Starbucks Corporation (SBUX) Stock Analysis

Starbucks operated 40,990 coffeehouses across 89 markets at September 28, 2025, including 10,047 U.S. company-operated stores, 8,009 company-operated stores in China, and 19,476 licensed stores worldwide. North America accounted for approximately 74% of total net revenues in fiscal 2025, with company-operated stores contributing 83% of total net revenues. The company employed approximately 381,000 people, including about 223,000 in the U.S. In the fourth quarter of fiscal 2025, Starbucks announced a restructuring plan involving coffeehouse closures — 627 stores were closed in Q4 2025 alone — as part of its 'Back to Starbucks' strategy.

Starbucks earns revenue through three segments: North America (74% of revenues, inclusive of the U.S. and Canada), International (21%, inclusive of China, Japan, Asia Pacific, Europe, Middle East, Africa, Latin America, and Caribbean), and Channel Development (5%, branded packaged goods and ready-to-drink beverages sold outside stores). Under company-operated stores, beverages represented 73% of retail sales mix in fiscal 2025, followed by food at 23%. Licensed stores generate lower gross margins but higher operating margins, with licensees paying royalties and purchasing branded products. Channel Development operates substantially under the Global Coffee Alliance with Nestlé S.A., which holds global rights to distribute certain Starbucks branded packaged goods; ready-to-drink products operate under collaborative relationships with PepsiCo and Nestlé. The Starbucks Rewards loyalty program and Starbucks Card are central to driving repeat visits and customer retention across North America, China, and Japan.