SBUX · STARBUCKS CORP
10-Q filed 2026-04-28 period 2026-03-29
78 Stable
confidence High · source filing on SEC.gov ↗
- Starbucks entered into a joint venture with Boyu Capital, selling a 60% stake in its China retail operations for $3.1 billion, transitioning 7,991 stores to a licensed model.
- Consolidated net revenues grew 8.8% to $9.53 billion in Q2 FY26, driven by a 6.2% increase in global comparable store sales.
- Operating margin expanded by 180 basis points to 8.7%, aided by ceased depreciation on China assets held for sale, despite ongoing labor investments.
Filing Health Score pillars
Profitability 25%
82
Net revenues grew 8.8% to $9.53 billion, and operating margin expanded by 180 bps to 8.7% due to sales leverage and ceased depreciation on China assets held for sale (MD&A - Introduction and Overview).
Balance sheet 20%
65
Cash of $1.53 billion is significantly lower than total debt of over $15 billion, and the current ratio is below 1.0 at 0.92, though interest coverage remains solid at 6.0x (Consolidated Balance Sheets, Consolidated Statements of Earnings).
Cash generation 20%
80
Operating cash flow of $1.96 billion for the first two quarters easily exceeds net earnings of $804 million, and free cash flow reached $1.37 billion with reduced capex intensity of 3.1% (Consolidated Statements of Cash Flows).
Risk flags 20%
85
No material changes to risk factors were reported, and there are no going-concern or control weakness disclosures, though the China joint venture transition created a significant tax expense impact (Item 1A, Note 1).
Mgmt signal 15%
75
Management expresses confidence in the 'Back to Starbucks' strategy and the strategic China joint venture with Boyu Capital, though North American margins contracted due to heavy labor investments (MD&A - Introduction and Overview).
Key metrics (Quarter Ended Mar 29, 2026)
revenue: $9,531.5 million
cash and equivalents: $1,532.0 million
total debt: $15,081.9 million
shares outstanding: 1,139.5 million
net income: $510.9 million
period: Quarter Ended Mar 29, 2026
operating cash flow: $1,962.2 million (Two Quarters Ended)
Gemma triage notes (pre-analysis, second opinion)
None for this filing.Automated research summaries derived from SEC filings. Not investment advice.