
    Jul 14, 2025, 6:17 PM
    Starbucks warns Brazil coffee tariffs could dent profitability
    ·$SBUX
    Profit Warning
    • President Trump’s 50% tariff on Brazilian coffee imports effective August 1 is hard to circumvent given Brazil supplies 22% of U.S. coffee imports in 2024.
    • TD Cowen estimates a 1.5–2% hit to Starbucks’ profitability if no mitigation measures are taken.
    • Starbucks may use alternative coffee blends and leverage its vertical integration to absorb tariff costs instead of raising consumer prices.
    • Starbucks’ iced beverages account for about two-thirds of its U.S. drink sales, supported by strong loyalty and digital programs, which could help offset margin pressure.
    Jul 11, 2025, 3:39 PM
    Starbucks considers partial China stake sale
    ·$SBUX
    M&A
    • Plans: Starbucks is exploring a partial sale of its China arm valued up to $10 billion, retaining a 30% stake and divesting the remainder to multiple investors.
    • Bidders: Nearly 30 private equity firms, including Centurium Capital, Hillhouse Capital, Carlyle Group and KKR, have submitted non-binding offers ranging from $5 billion to $10 billion.
    • Strategic review: Advised by Goldman Sachs, Starbucks expects to shortlist potential buyers within two months, though the transaction is unlikely to close this year.
    • Market context: Starbucks’ China business—over 8% of global revenue—has seen market share fall from 34% in 2019 to 14% in 2024 amid rising local competition.
    Jul 8, 2025, 10:02 PM
    Starbucks expands board with Mayer, Moyo
    ·$SBUX
    Board Change
    Debt Issuance
    • Board expanded from nine to eleven members with the appointments of Dr. Dambisa Moyo and Marissa Mayer, effective June 25, 2025.
    • Moyo brings over 30 years in macroeconomics and international affairs, leadership at Versaca Investments, and roles at Goldman Sachs, the World Bank, and major corporate boards.
    • Mayer, founder and CEO of Sunshine AI, adds 20+ years in consumer technology from Yahoo! and Google, plus board experience at Walmart, AT&T, and Hilton Hotels & Resorts.
    • These hires bolster the “Back to Starbucks” strategy on technology, transformation, and global affairs; the company also secured a $3 billion revolving credit facility maturing in 2030.
    Jun 27, 2025, 12:00 AM
    Starbucks denies sale of China business
    ·$SBUX
    • President Trump criticized Israel and Iran over ceasefire breaches, while oil prices dropped nearly 4%, as traders unwound conflict-driven trades.
    • Fed Chair Jerome Powell said the Fed is “well positioned to wait” on rate cuts until tariff impacts on growth and inflation are clear.
    • Starbucks denied reports it would sell its China business and announced price cuts on tea-based drinks in China to drive sales.
    Jun 24, 2025, 3:49 PM
    Starbucks enters $3 billion revolving credit facility
    ·$SBUX
    Debt Issuance
    • On June 13, 2025, Starbucks Corp. entered a $3.0 billion unsecured revolving credit facility maturing June 13, 2030, with a $150 million letter of credit sublimit.
    • Borrowings bear interest based on the Secured Overnight Financing Rate (Term SOFR) or Base Rate plus a margin tied to the company’s credit ratings; upon default, the rate increases by 2%.
    • The facility requires a minimum fixed charge coverage ratio of 2.50 to 1.00, contains customary events of default and allows an optional $1.0 billion accordion feature.
    Jun 16, 2025, 12:00 AM
    Starbucks cuts China drink prices amid competition
    ·$SBUX
    Demand Weakening
    • Starbucks has reduced prices on over 20 iced and tea-based drinks in China by an average of 5 yuan, with some now priced as low as 23 yuan, to attract more afternoon customers.
    • The price cuts coincide with a period of deflation in China and intensified rivalry from domestic chains like Luckin Coffee and Manner Coffee, which offer lower-priced options.
    • Starbucks emphasizes the move as part of a long-term growth plan rather than a response to a price war, according to Chief Growth Officer Yang Zhen.
    • The company also opened a proprietary roasting plant in Kunshan to bolster its local production capabilities.
    Jun 9, 2025, 3:48 AM
    Starbucks reinstates COO role and names Mike Grams
    ·$SBUX
    Management Change
    Executive Compensation
    • Starbucks has reinstated the COO role and appointed Mike Grams, effective immediately, with responsibilities for North American coffeehouses, global expansion, and the supply chain; his base salary increases from $700,000 to $900,000 and bonus target to 125% of salary.
    • Grams, who joined Starbucks in February 2025, brings nearly 30 years of experience at Taco Bell, including serving as President and COO from 2020 to 2024.
    • Chief Legal Officer Brad Lerman is stepping down under the company’s “without cause” provisions and will receive full severance benefits.
    • Starbucks also realigned its executive structure—having the CTO report to the new CFO—to accelerate technology deployment as part of broader turnaround efforts under CEO Brian Niccol.
    Jun 4, 2025, 10:18 PM
    Starbucks Announces Organizational Changes
    ·$SBUX
    Management Change
    • Mike Grams promoted to COO with expanded responsibilities for global coffeehouse development and supply chain oversight.
    • Integration of the Global Coffee and Sustainability team with the Global Brand team, and a reporting change with Deb Hall Lefevre now under CFO Cathy Smith.
    • Announcement of Brad Lerman's upcoming departure as chief legal officer, with plans underway to identify his successor.
    Jun 4, 2025, 12:00 AM