Starbucks 10-Q: Q1 FY25 Financials & Operations

TL;DR

Starbucks 10-Q filed. Q1 FY25 numbers in. Check financials & store growth.

AI Summary

Starbucks Corporation filed its 10-Q for the period ending December 29, 2024. The filing details financial performance and operational data for the first quarter of fiscal year 2025. Key financial metrics and unit counts for company-operated and franchised stores are presented, alongside information on securities and hedging activities.

Why It Matters

This filing provides investors with a quarterly update on Starbucks' financial health and store growth, crucial for understanding the company's performance in the competitive food and beverage market.

Risk Assessment

Risk Level: medium — The filing contains standard financial disclosures for a public company, but the nature of the retail and food service industry can be subject to economic fluctuations and consumer trends.

Key Numbers

• 92 — Public Documents (Number of documents included in the filing)
• 2024-12-29 — Period End Date (The end date for the reporting period)
• 2025-01-28 — Filing Date (The date the 10-Q was submitted to the SEC)

Key Players & Entities

• STARBUCKS CORP (company) — Filer
• 2024-12-29 (date) — Reporting period end date
• 2025-01-28 (date) — Filing date

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value per share SBUX Nasdaq Global

Filing Documents

• sbux-20241229.htm (10-Q) — 1728KB
• sbux-12292024xexhibit311.htm (EX-31.1) — 10KB
• sbux-12292024xexhibit312.htm (EX-31.2) — 10KB
• sbux-12292024xexhibit32.htm (EX-32) — 7KB
• sbux-20241229_g1.jpg (GRAPHIC) — 516KB
• 0000829224-25-000014.txt ( ) — 12083KB
• sbux-20241229.xsd (EX-101.SCH) — 75KB
• sbux-20241229_cal.xml (EX-101.CAL) — 110KB
• sbux-20241229_def.xml (EX-101.DEF) — 454KB
• sbux-20241229_lab.xml (EX-101.LAB) — 930KB
• sbux-20241229_pre.xml (EX-101.PRE) — 679KB
• sbux-20241229_htm.xml (XML) — 1857KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1 Financial Statements (Unaudited) 3 Consolidated Statements of Earnings 3 Consolidated Statements of Comprehensive Income 4 Consolidated Balance Sheets 5 Consolidated Statements of Cash Flows 6 Consolidated Statements of Equity 7 Index for Notes to Consolidated Financial Statements 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 3 Quantitative and Qualitative Disclosures About Market Risk 34

Controls and Procedures

Item 4 Controls and Procedures 35

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1 Legal Proceedings 36

Risk Factors

Item 1A Risk Factors 36

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 36

Defaults Upon Senior Securities

Item 3 Defaults Upon Senior Securities 36

Mine Safety Disclosures

Item 4 Mine Safety Disclosures 36

Other Information

Item 5 Other Information 36

Signatures

Signatures 38 Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except per share data, unaudited) Quarter Ended Dec 29, 2024 Dec 31, 2023 Net revenues: Company-operated stores $ 7,785.3 $ 7,755.2 Licensed stores 1,135.7 1,192.1 Other 476.8 478.0 Total net revenues 9,397.8 9,425.3 Product and distribution costs 2,893.7 2,980.6 Store operating expenses 4,203.0 3,851.5 Other operating expenses 152.5 150.4 Depreciation and amortization expenses 407.6 365.3 General and administrative expenses 665.8 648.0 Total operating expenses 8,322.6 7,995.8 Income from equity investees 46.5 55.9 Operating income 1,121.7 1,485.4 Interest income and other, net 27.8 33.8 Interest expense ( 127.2 ) ( 140.1 ) Earnings before income taxes 1,022.3 1,379.1 Income tax expense 241.4 354.7 Net earnings including noncontrolling interests 780.9 1,024.4 Net earnings attributable to noncontrolling interests 0.1 0.0 Net earnings attributable to Starbucks $ 780.8 $ 1,024.4 Earnings per share - basic $ 0.69 $ 0.90 Earnings per share - diluted $ 0.69 $ 0.90 Weighted average shares outstanding: Basic 1,134.7 1,136.6 Diluted 1,138.4 1,140.6 See Notes to Consolidated Financial Statements. 3 Table of Contents STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions, unaudited) Quarter Ended Dec 29, 2024 Dec 31, 2023 Net earnings including noncontrolling interests $ 780.9 $ 1,024.4 Other comprehensive income/(loss), net of tax: Unrealized holding gains/(losses) on available-for-sale debt securities ( 2.1 ) 5.6 Tax (expense)/benefit 0.5 ( 1.4 ) Unrealized gains/(losses) on cash flow hedging instruments 69.6 35.4 Tax (expense)/benefit ( 18.1 ) ( 1.8 ) Unrealized gains/(losses) on net investment hedging instruments 207.5 ( 25.2 ) Tax (expense)/benefit ( 52.4 ) 6.3 Translation adjustment and other ( 311.5 ) 183.1 Tax (expense)/benefit — ( 4.7 ) Reclassification adjustment for net (gains)/loss

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1: Summary of Significant Accounting Policies and Estimates Financial Statement Preparation The unaudited consolidated financial statements as of December 29, 2024, and for the quarters ended December 29, 2024 and December 31, 2023, have been prepared by Starbucks Corporation under the rules and regulations of the Securities and Exchange Commission ("SEC"). In the opinion of management, the financial information for the quarters ended December 29, 2024 and December 31, 2023 reflects all adjustments and accruals, which are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods. In this Quarterly Report on Form 10-Q ("10-Q"), Starbucks Corporation (together with its subsidiaries) is referred to as "Starbucks," the "Company," "we," "us," or "our." Segment information is prepared on the same basis that our ceo, who is our Chief Operating Decision Maker, manages the segments, evaluates financial results, and makes key operating decisions. The financial information as of September 29, 2024 is derived from our audited consolidated financial statements and notes for the fiscal year ended September 29, 2024 ("fiscal 2024") included in Item 8 in the fiscal 2024 Annual Report on Form 10-K filed with the SEC on November 20, 2024 ("10-K"). The information included in this 10-Q should be read in conjunction with the footnotes and management's discussion and analysis of the consolidated financial statements in the 10-K. The results of operations for the quarter ended December 29, 2024 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending September 28, 2025 ("fiscal 2025"). Recent Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued guidance expanding segment disclosure requirements. The amendm

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View this 10-Q filing on SEC EDGAR