SBUX · STARBUCKS CORP
10-Q filed 2026-07-29 period 2026-06-28
80 Strong
confidence high · source filing on SEC.gov ↗
- Completed the divestiture of a 60% stake in Starbucks China retail operations to Boyu Capital for $3.1 billion in proceeds, transitioning the market to a licensed joint venture model.
- Utilized transaction proceeds to reduce long-term debt by approximately $2.8 billion compared to fiscal year-end 2025, strengthening the balance sheet.
- Incurred $302.6 million in restructuring and impairment charges during Q3 FY26, primarily driven by asset impairments of Starbucks Reserve and Roastery locations.
vs. prior filing (10-Q filed 2026-04-28) — ⚠ ALERT
FHS 78 → 80 (+2) · Stable -> Strong
Profitability -2Balance sheet +7Cash generation +5Risk flags -5Mgmt signal +9
Filing Health Score pillars
Profitability 25%
80
Net revenues decreased 1.4% in Q3 FY26 due to the China JV conversion, but global comparable store sales grew 7.9% and consolidated operating margin expanded 60 basis points to 10.5% (MD&A - Introduction and Overview).
Balance sheet 20%
72
Total debt decreased to $13.28 billion from $16.07 billion, aided by China transaction proceeds, though the current ratio remains below 1.0 at 0.76 and the company operates in a net deficit position (Consolidated Balance Sheets).
Cash generation 20%
85
Cash flow from operations of $3.60 billion easily exceeded net earnings of $1.85 billion for the first three quarters, and capex intensity decreased significantly to $888 million from $1.85 billion in the prior year period (Consolidated Statements of Cash Flows).
Risk flags 20%
80
There are no going-concern issues or material changes to risk factors, but restructuring and impairment charges rose sharply to $302.6 million in Q3 FY26 due to Starbucks Reserve and Roastery impairments (Note 17).
Mgmt signal 15%
84
Management expressed confidence in the 'Back to Starbucks' strategy and the strategic conversion of China operations to a licensed joint venture model, which is expected to drive higher operating margins (MD&A - Introduction and Overview).
Key metrics (Three Quarters Ended Jun 28, 2026)
period: Three Quarters Ended Jun 28, 2026
total debt: $13,278.6 million
cash and equivalents: $3,449.8 million
shares outstanding: 1,139.8 million
revenue: $28,769.3 million
net income: $1,849.6 million
operating cash flow: $3,604.1 million
Gemma triage notes (pre-analysis, second opinion)
None for this filing.Automated research summaries derived from SEC filings. Not investment advice.