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1、Table of ContentsUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,DC 20549FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the Quarterly Period Ended March 30,2025OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANG

2、E ACT OF 1934For the transition period from to .Commission File Number:000-20322Starbucks Corporation(Exact Name of Registrant as Specified in its Charter)Washington91-1325671(State or Other Jurisdiction ofIncorporation or Organization)(IRS EmployerIdentification No.)2401 Utah Avenue South,Seattle,W

3、ashington 98134(Address of principal executive offices,zip code)(206)447-1575(Registrants Telephone Number,including Area Code)Securities registered pursuant to Section 12(b)of the Act:Title of Each ClassTrading SymbolName of each exchange on which registeredCommon Stock,$0.001 par value per shareSB

4、UXNasdaq Global Select MarketIndicate by check mark whether the registrant:(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 duringthe preceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)

5、has been subject to such filing requirements forthe past 90 days.Yes x No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 ofRegulation S-T(232.405 of this chapter)during the preceding 12 months(or fo

6、r such shorter period that the registrant was required to submit suchfiles).Yes x No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or anemerging growth company.See the definitions of“large accelerat

7、ed filer,”“accelerated filer,”“smaller reporting company”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filerxAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth companyIf an emerging growth company,indicate by check mark if the registrant

8、has elected not to use the extended transition period for complying with any new orrevised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act):Yes No x Indi

9、cate the number of shares outstanding of each of the issuers classes of common stock,as of the latest practicable date.Shares Outstanding as of April 23,20251,136.4 millionTable of ContentsSTARBUCKS CORPORATIONFORM 10-QFor the Quarterly Period Ended March 30,2025Table of Contents PART I.FINANCIAL IN

10、FORMATIONItem 1Financial Statements(Unaudited)3Consolidated Statements of Earnings3Consolidated Statements of Comprehensive Income4Consolidated Balance Sheets5Consolidated Statements of Cash Flows6Consolidated Statements of Equity7Index for Notes to Consolidated Financial Statements9Notes to Consoli

11、dated Financial Statements10Item 2Managements Discussion and Analysis of Financial Condition and Results of Operations28Item 3Quantitative and Qualitative Disclosures About Market Risk41Item 4Controls and Procedures42PART II.OTHER INFORMATIONItem 1Legal Proceedings43Item 1ARisk Factors43Item 2Unregi

12、stered Sales of Equity Securities and Use of Proceeds43Item 3Defaults Upon Senior Securities43Item 4Mine Safety Disclosures43Item 5Other Information43Item 6Exhibits44Signatures45 Table of ContentsPART I FINANCIAL INFORMATIONItem 1.Financial StatementsSTARBUCKS CORPORATIONCONSOLIDATED STATEMENTS OF E

13、ARNINGS(in millions,except per share data,unaudited)Quarter EndedTwo Quarters EndedMar 30,2025Mar 31,2024Mar 30,2025Mar 31,2024Net revenues:Company-operated stores$7,285.0$7,052.6$15,070.3$14,807.9 Licensed stores1,016.0 1,054.5 2,151.7 2,246.6 Other460.6 455.9 937.4 933.8 Total net revenues8,761.6

14、8,563.0 18,159.4 17,988.3 Product and distribution costs2,737.6 2,648.7 5,631.3 5,629.2 Store operating expenses4,176.0 3,724.1 8,379.1 7,575.6 Other operating expenses138.7 132.8 291.3 283.2 Depreciation and amortization expenses418.9 371.9 826.2 737.2 General and administrative expenses632.3 654.6

15、 1,298.0 1,302.6 Restructuring116.2 116.2 Total operating expenses8,219.7 7,532.1 16,542.1 15,527.8 Income from equity investees59.1 68.0 105.5 123.8 Operating income601.0 1,098.9 1,722.8 2,584.3 Interest income and other,net28.4 34.1 56.2 67.9 Interest expense(127.3)(140.6)(254.5)(280.7)Earnings be

16、fore income taxes502.1 992.4 1,524.5 2,371.5 Income tax expense118.0 219.9 359.4 574.6 Net earnings including noncontrolling interests384.1 772.5 1,165.1 1,796.9 Net earnings/(loss)attributable to noncontrolling interests(0.1)0.1 0.1 0.1 Net earnings attributable to Starbucks$384.2$772.4$1,165.0$1,7

17、96.8 Earnings per share-basic$0.34$0.68$1.03$1.58 Earnings per share-diluted$0.34$0.68$1.02$1.58 Weighted average shares outstanding:Basic1,136.0 1,132.4 1,135.3 1,134.5 Diluted1,140.0 1,135.4 1,139.2 1,138.0 See Notes to Consolidated Financial Statements.3Table of ContentsSTARBUCKS CORPORATIONCONSO

18、LIDATED STATEMENTS OF COMPREHENSIVE INCOME(in millions,unaudited)Quarter EndedTwo Quarters EndedMar 30,2025Mar 31,2024Mar 30,2025Mar 31,2024Net earnings including noncontrolling interests$384.1$772.5$1,165.1$1,796.9 Other comprehensive income/(loss),net of tax:Unrealized holding gains/(losses)on ava

19、ilable-for-sale debt securities2.2(0.4)0.1 5.2 Tax(expense)/benefit(0.5)0.1 (1.3)Unrealized gains/(losses)on cash flow hedging instruments(6.6)36.4 63.0 71.8 Tax(expense)/benefit1.7(9.3)(16.4)(11.1)Unrealized gains/(losses)on net investment hedging instruments13.1 92.5 220.6 67.3 Tax(expense)/benefi

20、t(3.3)(23.3)(55.7)(17.0)Translation adjustment and other90.6(151.2)(220.9)31.9 Tax(expense)/benefit 1.1 (3.6)Reclassification adjustment for net(gains)/losses realized in netearnings for available-for-sale securities,hedging instruments,translation adjustment,and other(54.5)(13.6)(121.4)11.3 Tax exp

21、ense/(benefit)11.9 4.0 30.5 2.2 Other comprehensive income/(loss)54.6(63.7)(100.2)156.7 Comprehensive income including noncontrolling interests438.7 708.8 1,064.9 1,953.6 Comprehensive income/(loss)attributable to noncontrolling interests(0.1)(0.2)0.2 Comprehensive income attributable to Starbucks$4

22、38.8$708.8$1,065.1$1,953.4 See Notes to Consolidated Financial Statements.4Table of ContentsSTARBUCKS CORPORATIONCONSOLIDATED BALANCE SHEETS(in millions,except per share data,unaudited)Mar 30,2025Sep 29,2024ASSETSCurrent assets:Cash and cash equivalents$2,671.4$3,286.2 Short-term investments340.2 25

23、7.0 Accounts receivable,net1,154.7 1,213.8 Inventories2,047.3 1,777.3 Prepaid expenses and other current assets500.1 313.1 Total current assets6,713.7 6,847.4 Long-term investments222.1 276.0 Equity investments466.9 463.9 Property,plant and equipment,net8,820.2 8,665.5 Operating lease,right-of-use a

24、sset9,467.2 9,286.2 Deferred income taxes,net1,735.9 1,766.7 Other long-term assets713.1 617.0 Other intangible assets169.3 100.9 Goodwill3,324.7 3,315.7 TOTAL ASSETS$31,633.1$31,339.3 LIABILITIES AND SHAREHOLDERS EQUITY/(DEFICIT)Current liabilities:Accounts payable$1,913.8$1,595.5 Accrued liabiliti

25、es2,036.7 2,194.7 Accrued payroll and benefits833.1 786.6 Current portion of operating lease liability1,477.8 1,463.1 Stored value card liability and current portion of deferred revenue1,920.1 1,781.2 Current portion of long-term debt2,247.8 1,248.9 Total current liabilities10,429.3 9,070.0 Long-ter

26、m debt13,324.0 14,319.5 Operating lease liability8,959.9 8,771.6 Deferred revenue5,871.3 5,963.6 Other long-term liabilities664.0 656.2 Total liabilities39,248.5 38,780.9 Shareholders deficit:Common stock($0.001 par value)authorized,2,400.0 shares;issued and outstanding,1,136.2 and 1,133.5 shares,re

27、spectively1.1 1.1 Additional paid-in capital470.9 322.6 Retained deficit(7,565.5)(7,343.8)Accumulated other comprehensive income/(loss)(529.0)(428.8)Total shareholders deficit(7,622.5)(7,448.9)Noncontrolling interests7.1 7.3 Total deficit(7,615.4)(7,441.6)TOTAL LIABILITIES AND SHAREHOLDERS EQUITY/(D

28、EFICIT)$31,633.1$31,339.3 See Notes to Consolidated Financial Statements.5Table of ContentsSTARBUCKS CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS(in millions,unaudited)Two Quarters EndedMar 30,2025Mar 31,2024OPERATING ACTIVITIES:Net earnings including noncontrolling interests$1,165.1$1,796.9 Adj

29、ustments to reconcile net earnings to net cash provided by operating activities:Depreciation and amortization867.5 783.6 Deferred income taxes,net(12.4)4.0 Income earned from equity method investees,net(115.5)(132.3)Distributions received from equity method investees133.8 154.5 Stock-based compensat

30、ion178.3 173.0 Non-cash lease costs811.6 689.5 Loss on retirement and impairment of assets82.1 42.5 Other3.4 16.3 Cash provided by/(used in)changes in operating assets and liabilities:Accounts receivable17.0 86.4 Inventories(281.0)64.5 Income taxes payable6.4(84.9)Accounts payable339.4(51.6)Deferred

31、 revenue65.4 128.9 Operating lease liability(834.4)(635.1)Other operating assets and liabilities(62.7)(146.3)Net cash provided by operating activities2,364.0 2,889.9 INVESTING ACTIVITIES:Purchases of investments(169.4)(472.0)Sales of investments 0.5 Maturities and calls of investments141.0 498.7 Add

32、itions to property,plant and equipment(1,282.1)(1,255.0)Acquisitions,net of cash acquired(177.1)Other(11.6)(36.2)Net cash used in investing activities(1,499.2)(1,264.0)FINANCING ACTIVITIES:Net proceeds from issuance of short-term debt1.1 93.2 Repayments of short-term debt(5.4)(80.5)Net proceeds from

33、 issuance of long-term debt 1,995.3 Repayments of long-term debt(1,825.1)Proceeds from issuance of common stock44.4 58.4 Cash dividends paid(1,384.9)(1,293.5)Repurchase of common stock(1,266.7)Minimum tax withholdings on share-based awards(76.5)(94.1)Other(10.6)Net cash used in financing activities(

34、1,421.3)(2,423.6)Effect of exchange rate changes on cash and cash equivalents(58.3)10.4 Net increase/(decrease)in cash and cash equivalents(614.8)(787.3)CASH AND CASH EQUIVALENTS:Beginning of period3,286.2 3,551.5 End of period$2,671.4$2,764.1 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:Cash pa

35、id during the period for:Interest,net of capitalized interest$294.2$275.6 Income taxes$459.2$850.9 See Notes to Consolidated Financial Statements.6Table of ContentsSTARBUCKS CORPORATIONCONSOLIDATED STATEMENTS OF EQUITYFor the Quarter Ended March 30,2025 and March 31,2024(in millions,except per share

36、 data,unaudited)Common StockAdditionalPaid-inCapitalRetainedEarnings/(Deficit)AccumulatedOtherComprehensiveIncome/(Loss)ShareholdersEquity/(Deficit)NoncontrollingInterestsTotal SharesAmountBalance,December 29,20241,135.8$1.1$367.2$(7,256.4)$(583.6)$(7,471.7)$7.1$(7,464.6)Net earnings 384.2 384.2(0.1

37、)384.1 Other comprehensive income 54.6 54.6 54.6 Stock-based compensation expense 78.3 78.3 78.3 Exercise of stock options/vesting ofRSUs0.3 11.7 11.7 11.7 Sale of common stock0.1 13.7 13.7 13.7 Cash dividends declared,$0.61 pershare (693.3)(693.3)(693.3)Other 0.1 0.1 Balance,March 30,20251,136.2$1.

38、1$470.9$(7,565.5)$(529.0)$(7,622.5)$7.1$(7,615.4)Balance,December 31,20231,132.2$1.1$38.2$(8,097.5)$(557.8)$(8,616.0)$7.1$(8,608.9)Net earnings 772.4 772.4 0.1 772.5 Other comprehensive loss (63.6)(63.6)(0.1)(63.7)Stock-based compensation expense 79.1 79.1 79.1 Exercise of stock options/vesting ofRS

39、Us0.3 10.9 10.9 10.9 Sale of common stock0.2 13.0 13.0 13.0 Repurchase of common stock 0.5 0.1 0.6 0.6 Cash dividends declared,$0.57 pershare (645.7)(645.7)(645.7)Other (0.1)(0.1)0.1 Balance,March 31,20241,132.7$1.1$141.7$(7,970.7)$(621.5)$(8,449.4)$7.2$(8,442.2)Includes excise tax on share repurcha

40、ses.See Notes to Consolidated Financial Statements.(1)(1)7Table of ContentsSTARBUCKS CORPORATIONCONSOLIDATED STATEMENTS OF EQUITYFor the Two Quarters Ended March 30,2025 and March 31,2024(in millions,except per share data,unaudited)Common StockAdditionalPaid-inCapitalRetainedEarnings/(Deficit)Accumu

41、latedOtherComprehensiveIncome/(Loss)ShareholdersEquity/(Deficit)NoncontrollingInterestsTotal SharesAmountBalance,September 29,20241,133.5$1.1$322.6$(7,343.8)$(428.8)$(7,448.9)$7.3$(7,441.6)Net earnings 1,165.0 1,165.0 0.1 1,165.1 Other comprehensive loss (99.9)(99.9)(0.3)(100.2)Stock-based compensat

42、ion expense 180.4 180.4 180.4 Exercise of stock options/vesting ofRSUs2.4(59.0)(59.0)(59.0)Sale of common stock0.3 26.9 26.9 26.9 Cash dividends declared,$1.22 pershare (1,386.7)(1,386.7)(1,386.7)Other (0.3)(0.3)(0.3)Balance,March 30,20251,136.2$1.1$470.9$(7,565.5)$(529.0)$(7,622.5)$7.1$(7,615.4)Bal

43、ance,October 1,20231,142.6$1.1$38.1$(7,255.8)$(778.2)$(7,994.8)$7.0$(7,987.8)Net earnings 1,796.8 1,796.8 0.1 1,796.9 Other comprehensive income 156.6 156.6 0.1 156.7 Stock-based compensation expense 175.2 175.2 175.2 Exercise of stock options/vesting ofRSUs2.6(64.9)(64.9)(64.9)Sale of common stock0

44、.3 29.2 29.2 29.2 Repurchase of common stock(12.8)(35.9)(1,223.9)(1,259.8)(1,259.8)Cash dividends declared,$1.14 pershare (1,287.8)(1,287.8)(1,287.8)Other 0.1 0.1 0.1 Balance,March 31,20241,132.7$1.1$141.7$(7,970.7)$(621.5)$(8,449.4)$7.2$(8,442.2)Includes excise tax on share repurchases.See Notes to

45、 Consolidated Financial Statements.(1)(1)8Table of ContentsSTARBUCKS CORPORATIONINDEX FOR NOTES TO CONSOLIDATED FINANCIAL STATEMENTSNote 1Summary of Significant Accounting Policies and Estimates10Note 2Acquisitions,Divestitures,and Strategic Alliance10Note 3Derivative Financial Instruments11Note 4Fa

46、ir Value Measurements15Note 5Inventories17Note 6Supplemental Balance Sheet and Statement of Earnings Information17Note 7Other Intangible Assets and Goodwill18Note 8Debt20Note 9Leases22Note 10Deferred Revenue22Note 11Equity24Note 12Employee Stock Plans25Note 13Earnings per Share26Note 14Commitments a

47、nd Contingencies26Note 15Segment Reporting26Note 16Restructuring279Table of ContentsSTARBUCKS CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(unaudited)Note 1:Summary of Significant Accounting Policies and EstimatesFinancial Statement PreparationThe unaudited consolidated financial statements

48、as of March 30,2025,and for the quarters and two quarters ended March 30,2025 and March 31,2024,havebeen 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 and two

49、quarters ended March 30,2025 and March 31,2024 reflects all adjustments and accruals,which are of anormal recurring nature,necessary for a fair presentation of the financial position,results of operations,and cash flows for the interim periods.In this QuarterlyReport on Form 10-Q(“10-Q”),Starbucks C

50、orporation(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 chief executive officer,who is our Chief Operating Decision Maker,manages the segments,evaluates financial results,and makes key operating

51、decisions.The financial information as of September 29,2024 is derived from our audited consolidated financial statements and notes for the fiscal year endedSeptember 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”)

52、.The information included in this 10-Q should be read in conjunction with the footnotes and managements discussion and analysis of the consolidated financialstatements in the 10-K.The results of operations for the quarter and two quarters ended March 30,2025 are not necessarily indicative of the res

53、ults of operations that may be achievedfor the entire fiscal year ending September 28,2025(“fiscal 2025”).Recent Accounting Pronouncements Not Yet AdoptedIn November 2023,the Financial Accounting Standards Board(“FASB”)issued guidance expanding segment disclosure requirements.The amendmentsrequire e

54、nhanced disclosure for certain segment items and disclosure on how management uses reported measures to assess segment performance.Theamendments do not change how segments are determined,aggregated,or how thresholds are applied to determine reportable segments.We will adopt theguidance for the fisca

55、l year ending September 28,2025 and do not expect the adoption of this guidance to have a significant impact on our consolidatedfinancial statement disclosures.In December 2023,the FASB issued guidance expanding disclosure requirements related to income taxes.The amendments require enhanced jurisdic

56、tionaldisclosures for the income tax rate reconciliation and related to cash income taxes paid.Additionally,certain disclosures related to unrecognized tax benefitsand indefinite reinvestment assertions were removed.The amendments are effective for our fiscal year ending September 27,2026.While we a

57、re stillevaluating the specific impacts and timing of adoption,we anticipate this guidance will have a significant impact on our annual income tax disclosures.In November 2024,the FASB issued guidance expanding disclosure requirements related to certain income statement expenses.The amendments requi

58、retabular disclosure of certain operating expenses disaggregated into categories,such as purchases of inventory,employee compensation,depreciation,andintangible asset amortization.The amendments are effective for our fiscal year ending October 1,2028,and may be applied retrospectively.While we are s

59、tillevaluating the specific impacts and adoption method,we anticipate this guidance will have a significant impact on our consolidated financial statementdisclosures.Note 2:Acquisitions,Divestitures,and Strategic AllianceOn October 14,2024,we acquired a 100%ownership interest in 23.5 Degrees Topco L

60、imited,a U.K.licensed business partner,to expand our portfolio ofcompany-operated stores and enhance the coffeehouse experience for customers.The acquisition converted 113 licensed stores to company-operated storeswithin our International operating segment.The assets acquired and liabilities assumed

61、 are included in our International operating segment.Assets acquired primarily include operating lease right-of-useassets,intangible assets,goodwill,and property,plant and equipment.The intangible assets acquired as part of this transaction include reacquired licenseeagreement rights,which will be a

62、mortized over the estimated useful life.In addition,we assumed various liabilities,primarily consisting of operating leaseliabilities.The transaction is not material to our consolidated financial statements.10Table of ContentsNote 3:Derivative Financial InstrumentsInterest RatesFrom time to time,we

63、enter into designated cash flow hedges to manage the variability in cash flows due to changes in benchmark interest rates.We enter intointerest rate swap agreements,including forward-starting interest rate swaps and treasury locks,settled in cash based upon the difference between an agreed-upon benc

64、hmark rate and the prevailing benchmark rate at settlement.These agreements are generally settled around the time of the pricing of the related debt.Each derivative agreements gain or loss is recorded in accumulated other comprehensive income(“AOCI”)and is subsequently reclassified to interest expen

65、seover the life of the related debt.To hedge the exposure to changes in the fair value of our fixed-rate debt,we enter into interest rate swap agreements,which are designated as fair value hedges.The changes in fair values of these derivative instruments and the offsetting changes in fair values of

66、the underlying hedged debt due to changes in the relevantbenchmark interest rates are recorded in interest expense.Refer to Note 8,Debt,for additional information on our long-term debt.Foreign CurrencyTo reduce cash flow volatility from foreign currency fluctuations,we enter into forward and swap co

67、ntracts to hedge portions of cash flows of anticipatedroyalty revenue,inventory purchases,and intercompany borrowing and lending activities.The resulting gains and losses from these derivatives are recorded inAOCI and subsequently reclassified to revenue,product and distribution costs,or interest in

68、come and other,net,respectively,when the hedged exposures affectnet earnings.From time to time,we may enter into financial instruments,including,but not limited to,forward and swap contracts or foreign currency-denominated debt,tohedge the currency exposure of our net investments in certain internat

69、ional operations.The resulting gains and losses from these derivatives are recorded inAOCI and are subsequently reclassified to net earnings when the hedged net investment is either sold or substantially liquidated.Gains and losses from thesederivatives,representing hedged components excluded from t

70、he assessment of effectiveness,are amortized over the life of the hedging instrument using asystematic and rational method and recognized in interest expense.Foreign currency forward and swap contracts not designated as hedging instruments are used to mitigate the foreign exchange risk of certain ot

71、her balancesheet items.Gains and losses from these derivatives are largely offset by the financial impact of translating foreign currency-denominated payables andreceivables,and these gains and losses are recorded in interest income and other,net.CommoditiesDepending on market conditions,we may ente

72、r into coffee forward contracts,futures contracts,and collars to hedge anticipated cash flows under our price-to-be-fixed green coffee contracts,which are described further in Note 5,Inventories,or our longer-dated forecasted coffee demand where underlying fixed priceand price-to-be-fixed contracts

73、are not yet available.The resulting gains and losses are recorded in AOCI and are subsequently reclassified to product anddistribution costs when the hedged exposure affects net earnings.Depending on market conditions,we may also enter into dairy forward contracts and futures contracts to hedge a po

74、rtion of anticipated cash flows under ourdairy purchase contracts and our forecasted dairy demand.The resulting gains or losses are recorded in AOCI and are subsequently reclassified to product anddistribution costs when the hedged exposure affects net earnings.Cash flow hedges related to anticipate

75、d transactions are designated and documented at the inception of each hedge.Cash flows from hedging transactions areclassified in the same categories as the cash flows from the respective hedged items.For de-designated cash flow hedges in which the underlying transactionsare no longer probable of oc

76、curring or where price variability in the underlying cash flow ceases to exist,the related accumulated derivative gains or losses arerecognized in interest income and other,net on our consolidated statements of earnings.These derivatives may be accounted for prospectively as non-designated derivativ

77、es until maturity,re-designated to new hedging relationships,or terminated early.We continue to believe transactions related to ourdesignated cash flow hedges are probable to occur.To mitigate the price uncertainty of a portion of our future purchases,including diesel fuel and other commodities,we e

78、nter into swap contracts,futures,andcollars that are not designated as hedging instruments.The resulting gains and losses are recorded in interest income and other,net to help offset pricefluctuations on our beverage,food,packaging,and transportation costs,which are included in product and distribut

79、ion costs on our consolidated statements ofearnings.11Table of ContentsGains and losses on derivative contracts and foreign currency-denominated debt designated as hedging instruments included in AOCI and expected to bereclassified into earnings within 12 months,net of tax(in millions):Net Gains/(Lo

80、sses)Included in AOCINet Gains/(Losses)Expectedto be Reclassified from AOCIinto Earnings within 12MonthsOutstanding Contract/DebtRemaining Maturity(Months)Mar 30,2025Sep 29,2024Cash Flow Hedges:Coffee$35.6$60.1$35.6 4Cross-currency swaps 0.5 0Dairy 2.0 1Foreign currency-other33.8 11.5 22.2 34Interes

81、t rates(2.1)(3.6)(3.3)0Net Investment Hedges:Cross-currency swaps219.9 96.5 108Foreign currency16.0 16.0 0Foreign currency debt135.2 135.2 012Table of ContentsPre-tax gains and losses on derivative contracts and foreign currency-denominated long-term debt designated as hedging instruments recognized

82、 in othercomprehensive income(“OCI”)and reclassifications from AOCI to earnings(in millions):Quarter EndedGains/(Losses)Recognized inOCI Before ReclassificationsGains/(Losses)Reclassified fromAOCI to EarningsLocation of gain/(loss)Mar 30,2025Mar 31,2024Mar 30,2025Mar 31,2024Cash Flow Hedges:Coffee$0

83、.6$(1.2)$17.4$(6.2)Product and distribution costsCross-currency swaps 4.0 0.4 Interest expense0.6 3.3 Interest income and other,netDairy(0.2)(1.3)(2.3)Product and distribution costsForeign currency-other(7.0)34.9 7.4 7.4 Licensed stores revenue2.6 2.2 Product and distribution costsInterest rates (1.

84、0)(1.0)Interest expenseNet Investment Hedges:Cross-currency swaps 13.1 67.0 27.7 10.2 Interest expenseForeign currency debt 25.5 Two Quarters EndedGains/(Losses)Recognized inOCI Before ReclassificationsGains/(Losses)Reclassified fromAOCI to EarningsLocation of gain/(loss)Mar 30,2025Mar 31,2024Mar 30

85、,2025Mar 31,2024Cash Flow Hedges:Coffee$13.4$63.1$45.1$(46.6)Product and distribution costsCross-currency swaps0.9 2.4 1.0 Interest expense1.4 0.6 Interest income and other,netDairy(1.3)(3.2)1.4(3.9)Product and distribution costsForeign currency-other50.0 9.5 16.2 16.2 Licensed stores revenue4.3 5.0

86、 Product and distribution costsInterest rates (2.0)(2.0)Interest expenseNet Investment Hedges:Cross-currency swaps220.6 73.6 55.4 19.1 Interest expenseForeign currency debt(6.3)Gains and losses recognized in earnings relate to components excluded from the assessment of effectiveness.Pre-tax gains an

87、d losses on non-designated derivatives and designated fair value hedging instruments and the related fair value hedged item recognized inearnings(in millions):Gains/(Losses)Recognized in EarningsLocation of gain/(loss)recognized in earningsQuarter EndedTwo Quarters Ended Mar 30,2025Mar 31,2024Mar 30

88、,2025Mar 31,2024Non-Designated Derivatives:DairyInterest income and other,net$0.1$Foreign currency-otherInterest income and other,net(2.8)3.6 6.1 1.2 Diesel fuel and other commoditiesInterest income and other,net(0.2)0.3(0.3)(0.4)Fair Value Hedges:Interest rate swapsInterest expense4.6(8.7)(8.5)2.4

89、Long-term debt(hedged item)Interest expense(6.8)5.7 3.8(8.6)(1)(1)(1)13Table of ContentsNotional amounts of outstanding derivative contracts(in millions):Mar 30,2025Sep 29,2024Coffee$200$154 Cross-currency swaps4,197 4,213 Dairy7 65 Diesel fuel and other commodities14 3 Foreign currency-other984 920

90、 Interest rate swaps350 350 Fair value of outstanding derivative contracts(in millions)including the location of the asset and/or liability on the consolidated balance sheets:Derivative AssetsBalance Sheet LocationMar 30,2025Sep 29,2024Designated Derivative Instruments:Cross-currency swapsPrepaid ex

91、penses and other current assets$28.9$3.9 Other long-term assets258.5 177.4 DairyPrepaid expenses and other current assets 0.8 Foreign currency-otherPrepaid expenses and other current assets21.1 1.9 Other long-term assets13.2 1.7 Non-designated Derivative Instruments:DairyPrepaid expenses and other c

92、urrent assets 0.3 Diesel fuel and other commoditiesPrepaid expenses and other current assets0.1 Foreign currencyPrepaid expenses and other current assets1.1 1.8 Derivative LiabilitiesBalance Sheet LocationMar 30,2025Sep 29,2024Designated Derivative Instruments:Cross-currency swapsAccrued liabilities

93、$21.7 Other long-term liabilities 33.3 DairyAccrued liabilities0.1 Foreign currency-otherAccrued liabilities0.1 4.7 Other long-term liabilities 4.1 Interest rate swapsOther long-term liabilities22.4 19.2 Non-designated Derivative Instruments:Diesel fuel and other commoditiesAccrued liabilities0.3 0.

94、3 Foreign currencyAccrued liabilities0.4 2.5 Other long-term liabilities 0.1 We also hold cash and cash equivalents from various settled-to-market exchange traded futures related to coffee and dairy hedging.The following amounts were recorded on the consolidated balance sheets related to fixed-to-fl

95、oating interest rate swaps designated in fair value hedgingrelationships(in millions):Carrying amount of hedged itemCumulative amount of fair value hedging adjustmentincluded in the carrying amountMar 30,2025Sep 29,2024Mar 30,2025Sep 29,2024Location on the balance sheetLong-term debt$328.4$332.2$(21

96、.6)$(17.8)Additional disclosures related to cash flow gains and losses included in AOCI,as well as subsequent reclassifications to earnings,are included in Note 11,Equity.(1)(1)14Table of ContentsNote 4:Fair Value MeasurementsAssets and liabilities measured at fair value on a recurring basis(in mill

97、ions):Fair Value Measurements at Reporting Date Using Balance atMarch 30,2025Quoted Prices in ActiveMarkets for Identical Assets(Level 1)Significant OtherObservable Inputs(Level 2)Significant Unobservable Inputs(Level 3)Assets:Cash and cash equivalents$2,671.4$2,671.4$Short-term investments:Availabl

98、e-for-sale debt securities:Corporate debt securities82.4 71.0 11.4 U.S.government treasury securities81.3 81.3 Total available-for-sale debt securities163.7 81.3 71.0 11.4 Structured deposits96.8 96.8 Marketable equity securities79.7 79.7 Total short-term investments340.2 161.0 167.8 11.4 Prepaid ex

99、penses and other current assets:Derivative assets51.2 51.2 Long-term investments:Available-for-sale debt securities:Corporate debt securities110.3 85.1 25.2 Mortgage and other asset-backedsecurities68.0 68.0 State and local government obligations3.8 3.8 U.S.government treasury securities40.0 40.0 To

100、tal available-for-sale debt securities222.1 40.0 156.9 25.2 Total long-term investments222.1 40.0 156.9 25.2 Other long-term assets:Derivative assets271.7 271.7 Total assets$3,556.6$2,872.4$647.6$36.6 Liabilities:Accrued liabilities:Derivative liabilities$0.9$0.9$Other long-term liabilities:Derivati

101、ve liabilities22.4 22.4 Total liabilities$23.3$23.3$15Table of Contents Fair Value Measurements at Reporting Date Using Balance atSeptember 29,2024Quoted Prices in ActiveMarkets for IdenticalAssets(Level 1)Significant OtherObservable Inputs(Level 2)SignificantUnobservable Inputs(Level 3)Assets:Cash

102、and cash equivalents$3,286.2$3,286.2$Short-term investments:Available-for-sale debt securities:Corporate debt securities51.8 51.8 Foreign corporate bonds0.2 0.2 Mortgage and other asset-backed securities0.4 0.4 State and local government obligations1.4 1.4 U.S.government treasury securities36.9 36.9

103、 Total available-for-sale debt securities90.7 36.9 53.8 Structured deposits84.1 84.1 Marketable equity securities82.2 82.2 Total short-term investments257.0 119.1 137.9 Prepaid expenses and other current assets:Derivative assets8.7 8.7 Long-term investments:Available-for-sale debt securities:Corpora

104、te debt securities112.8 101.8 11.0 Mortgage and other asset-backed securities64.4 64.4 State and local government obligations3.7 3.7 U.S.government treasury securities94.9 94.9 Total available-for-sale debt securities275.8 94.9 169.9 11.0 Structured deposits0.2 0.2 Total long-term investments276.094

105、.9170.111.0Other long-term assets:Derivative assets179.1 179.1 Total assets$4,007.0$3,500.2$495.8$11.0 Liabilities:Accrued liabilities:Derivative liabilities$29.2$29.2$Other long-term liabilities:Derivative liabilities56.7 56.7 Total liabilities$85.9$85.9$There were no material transfers between lev

106、els,and there was no significant activity within Level 3 instruments during the periods presented.The fair valuesof any financial instruments presented above exclude the impact of netting assets and liabilities when a legally enforceable master netting agreement exists.Gross unrealized holding gains

107、 and losses on available-for-sale debt securities,structured deposits,and marketable equity securities were not material as ofMarch 30,2025 and September 29,2024.Assets and Liabilities Measured at Fair Value on a Nonrecurring BasisAssets and liabilities recognized or disclosed at fair value on the c

108、onsolidated financial statements on a nonrecurring basis include items such as property,plantand equipment,right-of-use assets,goodwill and other intangible assets,equity and other investments,and other assets.These assets are measured at fair valueif determined to be impaired.16Table of ContentsThe

109、 estimated fair value of our long-term debt based on the quoted market price(Level 2)is included at Note 8,Debt.There were no material fair valueadjustments during the two quarters ended March 30,2025 and March 31,2024.Note 5:Inventories(in millions):Mar 30,2025Sep 29,2024Coffee:Unroasted$950.4$665.

110、1 Roasted274.0 251.9 Other merchandise held for sale 322.4 384.6 Packaging and other supplies500.5 475.7 Total$2,047.3$1,777.3“Other merchandise held for sale”includes,among other items,serveware,food,and tea.Inventory levels vary due to seasonality,commodity marketsupply,and price fluctuations.As o

111、f March 30,2025,we had committed to purchasing green coffee totaling$213 million under fixed-price contracts and an estimated$951 million underprice-to-be-fixed contracts.A portion of our price-to-be-fixed contracts are effectively fixed through the use of futures.See Note 3,Derivative FinancialInst

112、ruments,for further discussion.Price-to-be-fixed contracts are purchase commitments whereby the quality,quantity,delivery period,and other negotiatedterms are agreed upon,but the date,and therefore the price,at which the base“C”coffee commodity price component will be fixed has not yet beenestablish

113、ed.For most contracts,either Starbucks or the seller has the option to“fix”the base“C”coffee commodity price prior to the delivery date.For othercontracts,Starbucks and the seller may agree upon pricing parameters determined by the base“C”coffee commodity price.Until prices are fixed,we estimatethe

114、total cost of these purchase commitments.We believe,based on established relationships with our suppliers and continuous monitoring,the risk of non-delivery on these purchase commitments is remote.Note 6:Supplemental Balance Sheet and Statement of Earnings Information(in millions):Property,Plant and

115、 Equipment,netMar 30,2025Sep 29,2024Land$56.9$56.9 Buildings672.8 684.8 Leasehold improvements11,680.6 11,453.9 Store equipment3,910.6 3,803.6 Roasting equipment869.6 865.7 Capitalized software1,123.2 1,049.7 Furniture,fixtures and other765.8 775.5 Work in progress792.9 750.9 Property,plant and equi

116、pment,gross19,872.4 19,441.0 Accumulated depreciation(11,052.2)(10,775.5)Property,plant and equipment,net$8,820.2$8,665.5 Accrued LiabilitiesMar 30,2025Sep 29,2024Accrued occupancy costs$81.7$81.7 Accrued dividends payable692.9 691.2 Accrued capital and other operating expenditures673.5 842.8 Insura

117、nce reserves266.9 244.3 Income taxes payable131.4 123.5 Accrued business taxes190.3 211.2 Total accrued liabilities$2,036.7$2,194.7(1)(1)17Table of ContentsStore Operating ExpensesQuarter EndedTwo Quarters EndedMar 30,2025Mar 31,2024Mar 30,2025Mar 31,2024Wages and benefits$2,406.1$2,139.4$4,795.2$4,

118、348.7 Occupancy costs807.2 741.3 1,609.3 1,487.0 Other expenses962.7 843.4 1,974.6 1,739.9 Total store operating expenses$4,176.0$3,724.1$8,379.1$7,575.6 Note 7:Other Intangible Assets and GoodwillIndefinite-Lived Intangible Assets(in millions)Mar 30,2025Sep 29,2024Trade names,trademarks and patents

119、$79.5$79.5 Finite-Lived Intangible AssetsMar 30,2025Sep 29,2024(in millions)Gross CarryingAmountAccumulatedAmortizationNet CarryingAmountGross CarryingAmountAccumulatedAmortizationNet CarryingAmountAcquired and reacquired rights$1,039.1$(960.8)$78.3$995.5$(995.5)$Acquired trade secrets and processes

120、27.6(27.6)27.6(27.6)Trade names,trademarks and patents130.1(119.1)11.0 130.4(110.0)20.4 Licensing agreements12.9(12.4)0.5 13.4(12.4)1.0 Other finite-lived intangible assets20.2(20.2)20.9(20.9)Total finite-lived intangible assets$1,229.9$(1,140.1)$89.8$1,187.8$(1,166.4)$21.4 Amortization expense for

121、finite-lived intangible assets was$5.8 million and$11.4 million for the quarter and two quarters ended March 30,2025,respectively,and$5.1 million and$10.2 million for the quarter and two quarters ended March 31,2024,respectively.Estimated future amortization expense as of March 30,2025(in millions):

122、Fiscal YearTotal2025(excluding the two quarters ended March 30,2025)$6.1 20265.9 20275.7 20285.1 20294.6 Thereafter62.4 Total estimated future amortization expense$89.8 GoodwillChanges in the carrying amount of goodwill by reportable operating segment(in millions):North AmericaInternationalChannel D

123、evelopmentCorporate and OtherTotalGoodwill balance at September 29,2024$491.5$2,788.5$34.7$1.0$3,315.7 Acquisition 106.2 106.2 Other(1.6)(95.6)(97.2)Goodwill balance at March 30,2025$489.9$2,799.1$34.7$1.0$3,324.7 Additions to goodwill include the acquisition of 23.5 Degrees Topco Limited in the fir

124、st quarter of fiscal 2025.(1)(2)(1)18Table of Contents“Other”consists of changes in the goodwill balance resulting from foreign currency translation.(2)19Table of ContentsNote 8:DebtRevolving Credit FacilityOur$3.0 billion unsecured five-year revolving credit facility(the“2021 credit facility”),of w

125、hich$150.0 million may be used for issuances of letters of credit,is currently set to mature on September 16,2026.The 2021 credit facility is available for working capital,capital expenditures,and other corporate purposes,including acquisitions and share repurchases.We have the option,subject to neg

126、otiation and agreement with the related banks,to increase the maximumcommitment amount by an additional$1.0 billion.Borrowings under the 2021 credit facility,which was most recently amended in April 2023,will bear interest at a variable rate based on Term SOFR,and,forU.S.dollar-denominated loans und

127、er certain circumstances,a Base Rate(as defined in the 2021 credit facility),in each case plus an applicable margin.Theapplicable margin is based on the Companys long-term credit ratings assigned by the Moodys and Standard&Poors rating agencies.The“Base Rate”is thehighest of(i)the Federal Funds Rate

128、(as defined in the 2021 credit facility)plus 0.500%,(ii)Bank of Americas prime rate,and(iii)Term SOFR plus 1.000%.Term SOFR means the forward-looking SOFR term rate administrated by the Chicago Mercantile Exchange plus a SOFR Adjustment of 0.100%.The 2021 credit facility contains provisions requirin

129、g us to maintain compliance with certain covenants,including a minimum fixed charge coverage ratio,which measures our ability to cover financing expenses.As of March 30,2025,we were in compliance with all applicable covenants.No amounts wereoutstanding under our 2021 credit facility as of March 30,2

130、025 or September 29,2024.Short-term DebtUnder our commercial paper program,we may issue unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time of$3.0billion,with individual maturities that may vary but not exceed 397 days from the date of issue.Amounts outstanding

131、under the commercial paper program arerequired to be backstopped by available commitments under our 2021 credit facility.The proceeds from borrowings under our commercial paper program maybe used for working capital needs,capital expenditures,and other corporate purposes,including,but not limited to

132、,business expansion,payment of cashdividends on our common stock,and share repurchases.We had no borrowings outstanding under our commercial paper program as of March 30,2025 andSeptember 29,2024.Our total available contractual borrowing capacity for general corporate purposes was$3.0 billion as of

133、the end of our second quarter offiscal 2025.Additionally,we hold the following Japanese yen-denominated credit facilities that are available for working capital needs and capital expenditures within ourJapanese market:A 5.0 billion,or$33.1 million,credit facility is currently set to mature on Decemb

134、er 30,2025.Borrowings under this credit facility are subject toterms defined within the facility and will bear interest at a variable rate based on Tokyo Interbank Offered Rate(“TIBOR”)plus an applicable marginof 0.400%.A 10.0 billion,or$66.2 million,credit facility is currently set to mature on Mar

135、ch 27,2026.Borrowings under this credit facility are subject to termsdefined within the facility and will bear interest at a variable rate based on TIBOR plus an applicable margin of 0.300%.As of March 30,2025 and September 29,2024,we had no borrowings outstanding under these credit facilities.20Tab

136、le of ContentsLong-term DebtComponents of long-term debt including the associated interest rates and related estimated fair values by calendar maturity(in millions,except interest rates):Mar 30,2025Sep 29,2024Stated Interest RateEffective InterestRateIssuanceAmountEstimated FairValueAmountEstimated

137、FairValueAugust 2025 notes$1,250.0$1,246.8$1,250.0$1,243.4 3.800%3.721%February 2026 notes1,000.0 1,002.6 1,000.0 1,008.3 4.750%4.788%June 2026 notes500.0 488.6 500.0 486.8 2.450%2.511%February 2027 notes1,000.0 1,008.1 1,000.0 1,017.8 4.850%4.958%March 2027 notes500.0 477.1 500.0 477.1 2.000%2.058%

138、March 2028 notes600.0 584.7 600.0 590.3 3.500%3.529%November 2028 notes750.0 737.2 750.0 748.4 4.000%3.958%August 2029 notes1,000.0 959.8 1,000.0 977.3 3.550%3.840%March 2030 notes750.0 668.9 750.0 679.0 2.250%3.084%November 2030 notes1,250.0 1,112.9 1,250.0 1,135.4 2.550%2.582%February 2031 notes50

139、0.0 504.9 500.0 520.8 4.900%5.046%February 2032 notes1,000.0 889.0 1,000.0 912.0 3.000%3.155%February 2033 notes500.0 495.1 500.0 513.1 4.800%3.798%February 2034 notes500.0 496.5 500.0 515.0 5.000%5.127%June 2045 notes350.0 285.0 350.0 308.5 4.300%4.348%December 2047 notes500.0 370.6 500.0 398.8 3.7

140、50%3.765%November 2048 notes1,000.0 831.9 1,000.0 903.4 4.500%4.504%August 2049 notes1,000.0 818.9 1,000.0 889.0 4.450%4.447%March 2050 notes500.0 335.8 500.0 367.9 3.350%3.362%November 2050 notes1,250.0 868.5 1,250.0 954.4 3.500%3.528%Total15,700.0 14,182.9 15,700.0 14,646.7 Aggregate debt issuance

141、 costs andunamortized premium/(discount),net(106.6)(113.8)Hedge accounting fair value adjustment(21.6)(17.8)Total$15,571.8$15,568.4 Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury locks or forward-startinginterest rate swap

142、s utilized to hedge interest rate risk prior to the debt issuance.Amount includes the change in fair value due to changes in benchmark interest rates related to hedging$350.0 million of our August 2029 notes.Refer toNote 3,Derivative Financial Instruments,for additional information on our interest r

143、ate swap agreements designated as fair value hedges.The following table summarizes our long-term debt maturities as of March 30,2025 by fiscal year(in millions):Fiscal YearTotal2025$1,250.0 20261,500.0 20271,500.0 2028600.0 20291,750.0 Thereafter9,100.0 Total$15,700.0(1)(2)(2)(1)(2)21Table of Conten

144、tsNote 9:LeasesThe components of lease costs(in millions):Quarter EndedTwo Quarters EndedMar 30,2025Mar 31,2024Mar 30,2025Mar 31,2024Operating lease costs$458.4$424.1$917.2$841.5 Variable lease costs297.5 271.7 590.9 543.6 Short-term lease costs5.3 7.2 10.8 14.9 Total lease costs$761.2$703.0$1,518.9

145、$1,400.0 Includes immaterial amounts of sublease income and rent concessions.The following table includes supplemental information(in millions):Two Quarters EndedMar 30,2025Mar 31,2024Cash paid related to operating lease liabilities$928.8$778.8 Operating lease liabilities arising from obtaining righ

146、t-of-use assets1,076.6 980.5 Mar 30,2025Mar 31,2024Weighted-average remaining operating lease term8.6 years8.6 yearsWeighted-average operating lease discount rate3.6%3.2%Includes leases obtained in the acquisition of 23.5 Degrees Topco Limited in the first quarter of fiscal 2025.Finance lease assets

147、 are recorded in property,plant and equipment,net with the corresponding lease liabilities included in accrued liabilities and other long-term liabilities on the consolidated balance sheets.These balances were not material as of March 30,2025 and September 29,2024.Finance lease costs werealso immate

148、rial for the quarters ended March 30,2025 and March 31,2024.Minimum future maturities of operating lease liabilities(in millions):Fiscal YearTotal2025(excluding the two quarters ended March 30,2025)$932.7 20261,796.3 20271,630.6 20281,434.9 20291,251.3 Thereafter5,188.9 Total lease payments12,234.7

149、Less imputed interest(1,797.0)Total$10,437.7 As of March 30,2025,we have entered into operating leases that have not yet commenced of$1.5 billion,primarily related to real estate leases.These leaseswill commence between fiscal year 2025 and fiscal year 2029 with lease terms ranging from five years t

150、o twenty years.Note 10:Deferred RevenueOur deferred revenue primarily consists of the prepaid royalty from Nestl,for which we have continuing performance obligations to support the Global CoffeeAlliance,our unredeemed stored value card liability,and unredeemed loyalty points(“Stars”)associated with

151、our loyalty program.As of March 30,2025,the current and long-term deferred revenue related to the Nestl up-front payment was$177.0 million and$5.7 billion,respectively.Asof September 29,2024,the current and long-term deferred revenue related to the Nestl up-front payment was$177.0 million and$5.8 bi

152、llion,respectively.During each of the quarters ended March 30,2025 and March 31,2024,we recognized$44.1 million of prepaid royalty revenue related to Nestl.During eachof the two quarters ended March 30,2025 and March 31,2024,we recognized$88.2 million of prepaid royalty revenue related to Nestl.(1)(

153、1)(1)(1)22Table of ContentsChanges in our deferred revenue balance related to our stored value cards and loyalty program(in millions):Quarter Ended March 30,2025TotalStored value cards and loyalty program at December 29,2024$2,213.1 Revenue deferred-card activations,card reloads and Stars earned3,49

154、6.8 Revenue recognized-card and Stars redemptions and breakage(3,862.9)Other6.2 Stored value cards and loyalty program at March 30,2025$1,853.2 Quarter Ended March 31,2024TotalStored value cards and loyalty program at December 31,2023$2,169.7 Revenue deferred-card activations,card reloads and Stars

155、earned3,456.5 Revenue recognized-card and Stars redemptions and breakage(3,792.4)Other(14.9)Stored value cards and loyalty program at March 31,2024$1,818.9 Two Quarters Ended March 30,2025TotalStored value cards and loyalty program at September 29,2024$1,718.7 Revenue deferred-card activations,card

156、reloads and Stars earned7,911.2 Revenue recognized-card and Stars redemptions and breakage(7,755.8)Other(20.9)Stored value cards and loyalty program at March 30,2025$1,853.2 Two Quarters Ended March 31,2024TotalStored value cards and loyalty program at October 1,2023$1,567.5 Revenue deferred-card ac

157、tivations,card reloads and Stars earned8,143.7 Revenue recognized-card and Stars redemptions and breakage(7,890.8)Other(1.5)Stored value cards and loyalty program at March 31,2024$1,818.9“Other”primarily consists of changes in the stored value cards and loyalty program balances resulting from foreig

158、n currency translation.As of March 30,2025 and March 31,2024,approximately$1.7 billion of these amounts were current.(1)(2)(1)(2)(1)(2)(1)(2)(1)(2)23Table of ContentsNote 11:EquityChanges in AOCI by component,net of tax(in millions):Quarter Ended Available-for-SaleDebt Securities Cash FlowHedges Net

159、 InvestmentHedgesTranslationAdjustment andOtherTotalMarch 30,2025Net gains/(losses)in AOCI,beginning of period$(3.7)$94.2$382.1$(1,056.2)$(583.6)Net gains/(losses)recognized in OCI before reclassifications1.7(4.9)9.8 90.6 97.2 Net(gains)/losses reclassified from AOCI to earnings0.2(22.0)(20.8)(42.6)

160、Other comprehensive income/(loss)attributable to Starbucks1.9(26.9)(11.0)90.6 54.6 Net gains/(losses)in AOCI,end of period$(1.8)$67.3$371.1$(965.6)$(529.0)March 31,2024Net gains/(losses)in AOCI,beginning of period$(7.9)$15.7$217.7$(783.3)$(557.8)Net gains/(losses)recognized in OCI before reclassific

161、ations(0.3)27.1 69.2(150.0)(54.0)Net(gains)/losses reclassified from AOCI to earnings0.3(2.2)(7.7)(9.6)Other comprehensive income/(loss)attributable to Starbucks 24.9 61.5(150.0)(63.6)Other comprehensive income/(loss)attributable to NCI (0.1)(0.1)Net gains/(losses)in AOCI,end of period$(7.9)$40.6$27

162、9.2$(933.4)$(621.5)Two Quarters EndedAvailable-for-SaleDebt SecuritiesCash FlowHedgesNet InvestmentHedgesTranslationAdjustment andOtherTotalMarch 30,2025Net gains/(losses)in AOCI,beginning of period$(2.3)$70.5$247.7$(744.7)$(428.8)Net gains/(losses)recognized in OCI before reclassifications0.1 46.6

163、164.9(220.6)(9.0)Net(gains)/losses reclassified from AOCI to earnings0.4(49.8)(41.5)(90.9)Other comprehensive income/(loss)attributable to Starbucks0.5(3.2)123.4(220.6)(99.9)Other comprehensive income/(loss)attributable to NCI (0.3)(0.3)Net gains/(losses)in AOCI,end of period$(1.8)$67.3$371.1$(965.6

164、)$(529.0)March 31,2024Net gains/(losses)in AOCI,beginning of period$(12.3)$(47.5)$243.3$(961.7)$(778.2)Net gains/(losses)recognized in OCI before reclassifications3.9 60.7 50.3 28.2 143.1 Net(gains)/losses reclassified from AOCI to earnings0.5 27.4(14.4)13.5 Other comprehensive income/(loss)attribut

165、able to Starbucks4.4 88.1 35.9 28.2 156.6 Other comprehensive income/(loss)attributable to NCI 0.1 0.1 Net gains/(losses)in AOCI,end of period$(7.9)$40.6$279.2$(933.4)$(621.5)24Table of ContentsImpact of reclassifications from AOCI on the consolidated statements of earnings(in millions):Quarter Ende

166、dAOCIComponentsAmounts Reclassified from AOCIAffected Line Item inthe Statements of EarningsMar 30,2025Mar 31,2024Gains/(losses)on available-for-sale debt securities$(0.2)$(0.4)Interest income and other,netGains/(losses)on cash flow hedges27.0 3.8 Please refer to Note 3,Derivative Financial Instrume

167、ntsfor additional information.Gains/(losses)on net investment hedges27.7 10.2 Interest expense54.5 13.6 Total before tax(11.9)(4.0)Tax(expense)/benefit$42.6$9.6 Net of taxTwo Quarters EndedAOCIComponentsAmounts Reclassified from AOCIAffected Line Item inthe Statements of EarningsMar 30,2025Mar 31,20

168、24Gains/(losses)on available-for-sale debt securities$(0.4)$(0.7)Interest income and other,netGains/(losses)on cash flow hedges66.4(29.7)Please refer to Note 3,Derivative Financial Instrumentsfor additional information.Gains/(losses)on net investment hedges55.4 19.1 Interest expense121.4(11.3)Total

169、before tax(30.5)(2.2)Tax(expense)/benefit$90.9$(13.5)Net of taxIn addition to 2.4 billion shares of authorized common stock with$0.001 par value per share,we have 7.5 million shares of authorized preferred stock,none ofwhich was outstanding as of March 30,2025.During the two quarters ended March 30,

170、2025,we made no share repurchases.During the two quarters ended March 31,2024,we repurchased 12.8 millionshares of common stock on the open market for$1,250.1 million.As of March 30,2025,29.8 million shares remained available for repurchase under currentauthorizations.During the second quarter of fi

171、scal 2025,our Board of Directors approved a quarterly cash dividend to shareholders of$0.61 per share to be paid on May 30,2025 to shareholders of record as of the close of business on May 16,2025.Note 12:Employee Stock PlansAs of March 30,2025,there were 75.3 million shares of common stock availabl

172、e for issuance pursuant to future equity-based compensation awards and 9.4million shares available for issuance under our employee stock purchase plan.Stock-based compensation expense recognized in the consolidated statements of earnings(in millions):Quarter EndedTwo Quarters Ended Mar 30,2025Mar 31

173、,2024Mar 30,2025Mar 31,2024Restricted Stock Units(“RSUs”)$77.8$78.3$178.3$173.2 Options(0.1)(0.2)Total stock-based compensation expense$77.8$78.2$178.3$173.0 25Table of ContentsStock option and RSU transactions from September 29,2024 through March 30,2025(in millions):Stock OptionsRSUsOptions outsta

174、nding/Nonvested RSUs,September 29,20240.9 8.7 Granted 4.4 Options exercised/RSUs vested(0.3)(2.9)Forfeited/expired(1.4)Options outstanding/Nonvested RSUs,March 30,20250.6 8.8 Total unrecognized stock-based compensation expense,net of estimated forfeitures,as of March 30,2025$347.5 Note 13:Earnings p

175、er ShareCalculation of net earnings per common share(“EPS”)basic and diluted(in millions,except EPS):Quarter EndedTwo Quarters EndedMar 30,2025Mar 31,2024Mar 30,2025Mar 31,2024Net earnings attributable to Starbucks$384.2$772.4$1,165.0$1,796.8 Weighted average common shares outstanding(for basiccalcu

176、lation)1,136.0 1,132.4 1,135.3 1,134.5 Dilutive effect of outstanding common stock options and RSUs4.0 3.0 3.9 3.5 Weighted average common and common equivalent sharesoutstanding(for diluted calculation)1,140.0 1,135.4 1,139.2 1,138.0 EPS basic$0.34$0.68$1.03$1.58 EPS diluted$0.34$0.68$1.02$1.58 Pot

177、ential dilutive shares consist of the incremental common shares issuable upon the exercise of outstanding stock options(both vested and non-vested)andunvested RSUs,calculated using the treasury stock method.The calculation of dilutive shares outstanding excludes anti-dilutive stock options or unvest

178、edRSUs,which were immaterial in the periods presented.Note 14:Commitments and ContingenciesLegal ProceedingsStarbucks is involved in various legal proceedings arising in the ordinary course of business,including litigation matters associated with labor union organizingefforts and certain employment

179、litigation cases that have been certified as class or collective actions,but is not currently a party to any legal proceeding thatmanagement believes could have a material adverse effect on our consolidated financial position,results of operations,or cash flows.While we are closelymonitoring the ope

180、rational and financial impacts of labor union organizing efforts on our business,as of the date of this filing,we believe the risk of a materialcontingent loss associated with these litigation matters is remote.Refer to the Risk Factors in Part I,Item 1A of our most recently filed 10-K for furtherdi

181、scussion of potential risks to our brand and related impacts on our financial results.Note 15:Segment ReportingSegment information is prepared on the same basis that our chief executive officer,who is our Chief Operating Decision Maker,manages the segments,evaluates financial results,and makes key o

182、perating decisions.Consolidated revenue mix by product type(in millions):Quarter EndedTwo Quarters EndedMar 30,2025Mar 31,2024Mar 30,2025Mar 31,2024Beverage$5,293.6 60%$5,160.6 60%$10,971.6 60%$10,856.4 60%Food1,691.9 19%1,583.0 18%3,482.3 19%3,339.9 19%Other1,776.1 21%1,819.4 22%3,705.5 21%3,792.0

183、21%Total$8,761.6 100%$8,563.0 100%$18,159.4 100%$17,988.3 100%“Beverage”represents sales within our company-operated stores.“Food”includes sales within our company-operated stores.“Other”primarily consists of packaged and single-serve coffees and teas,royalty and licensing revenues,beverage-related

184、ingredients,and serveware,among other items.(1)(2)(3)(1)(2)(3)26Table of ContentsThe tables below present financial information for our reportable operating segments and Corporate and Other(in millions):Quarter EndedNorth AmericaInternationalChannelDevelopmentCorporate andOtherTotalMarch 30,2025Tota

185、l net revenues$6,472.7$1,867.1$409.0$12.8$8,761.6 Depreciation and amortization expenses299.2 89.0 30.7 418.9 Income/(loss)from equity investees(0.2)59.3 59.1 Operating income/(loss)$748.3$217.0$193.5$(557.8)$601.0 March 31,2024Total net revenues$6,380.0$1,757.3$418.2$7.5$8,563.0 Depreciation and am

186、ortization expenses257.1 84.3 30.5 371.9 Income/(loss)from equity investees 0.2 67.8 68.0 Operating income/(loss)$1,148.3$233.8$216.3$(499.5)$1,098.9 Two Quarters EndedNorth AmericaInternationalChannelDevelopmentCorporate andOtherTotalMarch 30,2025Total net revenues$13,544.6$3,738.4$845.3$31.1$18,15

187、9.4 Depreciation and amortization expenses588.1 178.1 60.0 826.2 Income from equity investees(0.7)106.2 105.5 Operating income/(loss)$1,929.6$454.1$401.6$(1,062.5)$1,722.8 March 31,2024Total net revenues$13,500.7$3,603.6$866.2$17.8$17,988.3 Depreciation and amortization expenses507.5 168.3 61.4 737.

188、2 Income from equity investees 0.3 123.5 123.8 Operating income/(loss)$2,669.1$475.3$426.0$(986.1)$2,584.3 Note 16:RestructuringIn the fourth quarter of fiscal 2024,we announced our“Back to Starbucks”strategy,which was implemented with the goal to bring customers back to ourstores and return to grow

189、th.As part of this strategy,during the second quarter of fiscal 2025,we further decided and announced our plan to restructure oursupport organization in an effort to operate more efficiently,increase accountability,reduce complexity,and drive better integration,which resulted in areduction in our su

190、pport partner workforce.During the quarter ended March 30,2025,we recognized pre-tax restructuring charges of$116.2 million,primarilyassociated with partner severance costs.These costs were recorded to restructuring on our consolidated statement of earnings.As of March 30,2025,approximately$69 milli

191、on of severance costs remained in accrued payroll and benefits on our consolidated balance sheet.27Table of ContentsItem 2.Managements Discussion and Analysis of Financial Condition and Results of OperationsCAUTIONARY STATEMENT PURSUANT TO THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995Certain

192、statements contained herein are“forward-looking”statements within the meaning of applicable securities laws and regulations.Generally,thesestatements can be identified by the use of words such as“aim,”“anticipate,”“believe,”“continue,”“could,”“estimate,”“expect,”“feel,”“forecast,”“intend,”“may,”“out

193、look,”“plan,”“potential,”“predict,”“project,”“seek,”“should,”“will,”“would,”and similar expressions intended to identifyforward-looking statements,although not all forward-looking statements contain these identifying words.By their nature,forward-looking statements involverisks,uncertainties,and oth

194、er factors(many beyond our control)that could cause our actual results to differ materially from our historical experience or fromour current expectations or projections.Our forward-looking statements,and the risks and uncertainties related thereto,include,but are not limited to,thosedescribed under

195、 the“Risk Factors”and“Managements Discussion and Analysis of Financial Condition and Results of Operations”sections of our mostrecently filed 10-K and 10-Q and in other reports we file with the SEC,as well as,among others:our ability to preserve,grow,and leverage our brands,including the risk of neg

196、ative responses by consumers(such as boycotts or negative publicitycampaigns),governmental actors(such as retaliatory or threatened legislative treatment or other actions),or other third parties who object to certain actionstaken or not taken by the Company,whose responses could adversely affect our

197、 brand value;the impact of our marketing strategies,promotional and advertising plans,pricing strategies,platforms,reformulations,innovations,or customer experienceinitiatives or investments;the costs and risks associated with,and the successful execution and effects of,our existing and any future b

198、usiness opportunities,expansions,initiatives,strategies,investments,and plans,including our“Back to Starbucks”plan;our ability to align our investment efforts with our strategic goals;changes in consumer preferences,demand,consumption,or spending behavior,including due to shifts in demographic or he

199、alth and wellness trends,reduction in discretionary spending and price increases,and our ability to anticipate or react to these changes;the ability of our business partners,suppliers,and third-party providers to fulfill their responsibilities and commitments;the potential negative effects of report

200、ed incidents involving food-or beverage-borne illnesses,tampering,adulteration,contamination,or mislabeling;our ability to open new stores and efficiently maintain the attractiveness of our existing stores;our dependence on the financial performance of our North America operating segment,and our inc

201、reasing dependence on certain international markets;our anticipated cash requirements and operating expenses,including our anticipated total capital expenditures;inherent risks of operating a global business,including changing conditions in our markets,local factors affecting store openings,protecti

202、onist trade orforeign investment policies,such as tariffs and other trade controls,economic or trade sanctions,compliance with local laws and other regulations,and locallabor policies and conditions,including labor strikes and work stoppages;higher costs,lower quality,or unavailability of coffee,dai

203、ry,cocoa,energy,water,raw materials,or product ingredients;the potential impact on our supply chain and operations of adverse weather conditions,natural disasters,or significant increases in logistics costs;the ability of our supply chain to meet current or future business needs and our ability to s

204、cale and improve our forecasting,planning,production,andlogistics management;a worsening in the terms and conditions upon which we engage with our manufacturers and source suppliers,whether resulting from broader local or globalconditions or dynamics specific to our relationships with such parties;t

205、he impact of unfavorable global or regional economic conditions and related economic slowdowns or recessions,low consumer confidence,highunemployment,weak credit or capital markets,budget deficits,burdensome government debt,austerity measures,higher interest rates,higher taxes,international trade di

206、sputes,government restrictions,geopolitical instability,higher inflation,or deflation;failure to meet our announced guidance or market expectations and the impact thereof;failure to attract or retain key executive or partner talent or successfully transition executives;the impacts of partner investm

207、ents and changes in the availability and cost of labor,including any union organizing efforts and our responses to such efforts;the impact of foreign currency translation,particularly a stronger U.S.dollar;the impact of,and our ability to respond to,substantial competition from new entrants,consolid

208、ations by competitors,and other competitive activities,suchas pricing actions(including price reductions,promotions,discounting,couponing,or free goods),marketing,category expansion,product introductions,orentry or expansion in our geographic markets;potential impacts of climate change;evolving corp

209、orate governance and public disclosure regulations and expectations;the potential impact of activist shareholder actions or tactics;failure to comply with applicable laws and changing legal and regulatory requirements;the impact or likelihood of significant legal disputes and proceedings or governme

210、nt investigations;28Table of Contents potential negative effects of,and our ability to respond to,a material failure,inadequacy,or interruption of our information technology systems or those ofour third-party business partners or service providers,or failure to comply with data protection laws;and o

211、ur ability to adequately protect our intellectual property or adequately ensure that we are not infringing the intellectual property of others.In addition,many of the foregoing risks and uncertainties are,or could be,exacerbated by any worsening of the global business and economic environment.Aforwa

212、rd-looking statement is neither a prediction nor a guarantee of future events or circumstances,and those future events or circumstances may not occur.You should not place undue reliance on the forward-looking statements,which speak only as of the date of this report.We are under no obligation to upd

213、ate oralter any forward-looking statements,whether as a result of new information,future events,or otherwise.This information should be read in conjunction with the unaudited consolidated financial statements and the notes included in Item 1 of Part I of this 10-Q andthe audited consolidated financi

214、al statements and notes,and Managements Discussion and Analysis of Financial Condition and Results of Operations(“MD&A”),contained in the 10-K.29Table of ContentsIntroduction and OverviewStarbucks is the premier roaster,marketer,and retailer of specialty coffee globally,with a presence in 88 markets

215、 worldwide.As of March 30,2025,Starbuckshad more than 40,700 company-operated and licensed stores,an increase of 5%from the prior year.Additionally,we sell a variety of consumer-packagedgoods,primarily through the Global Coffee Alliance established with Nestl and other partnerships and joint venture

216、s.We have three reportable operating segments:1)North America,which is inclusive of the U.S.and Canada;2)International,which is inclusive of China,Japan,Asia Pacific,Europe,Middle East,Africa,Latin America,and the Caribbean;and 3)Channel Development.Unallocated corporate expenses are reportedwithin

217、Corporate and Other.We believe our financial results and long-term growth model will continue to be driven by new store openings,comparable store sales,and operating marginmanagement,underpinned by disciplined capital allocation.We believe these key operating metrics are useful to investors because

218、management uses thesemetrics to assess the growth of our business and the effectiveness of our marketing and operational strategies.Throughout this MD&A,we commonly discussthe following key operating metrics:New store openings and store countComparable store salesOperating marginComparable store sal

219、es represents the percentage change in sales in one period from the same prior year period for company-operated stores open for 13months or longer and excludes the impact of foreign currency translation.We analyze comparable store sales on a constant currency basis as this helps identifyunderlying b

220、usiness trends,without distortion from the effects of currency movements.Stores that are temporarily closed or operating at reduced hours remainin comparable store sales while stores identified for permanent closure have been removed.Our fiscal year ends on the Sunday closest to September 30.Fiscal

221、2025 and 2024 include 52 weeks.All references to store counts,including data for new storeopenings,are reported net of store closures,unless otherwise noted.Starbucks results for the second quarter of fiscal 2025 showed continued early progress on our“Back to Starbucks”strategy,as we focus on future

222、 growth andstronger returns on invested capital.During the second quarter of fiscal 2025,consolidated net revenues increased 2%to$8.8 billion compared to$8.6 billionin the second quarter of fiscal 2024,primarily driven by incremental revenues from net new company-operated store openings over the pas

223、t 12 months,partially offset by unfavorable foreign currency translation impacts and a decrease in global comparable store sales.During the quarter ended March 30,2025,our global comparable store sales declined 1%,primarily driven by a 2%decline in the U.S.market,partially offset by a 2%improvement

224、internationally.Specific to the U.S.market,the decrease in comparable store sales was driven by a 4%decrease in comparable transactions,partially offset by a 3%increase inaverage ticket,primarily due to annualization of pricing and fewer discounts in the current year.Consolidated operating margin co

225、ntracted 590 basis pointsfrom the prior year to 6.9%,primarily driven by deleverage,additional labor,largely in support of“Back to Starbucks,”and restructuring costs related tosimplifying our global support organization.We expect that the balance of this fiscal year will bring some challenges as we

226、navigate a dynamic macroeconomic environment,including tariffs and volatilecoffee prices.In each case,we are actively monitoring and taking actions where necessary to mitigate potential financial impacts,including further diversifyingand redirecting coffee shipments to minimize tariffs,and,with resp

227、ect to shifting coffee prices,opportunistically building our supply and securing pricing.Weare also evaluating our global store portfolio,new store pipeline,and operations,which may result in additional restructuring charges in the near term.Goingforward,we will focus on greater new store returns an

228、d enhancing the coffeehouse experience for both our partners and customers,while also reducing newstore build costs.Despite the challenging macroeconomic environment,we continue to feel confident in our“Back to Starbucks”strategy and will continuemaking intentional investments to stabilize the busin

229、ess and return to long-term,profitable growth.30Table of ContentsResults of Operations(in millions)Revenues Quarter EndedTwo Quarters EndedMar 30,2025Mar 31,2024$Change%ChangeMar 30,2025Mar 31,2024$Change%ChangeCompany-operated stores$7,285.0$7,052.6$232.4 3.3%$15,070.3$14,807.9$262.4 1.8%Licensed s

230、tores1,016.0 1,054.5(38.5)(3.7)2,151.7 2,246.6(94.9)(4.2)Other460.6 455.9 4.7 1.0 937.4 933.8 3.6 0.4 Total net revenues$8,761.6$8,563.0$198.6 2.3%$18,159.4$17,988.3$171.1 1.0%For the quarter ended March 30,2025 compared with the quarter ended March 31,2024Total net revenues for the second quarter o

231、f fiscal 2025 increased$199 million,primarily due to higher revenues from company-operated stores($232 million),partially offset by a decrease in revenues from licensed stores($39 million).Company-operated store revenue increased$232 million,primarily driven by incremental revenues from 1,283 net ne

232、w company-operated stores,or a 6%increase,over the past 12 months($296 million),and incremental revenue from the conversion of 113 licensed stores to company-operated stores($30 million)following the acquisition of 23.5 Degrees Topco Limited,a U.K.licensed business partner,during the first quarter o

233、f fiscal 2025.These increases in netrevenue were partially offset by a 1%decrease in comparable store sales($49 million),attributable to a 2%decrease in comparable transactions,partially offsetby a 1%increase in average ticket,as well as unfavorable foreign currency translation impacts($48 million).

234、Licensed stores revenue decreased$39 million,primarily driven by lower product and equipment sales to,and royalty revenues from,our licensees in ourNorth America segment($40 million),unfavorable foreign currency translation impacts($11 million),and the impact of the acquisition of 23.5 Degrees Topco

235、Limited($8 million).These decreases in licensed stores revenue were partially offset by an increase in product sales to,and royalty revenues from,ourlicensees in our International segment($25 million).For the two quarters ended March 30,2025 compared with the two quarters ended March 31,2024Total ne

236、t revenues for the first two quarters of fiscal 2025 increased$171 million,primarily due to higher revenues from company-operated stores($262million),partially offset by a decrease in revenues from licensed stores($95 million).Company-operated store revenue increased$262 million,primarily driven by

237、incremental revenues from 1,283 net new company-operated stores,or a 6%increase,over the past 12 months($598 million)and incremental revenue from the conversion of 113 licensed stores to company-operated stores($57 million)following the acquisition of 23.5 Degrees Topco Limited.These increases in ne

238、t revenue were partially offset by a 2%decrease in comparable store sales($331million),attributable to a 4%decrease in comparable transactions,partially offset by a 2%increase in average ticket,as well as unfavorable foreign currencytranslation impacts($66 million).Licensed stores revenue decreased$

239、95 million,primarily driven by lower product and equipment sales to,and royalty revenues from,our licensees in ourNorth America segment($74 million),unfavorable foreign currency translation impacts($20 million),and the impact of the acquisition of 23.5 Degrees TopcoLimited($17 million).These decreas

240、es in licensed stores revenue were partially offset by an increase in product sales to,and royalty revenues from,ourlicensees in our International segment($22 million).31Table of ContentsOperating Expenses Quarter EndedTwo Quarters EndedMar 30,2025Mar 31,2024$ChangeMar 30,2025Mar 31,2024Mar 30,2025M

241、ar 31,2024$ChangeMar 30,2025Mar 31,2024As a%ofTotal Net RevenuesAs a%ofTotal Net RevenuesProduct anddistribution costs$2,737.6$2,648.7$88.9 31.2%30.9%$5,631.3$5,629.2$2.1 31.0%31.3%Store operatingexpenses4,176.0 3,724.1 451.9 47.7 43.5 8,379.1 7,575.6 803.5 46.1 42.1 Other operatingexpenses138.7 132

242、.8 5.9 1.6 1.6 291.3 283.2 8.1 1.6 1.6 Depreciation andamortization expenses418.9 371.9 47.0 4.8 4.3 826.2 737.2 89.0 4.5 4.1 General andadministrativeexpenses632.3 654.6(22.3)7.2 7.6 1,298.0 1,302.6(4.6)7.1 7.2 Restructuring116.2 116.2 1.3 116.2 116.2 0.6 Total operatingexpenses8,219.7 7,532.1 687.

243、6 93.8 88.0 16,542.1 15,527.8 1,014.3 91.1 86.3 Income from equityinvestees59.1 68.0(8.9)0.7 0.8 105.5 123.8(18.3)0.6 0.7 Operating income$601.0$1,098.9$(497.9)6.9%12.8%$1,722.8$2,584.3$(861.5)9.5%14.4%Store operating expenses as a%ofcompany-operated stores revenue57.3%52.8%55.6%51.2%For the quarter

244、 ended March 30,2025 compared with the quarter ended March 31,2024Product and distribution costs as a percentage of total net revenues increased 30 basis points for the second quarter of fiscal 2025,primarily due to inflation andrising coffee prices(approximately 60 basis points),partially offset by

245、 supply chain efficiencies(approximately 50 basis points).Store operating expenses as a percentage of total net revenues increased 420 basis points for the second quarter of fiscal 2025.Store operating expenses as apercentage of company-operated stores revenue increased 450 basis points,primarily du

246、e to deleverage(approximately 200 basis points)and additional labor,largely in support of“Back to Starbucks”(approximately 180 basis points).Depreciation and amortization expenses as a percentage of total net revenues increased 50 basis points,primarily due to deleverage.General and administrative e

247、xpenses decreased$22 million,primarily due to lapping certain proxy solicitation and advisory services costs($30 million).Restructuring was$116 million,largely due to costs associated with simplifying our support organization,primarily severance costs,in support of our“Back toStarbucks”strategy.The

248、combination of these changes resulted in an overall decrease in operating margin of 590 basis points for the second quarter of fiscal 2025.For the two quarters ended March 30,2025 compared with the two quarters ended March 31,2024Product and distribution costs as a percentage of total net revenues d

249、ecreased 30 basis points for the first two quarters of fiscal 2025,primarily due to supplychain efficiencies(approximately 60 basis points),partially offset by inflation and rising coffee prices(approximately 50 basis points).Store operating expenses as a percentage of total net revenues increased 4

250、00 basis points for the first two quarters of fiscal 2025.Store operating expenses as apercentage of company-operated stores revenue increased 440 basis points,primarily due to deleverage(approximately 230 basis points)and additional labor,largely in support of“Back to Starbucks”(approximately 160 b

251、asis points).Depreciation and amortization expenses as a percentage of total net revenues increased 40 basis points,primarily due to deleverage.32Table of ContentsGeneral and administrative expenses decreased$5 million,primarily due to lapping certain proxy solicitation and advisory services costs($

252、30 million),partially offset by increased costs to support leadership transitions($22 million).Restructuring was$116 million,largely due to costs associated with simplifying our support organization,primarily severance costs,in support of our“Back toStarbucks”strategy.Income from equity investees de

253、creased$18 million,primarily due to lower income from our North American Coffee Partnership joint venture.The combination of these changes resulted in an overall decrease in operating margin of 490 basis points for the first two quarters of fiscal 2025.Other Income and Expenses Quarter EndedTwo Quar

254、ters EndedMar 30,2025Mar 31,2024$ChangeMar 30,2025Mar 31,2024Mar 30,2025Mar 31,2024$ChangeMar 30,2025Mar 31,2024As a%of TotalNet RevenuesAs a%of TotalNet RevenuesOperating income$601.0$1,098.9$(497.9)6.9%12.8%$1,722.8$2,584.3$(861.5)9.5%14.4%Interest income and other,net28.4 34.1(5.7)0.3 0.4 56.2 67

255、.9(11.7)0.3 0.4 Interest expense(127.3)(140.6)13.3(1.5)(1.6)(254.5)(280.7)26.2(1.4)(1.6)Earnings beforeincome taxes502.1 992.4(490.3)5.7 11.6 1,524.5 2,371.5(847.0)8.4 13.2 Income tax expense118.0 219.9(101.9)1.3 2.6 359.4 574.6(215.2)2.0 3.2 Net earnings includingnoncontrollinginterests384.1 772.5(

256、388.4)4.4 9.0 1,165.1 1,796.9(631.8)6.4 10.0 Net earnings/(loss)attributable tononcontrollinginterests(0.1)0.1(0.2)0.0 0.0 0.1 0.1 0.0 0.0 Net earningsattributable toStarbucks$384.2$772.4$(388.2)4.4%9.0%$1,165.0$1,796.8$(631.8)6.4%10.0%Effective tax rate includingnoncontrolling interests23.5%22.2%23

257、.6%24.2%For the quarter ended March 30,2025 compared with the quarter ended March 31,2024Interest income and other,net,decreased$6 million,primarily due to lower interest rates in the current year.Interest expense decreased$13 million,primarily due to savings from cross-currency interest rate hedgin

258、g,partially offset by higher interest rates on refinancedlong-term debt.The effective tax rate for the quarter ended March 30,2025 was 23.5%compared to 22.2%for the same period in fiscal 2024.The increase was primarily dueto lapping the election of an alternative tax approach in a certain foreign ju

259、risdiction that resulted in a tax benefit in the second quarter of fiscal 2024(approximately 300 basis points),partially offset by the effect of lower pre-tax earnings and the proportionate impacts from certain permanent differences anddiscrete items.For the two quarters ended March 30,2025 compared

260、 with the two quarters ended March 31,2024Interest income and other,net,decreased$12 million,primarily due to lower interest rates in the current year.Interest expense decreased$26 million,primarily due to savings from cross-currency interest rate hedging,partially offset by higher interest rates on

261、 refinancedlong-term debt.The effective tax rate for the first two quarters ended March 30,2025 was 23.6%compared to 24.2%for the same period in fiscal 2024.The decrease wasprimarily due to the discrete impact of a tax status change for a certain foreign entity33Table of Contents(approximately 200 b

262、asis points),partially offset by lapping the election of an alternative tax approach in a certain foreign jurisdiction that resulted in a taxbenefit in the second quarter of fiscal 2024(approximately 130 basis points).34Table of ContentsSegment InformationResults of operations by segment(in millions

263、):North America Quarter EndedTwo Quarters EndedMar 30,2025Mar 31,2024$ChangeMar 30,2025Mar 31,2024Mar 30,2025Mar 31,2024$ChangeMar 30,2025Mar 31,2024As a%of North AmericaTotal Net RevenuesAs a%of North AmericaTotal Net RevenuesNet revenues:Company-operatedstores$5,861.7$5,724.5$137.2 90.6%89.7%$12,2

264、29.5$12,105.7$123.8 90.3%89.7%Licensed stores610.3 654.8(44.5)9.4 10.3 1,313.0 1,392.7(79.7)9.7 10.3 Other0.7 0.7 0.0 0.0 2.1 2.3(0.2)0.0 0.0 Total net revenues6,472.7 6,380.0 92.7 100.0 100.0 13,544.6 13,500.7 43.9 100.0 100.0 Product anddistribution costs1,807.1 1,767.7 39.4 27.9 27.7 3,774.6 3,79

265、1.6(17.0)27.9 28.1 Store operatingexpenses3,431.6 3,037.4 394.2 53.0 47.6 6,890.1 6,185.1 705.0 50.9 45.8 Other operatingexpenses68.6 67.1 1.5 1.1 1.1 147.0 144.5 2.5 1.1 1.1 Depreciation andamortizationexpenses299.2 257.1 42.1 4.6 4.0 588.1 507.5 80.6 4.3 3.8 General andadministrativeexpenses96.6 1

266、02.4(5.8)1.5 1.6 193.9 202.9(9.0)1.4 1.5 Restructuring21.3 21.3 0.3 21.3 21.3 0.2 0.0 Total operatingexpenses5,724.4 5,231.7 492.7 88.4 82.0 11,615.0 10,831.6 783.4 85.8 80.2 Operating income$748.3$1,148.3$(400.0)11.6%18.0%$1,929.6$2,669.1$(739.5)14.2%19.8%Store operating expenses as a%ofcompany-ope

267、rated stores revenue58.5%53.1%56.3%51.1%For the quarter ended March 30,2025 compared with the quarter ended March 31,2024RevenuesNorth America total net revenues for the second quarter of fiscal 2025 increased$93 million,or 1%,primarily driven by net new company-operated storegrowth of 5%,or 504 sto

268、res,over the past 12 months($226 million).This growth was partially offset by a net 1%decrease in comparable store sales($70million),driven by a 4%decrease in comparable transactions,partially offset by a 3%increase in average ticket,primarily due to annualization of prior yearpricing and fewer disc

269、ounts in the current year.Also contributing were lower product and equipment sales to,and royalty revenues from,our licensees($40million).Operating MarginNorth America operating income for the second quarter of fiscal 2025 decreased 35%to$748 million,compared to$1.1 billion in the second quarter of

270、fiscal2024.Operating margin contracted 640 basis points to 11.6%,primarily driven by deleverage(approximately 300 basis points)and additional labor,largely insupport of“Back to Starbucks”(approximately 230 basis points).35Table of ContentsFor the two quarters ended March 30,2025 compared with the tw

271、o quarters ended March 31,2024RevenuesNorth America total net revenues for the first two quarters of fiscal 2025 increased$44 million primarily driven by net new company-operated store growth5%,or 504 stores,over the past 12 months($456 million).This growth was partially offset by a a net 3%decrease

272、 in comparable store sales($304 million)driven by a 6%decrease in comparable transactions,partially offset by a 3%increase in average ticket,primarily due to annualization of prior year pricing andfewer discounts in the current year.Also contributing were lower product and equipment sales to,and roy

273、alty revenues from,our licensees($74 million).Operating MarginNorth America operating income for the first two quarters of fiscal 2025 decreased 28%to$1.9 billion,compared to$2.7 billion in the first two quarters offiscal 2024.Operating margin contracted 560 basis points to 14.2%,primarily driven by

274、 deleverage(approximately 330 basis points)and additional labor,largely in support of“Back to Starbucks”(approximately 190 basis points).International Quarter EndedTwo Quarters Ended Mar 30,2025Mar 31,2024$ChangeMar 30,2025Mar 31,2024Mar 30,2025Mar 31,2024$ChangeMar 30,2025Mar 31,2024As a%of Interna

275、tionalTotal Net RevenuesAs a%of InternationalTotal Net RevenuesNet revenues:Company-operatedstores$1,423.3$1,328.1$95.2 76.2%75.6%$2,840.8$2,702.2$138.6 76.0%75.0%Licensed stores405.7 399.7 6.0 21.7 22.7 838.7 853.9(15.2)22.4 23.7 Other38.1 29.5 8.6 2.0 1.7 58.9 47.5 11.4 1.6 1.3 Total net revenues1

276、,867.1 1,757.3 109.8 100.0 100.0 3,738.4 3,603.6 134.8 100.0 100.0 Product anddistribution costs659.8 619.8 40.0 35.3 35.3 1,306.8 1,286.4 20.4 35.0 35.7 Store operatingexpenses744.4 686.7 57.7 39.9 39.1 1,489.0 1,390.5 98.5 39.8 38.6 Other operatingexpenses55.1 50.0 5.1 3.0 2.8 115.7 110.1 5.6 3.1

277、3.1 Depreciation andamortization expenses89.0 84.3 4.7 4.8 4.8 178.1 168.3 9.8 4.8 4.7 General andadministrativeexpenses84.8 82.9 1.9 4.5 4.7 177.2 173.3 3.9 4.7 4.8 Restructuring16.8 16.8 0.9 16.8 16.8 0.4 Total operatingexpenses1,649.9 1,523.7 126.2 88.4 86.7 3,283.6 3,128.6 155.0 87.8 86.8 Income

278、/(loss)fromequity investees(0.2)0.2(0.4)0.0 0.0(0.7)0.3(1.0)0.0 0.0 Operating income$217.0$233.8$(16.8)11.6%13.3%$454.1$475.3$(21.2)12.1%13.2%Store operating expenses as a%of company-operated stores revenue52.3%51.7%52.4%51.5%For the quarter ended March 30,2025 compared with the quarter ended March

279、31,2024RevenuesInternational total net revenues for the second quarter of fiscal 2025 increased$110 million,or 6%,primarily due to net new company-operated store growth of8%,or 779 stores,over the past 12 months($70 million)and higher product sales to,and royalty revenues from,our licensees($25 mill

280、ion),primarily due tothe opening of 497 net new licensed stores over the past 12 months.Also contributing to the increase in revenues was the incremental net revenue from theconversion of 113 licensed36Table of Contentsstores to company-operated stores($22 million)following the acquisition of 23.5 D

281、egrees Topco Limited,a U.K.licensed business partner,during the firstquarter of fiscal 2025,in addition to a 2%increase in comparable stores sales($21 million),driven by a 3%increase in comparable transactions,partially offsetby a 1%decrease in average ticket.These increases were partially offset by

282、 unfavorable foreign currency translation impacts($39 million).Operating MarginInternational operating income for the second quarter of fiscal 2025 decreased 7%to$217 million,compared to$234 million in the second quarter of fiscal2024.Operating margin contracted 170 basis points to 11.6%,primarily d

283、ue to increased promotional activity(approximately 200 basis points)andrestructuring costs(approximately 90 basis points),partially offset by leverage(approximately 170 basis points).For the two quarters ended March 30,2025 compared with the two quarters ended March 31,2024RevenuesInternational tota

284、l net revenues for the first two quarters of fiscal 2025 increased$135 million,or 4%,primarily due to net new company-operated store growthof 8%,or 779 stores,over the past 12 months($142 million),and the incremental net revenue from the conversion of 113 licensed stores to company-operatedstores($4

285、1 million)following the acquisition of 23.5 Degrees Topco Limited during the first quarter of fiscal 2025.Also contributing to the increase inrevenues were higher product sales to,and royalty revenues from,our licensees($22 million),primarily due to the opening of 497 net new licensed stores overthe

286、 past 12 months.These increases were partially offset by unfavorable foreign currency translation impacts($55 million),as well as a 1%decrease incomparable store sales($27 million),driven by a 2%decrease in average ticket,partially offset by a 1%increase in comparable transactions.Operating MarginIn

287、ternational operating income for the first two quarters of fiscal 2025 decreased 4%to$454 million,compared to$475 million in the first two quarters offiscal 2024.Operating margin contracted 110 basis points to 12.1%,primarily due to increased promotional activity(approximately 190 basis points),part

288、iallyoffset by leverage(approximately 80 basis points).Channel Development Quarter EndedTwo Quarters Ended Mar 30,2025Mar 31,2024$ChangeMar 30,2025Mar 31,2024Mar 30,2025Mar 31,2024$ChangeMar 30,2025Mar 31,2024As a%of ChannelDevelopmentTotal Net RevenuesAs a%of ChannelDevelopmentTotal Net RevenuesNet

289、 revenues$409.0$418.2$(9.2)$845.3$866.2$(20.9)Product anddistribution costs257.7 252.6 5.1 63.0%60.4%517.5 531.5(14.0)61.2%61.4%Other operatingexpenses15.0 15.2(0.2)3.7 3.6 28.4 28.0 0.4 3.4 3.2 Depreciation andamortization expenses0.0 0.0 0.0 0.0 0.0 General andadministrativeexpenses1.2 1.9(0.7)0.3

290、 0.5 3.1 4.2(1.1)0.4 0.5 Restructuring0.9 0.9 0.2 0.9 0.9 0.1 Total operatingexpenses274.8 269.7 5.1 67.2 64.5 549.9 563.7(13.8)65.1 65.1 Income from equityinvestees59.3 67.8(8.5)14.5 16.2 106.2 123.5(17.3)12.6 14.3 Operatingincome$193.5$216.3$(22.8)47.3%51.7%$401.6$426.0$(24.4)47.5%49.2%For the qua

291、rter ended March 30,2025 compared with the quarter ended March 31,202437Table of ContentsRevenuesChannel Development total net revenues for the second quarter of fiscal 2025 decreased$9 million,or 2%,primarily due to a decline in revenue in the GlobalCoffee Alliance($11 million),partially offset by

292、higher revenue in our global ready-to-drink business($5 million).Operating MarginChannel Development operating income for the second quarter of fiscal 2025 decreased 11%to$194 million,compared to$216 million in the second quarterof fiscal 2024.Operating margin contracted 440 basis points to 47.3%,pr

293、imarily driven by higher product costs related to the Global Coffee Alliance(approximately 390 basis points)and a decline in our North American Coffee Partnership joint venture income(approximately 170 basis points),partiallyoffset by mix shift(approximately 160 basis points).For the two quarters en

294、ded March 30,2025 compared with the two quarters ended March 31,2024RevenuesChannel Development total net revenues for the first two quarters of fiscal 2025 decreased$21 million,or 2%,primarily due to a decline in revenue in theGlobal Coffee Alliance($18 million)and decreased ingredient sales to our

295、 North American Coffee Partnership joint venture($10 million),partially offset byhigher revenue in our global ready-to-drink business($12 million).Operating MarginChannel Development operating income for the first two quarters of fiscal 2025 decreased 6%to$402 million,compared to$426 million in the

296、first twoquarters of fiscal 2024.Operating margin contracted 170 basis points to 47.5%,primarily driven by a decline in our North American Coffee Partnership jointventure income.Corporate and Other Quarter EndedTwo Quarters EndedMar 30,2025Mar 31,2024$Change%ChangeMar 30,2025Mar 31,2024$Change%Chang

297、eNet revenues:Other$12.8$7.5$5.3 70.7%$31.1$17.8$13.3 74.7%Total net revenues12.8 7.5 5.3 70.7 31.1 17.8 13.3 74.7 Product and distribution costs13.0 8.6 4.4 51.2 32.4 19.7 12.7 64.5 Other operating expenses0.0 0.5(0.5)nm0.2 0.6(0.4)(66.7)Depreciation and amortizationexpenses30.7 30.5 0.2 0.7 60.0 6

298、1.4(1.4)(2.3)General and administrative expenses449.7 467.4(17.7)(3.8)923.8 922.2 1.6 0.2 Restructuring77.2 77.2 nm77.2 77.2 nmTotal operating expenses570.6 507.0 63.6 12.5 1,093.6 1,003.9 89.7 8.9 Operating loss$(557.8)$(499.5)$(58.3)11.7%$(1,062.5)$(986.1)$(76.4)7.7%Corporate and Other primarily c

299、onsists of our unallocated corporate expenses.Unallocated corporate expenses include corporate administrative functions thatsupport the operating segments but are not specifically attributable to or managed by any segment and are not included in the reported financial results of theoperating segment

300、s.For the quarter ended March 30,2025 compared with the quarter ended March 31,2024Corporate and Other operating loss increased 12%to$558 million for the second quarter of fiscal 2025 compared to$500 million for the second quarter offiscal 2024,largely due to costs associated with restructuring our

301、support organization,primarily severance costs,in support of our“Back to Starbucks”strategy.For the two quarters ended March 30,2025 compared with the two quarters ended March 31,2024Corporate and Other operating loss increased 8%to$1.1 billion for the first two quarters of fiscal 2025 compared to$9

302、86 million for the first two quarters offiscal 2024,largely due to costs associated with restructuring our support organization,primarily severance costs,in support of our“Back to Starbucks”strategy.38Table of ContentsQuarterly Store DataOur store data for the periods presented is as follows:Net sto

303、res opened/(closed)and transferred during the period Quarter EndedTwo Quarters EndedStores open as ofMar 30,2025Mar 31,2024Mar 30,2025Mar 31,2024Mar 30,2025Mar 31,2024North AmericaCompany-operated stores89 112 170 199 11,331 10,827 Licensed stores1 22 33 56 7,296 7,238 Total North America90 134 203

304、255 18,627 18,065 InternationalCompany-operated stores91 132 317 318 10,174 9,282 Licensed stores32 98 70 340 11,988 11,604 Total International123 230 387 658 22,162 20,886 Total Company213 364 590 913 40,789 38,951 Net stores opened/(closed)and transferred during the period,for the two quarters end

305、ed March 30,2025,includes the conversion of 113 licensed stores tocompany-operated stores following the acquisition of 23.5 Degrees Topco Limited during the first quarter of fiscal 2025.Financial Condition,Liquidity,and Capital ResourcesCash and Investment OverviewOur cash and investments were$3.2 b

306、illion as of March 30,2025 and$3.8 billion as of September 29,2024.We actively manage our cash and investments inorder to internally fund operating needs,make scheduled interest and principal payments on our borrowings,fund acquisitions,and return cash to shareholdersthrough common stock cash divide

307、nd payments and share repurchases.Our investment portfolio primarily includes highly liquid available-for-sale securities,including corporate debt securities and government treasury securities(domestic and foreign),as well as principal-protected structured deposits.As ofMarch 30,2025,approximately$2

308、.0 billion of cash and short-term investments were held in foreign subsidiaries.Borrowing CapacityRevolving Credit FacilityOur$3.0 billion unsecured five-year revolving credit facility(the“2021 credit facility”),of which$150.0 million may be used for issuances of letters of credit,is currently set t

309、o mature on September 16,2026.The 2021 credit facility is available for working capital,capital expenditures,and other corporate purposes,including acquisitions and share repurchases.We have the option,subject to negotiation and agreement with the related banks,to increase the maximumcommitment amou

310、nt by an additional$1.0 billion.Borrowings under the 2021 credit facility,which was most recently amended in April 2023,will bear interest at a variable rate based on Term SOFR,and,forU.S.dollar-denominated loans under certain circumstances,a Base Rate(as defined in the 2021 credit facility),in each

311、 case plus an applicable margin.Theapplicable margin is based on the Companys long-term credit ratings assigned by the Moodys and Standard&Poors rating agencies.The“Base Rate”is thehighest of(i)the Federal Funds Rate(as defined in the 2021 credit facility)plus 0.500%,(ii)Bank of Americas prime rate,

312、and(iii)Term SOFR plus 1.000%.Term SOFR means the forward-looking SOFR term rate administrated by the Chicago Mercantile Exchange plus a SOFR Adjustment of 0.100%.The 2021 credit facility contains provisions requiring us to maintain compliance with certain covenants,including a minimum fixed charge

313、coverage ratio,which measures our ability to cover financing expenses.As of March 30,2025,we were in compliance with all applicable covenants.No amounts wereoutstanding under our 2021 credit facility as of March 30,2025 or September 29,2024.Commercial PaperUnder our commercial paper program,we may i

314、ssue unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time of$3.0billion,with individual maturities that may vary but not exceed 397 days from the date of issue.Amounts outstanding under the commercial paper program arerequired to be backstopped by available commi

315、tments under our 2021 credit facility.The proceeds from borrowings under our commercial paper program maybe used for working capital needs,capital expenditures,and other corporate purposes,including,but not limited to,business expansion,payment of cash(1)(1)(1)39Table of Contentsdividends on our com

316、mon stock,and share repurchases.We had no borrowings outstanding under our commercial paper program as of March 30,2025 andSeptember 29,2024.Our total available contractual borrowing capacity for general corporate purposes was$3.0 billion as of the end of our second quarter offiscal 2025.Credit Faci

317、lities in JapanAdditionally,we hold the following Japanese yen-denominated credit facilities that are available for working capital needs and capital expenditures within ourJapanese market.A 5.0 billion,or$33.1 million,credit facility is currently set to mature on December 30,2025.Borrowings under t

318、his credit facility are subject toterms defined within the facility and will bear interest at a variable rate based on TIBOR plus an applicable margin of 0.400%.A 10.0 billion,or$66.2 million,credit facility is currently set to mature on March 27,2026.Borrowings under this credit facility are subjec

319、t to termsdefined within the facility and will bear interest at a variable rate based on TIBOR plus an applicable margin of 0.300%.As of March 30,2025 and September 29,2024,we had no borrowings outstanding under these credit facilities.See Note 8,Debt,to the consolidated financial statements include

320、d in Item 1 of Part I of this 10-Q for details of the components of our long-term debt.Our ability to incur new liens and conduct sale and leaseback transactions on certain material properties is subject to compliance with terms of the indenturesunder which the long-term notes were issued.As of Marc

321、h 30,2025,we were in compliance with all applicable covenants.Use of CashWe expect to use our available cash and investments,including,but not limited to,additional potential future borrowings under the credit facilities,commercialpaper program,and the issuance of debt to support and invest in our c

322、ore businesses,including investing in new ways to serve our customers and supportingour store partners,repaying maturing debts,returning cash to shareholders through common stock cash dividend payments and discretionary share repurchases,and investing in new business opportunities related to our cor

323、e and developing businesses.Furthermore,we may use our available cash resources to makeproportionate capital contributions to our investees.We may also seek strategic acquisitions to leverage existing capabilities and further build our business.Acquisitions may include increasing our ownership inter

324、ests in our investees.Any decisions to increase such ownership interests will be driven by valuationand fit with our ownership strategy.We believe that net future cash flows generated from operations and existing cash and investments both domestically and internationally,combined with ourability to

325、leverage our balance sheet through the issuance of debt,will be sufficient to finance capital requirements for our core businesses as well asshareholder distributions for at least the next 12 months.We are currently not aware of any trends or demands,commitments,events,or uncertainties that willresu

326、lt in,or that are reasonably likely to result in,our liquidity increasing or decreasing in any material way that will impact our capital needs during or beyondthe next 12 months.We have borrowed funds and continue to believe we have the ability to do so at reasonable interest rates;however,additiona

327、l borrowingswould result in increased interest expense in the future.In this regard,we may incur additional debt,within targeted levels,as part of our plans to fund ourcapital programs,including cash returns to shareholders through future dividends and discretionary share repurchases,refinancing deb

328、t maturities,as well asinvesting in new business opportunities.If necessary,we may pursue additional sources of financing,including both short-term and long-term borrowings anddebt issuances.We regularly review our cash positions and our determination of partial indefinite reinvestment of foreign ea

329、rnings.In the event we determine that all oranother portion of such foreign earnings are no longer indefinitely reinvested,we may be subject to additional foreign withholding taxes,which could bematerial.Any foreign earnings that are not indefinitely reinvested may be repatriated at managements disc

330、retion.During the second quarter of fiscal 2025,our Board of Directors approved a quarterly cash dividend to shareholders of$0.61 per share to be paid on May 30,2025 to shareholders of record as of the close of business on May 16,2025.During the two quarters ended March 30,2025,we made no common sto

331、ck share repurchases.As of March 30,2025,29.8 million shares remained availablefor repurchase under current authorizations.Other than normal operating expenses,cash requirements for the remainder of fiscal 2025 are expected to consist primarily of capital expenditures forinvestments in our new and e

332、xisting stores,our supply chain,and corporate facilities.Total capital expenditures for fiscal 2025 are expected to be reasonablyconsistent with fiscal 2024.40Table of ContentsIn the MD&A included in the 10-K,we disclosed that we had$35.6 billion of current and long-term material cash requirements a

333、s of September 29,2024.There have been no material changes to our material cash requirements during the period covered by this 10-Q outside of the normal course of our business.Cash FlowsNet cash provided by operating activities was$2.4 billion for the first two quarters of fiscal 2025,compared to$2.9 billion for the same period in fiscal 2024.The change was primarily due to a decrease in net earn