Analysis of Reportable Segments
Starbucks Corp. operates in 3 segments: North America; International; and Channel Development.
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- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
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Segment Profit Margin
Starbucks Corp., profit margin by reportable segment
| Sep 28, 2025 | Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | |
|---|---|---|---|---|---|---|
| North America | ||||||
| International | ||||||
| Channel Development |
Based on: 10-K (reporting date: 2025-09-28), 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27).
- North America Segment Profit Margin
- The profit margin for the North America segment exhibited notable fluctuations over the observed periods. Starting at 11.06% in 2020, there was a substantial increase to 20.83% in 2021. Following this peak, the margin experienced a slight decline to 19.2% in 2022, then a marginal increase to 20.68% in 2023. Subsequently, the margin decreased to 19.83% in 2024 and sharply dropped to 11.53% in 2025. Overall, the segment showed initial improvement, stability around 20%, and then a significant erosion by the final period.
- International Segment Profit Margin
- The International segment profit margin demonstrated an upward trend at the beginning, rising from 7.09% in 2020 to 18.00% in 2021. It then declined to 12.01% in 2022 before partially recovering to 16.44% in 2023. Subsequent periods exhibited a downward trend, with margins decreasing to 14.25% in 2024 and further to 12.15% in 2025. The data indicates volatility with initial growth followed by a fluctuating decline in profitability.
- Channel Development Segment Profit Margin
- The Channel Development segment consistently maintained the highest profit margins among the three segments throughout the periods. The margin grew from 35.7% in 2020 to a peak of 51.09% in 2023, with minor fluctuations including a slight dip to 44.33% in 2022. After peaking, the margin remained strong with marginal decreases to 52.32% in 2024 and 47.29% in 2025. This segment demonstrates strong and relatively stable profitability with high margins sustained over time.
Segment Profit Margin: North America
Starbucks Corp.; North America; segment profit margin calculation
| Sep 28, 2025 | Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income (loss) | ||||||
| Total net revenues | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2025-09-28), 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27).
1 2025 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Total net revenues
= 100 × ÷ =
The analysis of the annual North America reportable segment reveals several notable financial trends over the evaluated periods.
- Operating Income (Loss)
- Operating income showed a significant increase from 1,801,700 thousand US dollars in 2020 to a peak of 5,495,700 thousand US dollars in 2023. After reaching this highest point, operating income decreased noticeably to 3,156,700 thousand US dollars by 2025. This pattern suggests a period of substantial growth followed by a considerable decline in profitability in the most recent year.
- Total Net Revenues
- Total net revenues consistently increased throughout the entire period, growing from 16,296,200 thousand US dollars in 2020 to 27,373,100 thousand US dollars in 2025. This steady upward trend indicates ongoing growth in sales or service income within the North America segment despite fluctuations in profitability.
- Segment Profit Margin
- The segment profit margin mirrored operating income trends, starting at 11.06% in 2020, rising sharply to approximately 20.83% in 2021, and maintaining relatively high levels around 20% in the following years, before falling substantially to 11.53% in 2025. The margin trend highlights periods of enhanced operational efficiency or pricing power, followed by a reduction that aligns with the decline in operating income.
Overall, while revenue growth remained robust and consistent, the operating income and profit margin indicated a peak in segment profitability around 2023, followed by a notable decrease in 2025. This divergence between revenue growth and profitability decline in the latest year may warrant further investigation into cost structures, market conditions, or competitive dynamics affecting the North America segment.
Segment Profit Margin: International
Starbucks Corp.; International; segment profit margin calculation
| Sep 28, 2025 | Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income (loss) | ||||||
| Total net revenues | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2025-09-28), 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27).
1 2025 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Total net revenues
= 100 × ÷ =
The "International" reportable segment data reveals several significant trends in financial performance over the analyzed periods.
- Operating Income (Loss)
- The operating income exhibited notable fluctuations. It started at $370.6 million in 2020 and increased substantially to $1.246 billion in 2021, reflecting a strong recovery or expansion. However, in 2022, there was a decline to $833.2 million, followed by a rebound to $1.231 billion in 2023. In the most recent two years, 2024 and 2025, operating income decreased to $1.046 billion and further to $950 million respectively, indicating some challenges or increased costs affecting profitability towards the end of the timeline.
- Total Net Revenues
- The total net revenues demonstrated an overall upward trend with some variability. Starting from $5.23 billion in 2020, revenues surged to $6.92 billion in 2021 and saw a slight increase to approximately $6.94 billion in 2022. Revenues continued to grow, reaching $7.49 billion in 2023. However, a slight dip occurred in 2024 to $7.34 billion, followed by a renewed rise to $7.82 billion in 2025. This pattern indicates steady market growth with minor fluctuations likely due to external market conditions or operational factors.
- Segment Profit Margin
- The segment profit margin showed considerable variation during the period. It began at a modest 7.09% in 2020, surged to a peak of 18% in 2021, then declined to 12.01% in 2022. The margin improved again to 16.44% in 2023 before tapering off to 14.25% and 12.15% in the subsequent two years. These margin changes reflect the operating income trend but also suggest that profitability pressures increased after 2023, possibly due to rising costs, pricing pressures, or changes in product mix.
In summary, the segment experienced strong revenue growth and profitability gains early in the period, with intermittent periods of recovery and decline in operating income and margins. The lower operating income and profit margins in the last two years indicate potential margin compression or increased cost challenges despite overall revenue growth. This could warrant further strategic review to sustain profitability while continuing to expand revenue.
Segment Profit Margin: Channel Development
Starbucks Corp.; Channel Development; segment profit margin calculation
| Sep 28, 2025 | Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income (loss) | ||||||
| Total net revenues | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2025-09-28), 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27).
1 2025 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Total net revenues
= 100 × ÷ =
- Operating Income (Loss)
- Over the observed periods, there was a notable fluctuation in operating income. Starting at $687.2 million, operating income increased substantially in the subsequent years, reaching a peak of $967.6 million. However, after this peak, a decline ensued, with figures falling to $885.1 million by the final period. This pattern indicates an overall growth in profitability followed by a moderate reduction in recent years.
- Total Net Revenues
- Total net revenues displayed variability across the periods. Initially, revenues decreased from $1.925 billion to approximately $1.594 billion, indicating a contraction in this segment. Following this decline, there was a recovery phase, with revenues climbing back to $1.893 billion. Subsequently, revenues experienced another decline to $1.770 billion but rose again to $1.872 billion by the last period. The data reflects a cyclical pattern of revenue fluctuations with no consistent upward or downward trend.
- Segment Profit Margin
- The segment profit margin demonstrated substantial improvement across the timeline. Starting at 35.7%, the margin increased sharply to nearly 50% before experiencing a slight decline. It then peaked at above 52%, maintaining a relatively high level before declining slightly to 47.29% in the final period. The overall trend reveals enhanced operational efficiency or cost control measures, contributing to higher profitability margins despite variability in revenues and operating income.
- Overall Insights
- The data portrays a segment undergoing dynamic changes with periods of revenue contraction and expansion. EBITDA-related metrics show overall improved profitability efficiency as evidenced by rising profit margins even amidst fluctuating revenues. The peak in operating income correlates with the highest profit margin, suggesting effective cost management during periods of peak revenue performance. The slight declines in later periods warrant further investigation into market conditions or operational challenges to sustain growth momentum.
Total net revenues
Starbucks Corp., total net revenues by reportable segment
US$ in thousands
| Sep 28, 2025 | Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | |
|---|---|---|---|---|---|---|
| North America | ||||||
| International | ||||||
| Channel Development | ||||||
| Corporate and Other | ||||||
| Total |
Based on: 10-K (reporting date: 2025-09-28), 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27).
The total net revenues across all reportable segments demonstrated a consistent upward trajectory over the observed periods, indicating overall growth in the company's revenue base.
- North America Segment
- This segment showed a steady increase in net revenues year over year, rising from approximately $16.3 billion to nearly $27.4 billion. The growth is consistent without any observed declines, reflecting a strong and expanding market presence in this region.
- International Segment
- The international segment also exhibited growth, although at a slower pace and with minor fluctuations. Revenues increased from about $5.2 billion to approximately $7.8 billion. Notably, there was a slight decline between the years ending October 1, 2023, and September 29, 2024, before recovering in the subsequent year. This suggests some variability in international markets but an overall positive trend.
- Channel Development Segment
- Revenues in the channel development segment displayed minor fluctuations throughout the periods, starting around $1.9 billion and showing slight decreases and increases, ultimately settling near $1.87 billion. The segment experienced its lowest value in the year ending September 29, 2024, hinting at some volatility or market challenges in this distribution channel.
- Corporate and Other Segment
- This segment's revenues were the smallest and exhibited variability with no clear upward or downward trend. Values ranged from $66.2 million up to $119.7 million, with a notable dip in the year ending October 1, 2023. The fluctuations might be related to varying corporate activities or other non-operational revenues.
- Total Revenues
- Total net revenues increased from approximately $23.5 billion to $37.2 billion across the six-year span, underscoring strong overall growth. The annual increases demonstrate consistent revenue expansion, although the growth rate appears to moderate slightly in the most recent years, suggesting a maturing revenue base or increased market challenges.
Operating income (loss)
Starbucks Corp., operating income (loss) by reportable segment
US$ in thousands
| Sep 28, 2025 | Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | |
|---|---|---|---|---|---|---|
| North America | ||||||
| International | ||||||
| Channel Development | ||||||
| Corporate and Other | ||||||
| Total |
Based on: 10-K (reporting date: 2025-09-28), 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27).
The analysis of the annual reportable segment operating income for the periods under review reveals several notable trends and fluctuations across different segments.
- North America
- The North America segment shows an initial strong growth from 1,801,700 thousand USD in 2020 to a peak of 5,495,700 thousand USD in 2023. However, this is followed by a decline to 3,156,700 thousand USD in 2025. This indicates a significant recovery and expansion phase up to 2023, succeeded by a notable contraction in the last two periods.
- International
- The International segment displays considerable volatility. It increases sharply from 370,600 thousand USD in 2020 to 1,245,700 thousand USD in 2021 but then declines to 833,200 thousand USD in 2022. This is followed by a moderate recovery reaching 1,230,900 thousand USD in 2023 before experiencing another decrease to 950,000 thousand USD in 2025. The pattern suggests exposure to fluctuations possibly due to varying economic or operational conditions in international markets.
- Channel Development
- The Channel Development segment presents steady growth trends from 687,200 thousand USD in 2020 to 967,600 thousand USD in 2023, subsequently experiencing a slight decline to 885,100 thousand USD in 2025. Overall, this segment maintains relatively stable and positive performance across the period.
- Corporate and Other
- The Corporate and Other category consistently records operating losses throughout the periods, with losses expanding from -1,297,800 thousand USD in 2020 to -2,055,200 thousand USD in 2025. The increasing magnitude of losses indicates rising costs or negative contributions within this segment over time.
- Total Operating Income
- Total operating income follows a pattern similar to the North America segment, rising sharply from 1,561,700 thousand USD in 2020 to a high of 5,870,800 thousand USD in 2023, and then declining significantly to 2,936,600 thousand USD in 2025. The aggregate trend reflects the influence of the key segments, particularly North America and Corporate and Other.
In summary, the data indicates strong growth momentum leading up to 2023, particularly driven by the North America segment, with intermittent variability in International operations. Channel Development shows steady positive contributions, whereas Corporate and Other consistently detracts from overall profitability with increasing losses. The decline in total operating income in the last two reported years suggests challenges affecting segment performance and overall earnings capacity.