Analysis of Reportable Segments
Starbucks Corp. operates in 3 segments: North America; International; and Channel Development.
Segment Profit Margin
Starbucks Corp., profit margin by reportable segment
| Sep 27, 2026 | Sep 28, 2025 | Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | |
|---|---|---|---|---|---|---|
| North America | 11.95% | 11.53% | 19.83% | 20.68% | 19.20% | 20.83% |
| International | 17.66% | 12.15% | 14.25% | 16.44% | 12.01% | 18.00% |
| Channel Development | 46.77% | 47.29% | 52.32% | 51.09% | 44.33% | 49.52% |
Based on: 10-K (reporting date: 2026-09-27), 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).
The analysis of segment profit margins reveals divergent performance trends across the three reportable segments. While the Channel Development segment maintains a consistently high margin profile, the North America and International segments exhibit greater volatility and significant fluctuations in profitability over the observed period.
- North America Segment
- The profit margin for North America remained relatively stable between 2021 and 2024, fluctuating within a narrow corridor between 19.20% and 20.83%. A sharp contraction occurred in 2025, with the margin falling to 11.53%, representing a significant deviation from previous years. A slight recovery to 11.95% is noted in 2026, though profitability remains substantially lower than the 2021-2024 baseline.
- International Segment
- The International segment is characterized by high volatility. After a decline from 18.00% in 2021 to 12.01% in 2022, the margin recovered to 16.44% in 2023. This was followed by a multi-year downward trend, reaching a low of 12.15% in 2025, before experiencing a robust rebound to 17.66% in 2026.
- Channel Development Segment
- This segment consistently demonstrates the highest profitability of all reportable segments. Margins peaked at 52.32% in 2024 after recovering from a low of 44.33% in 2022. Although a slight downward trend is observed in 2025 and 2026, with the margin settling at 46.77%, the segment continues to operate with a profit margin more than double that of the retail-focused segments.
Overall, the data indicates a shift in the profitability mix, where the stability and high margins of Channel Development provide a buffer against the increasing volatility and margin compression observed in the North American and International markets.
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Segment Profit Margin: North America
Starbucks Corp.; North America; segment profit margin calculation
| Sep 27, 2026 | Sep 28, 2025 | Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income (loss) | 3,454,200) | 3,156,700) | 5,355,300) | 5,495,700) | 4,486,500) | 4,259,300) |
| Total net revenues | 28,897,800) | 27,373,100) | 27,009,500) | 26,569,600) | 23,370,800) | 20,447,900) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 11.95% | 11.53% | 19.83% | 20.68% | 19.20% | 20.83% |
Based on: 10-K (reporting date: 2026-09-27), 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).
1 2026 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Total net revenues
= 100 × 3,454,200 ÷ 28,897,800 = 11.95%
The North American segment exhibits a consistent growth trajectory in total net revenues over the analyzed period, increasing from 20.45 billion US dollars in 2021 to 28.90 billion US dollars by 2026. However, this top-line growth is not mirrored by operating income, which shows significant volatility and a substantial contraction in the latter years of the period.
- Revenue Growth Patterns
- Total net revenues experienced a steady upward trend, with the most rapid expansion occurring between 2021 and 2023. Growth continued at a more moderated pace through 2026, indicating a sustained increase in market scale despite shifting profitability dynamics.
- Operating Income Volatility
- Operating income peaked in 2023 at 5.50 billion US dollars. A gradual decline began in 2024, followed by a sharp contraction in 2025 to 3.16 billion US dollars. While a slight recovery to 3.45 billion US dollars is observed in 2026, the operating income remains significantly below the 2023 peak.
- Segment Profit Margin Compression
- The segment profit margin remained relatively stable between 19.20% and 20.83% from 2021 through 2024. A severe margin compression occurred in 2025, with the ratio falling to 11.53%. The margin showed a marginal improvement to 11.95% in 2026, but it failed to return to the historical levels established in the previous four years.
- Operational Efficiency Correlation
- The divergence between rising revenues and falling profit margins starting in 2025 suggests an escalation in operating expenses that outweighs revenue gains. This decoupling indicates a decrease in operational efficiency or an increase in the cost of goods and services sold within the North American market during the final two years of the period.
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Segment Profit Margin: International
Starbucks Corp.; International; segment profit margin calculation
| Sep 27, 2026 | Sep 28, 2025 | Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income (loss) | 1,191,100) | 950,000) | 1,045,700) | 1,230,900) | 833,200) | 1,245,700) |
| Total net revenues | 6,744,400) | 7,819,900) | 7,338,900) | 7,487,600) | 6,940,100) | 6,921,600) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 17.66% | 12.15% | 14.25% | 16.44% | 12.01% | 18.00% |
Based on: 10-K (reporting date: 2026-09-27), 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).
1 2026 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Total net revenues
= 100 × 1,191,100 ÷ 6,744,400 = 17.66%
The international segment exhibits significant volatility in both profitability and revenue generation over the analyzed six-year period. While revenue generally trended upward until 2025, operating income and profit margins experienced frequent fluctuations, suggesting a period of operational instability or shifting market conditions.
- Revenue Trajectory
- Total net revenues demonstrated a gradual increase from 6.92 billion in 2021 to a peak of 7.82 billion in 2025. However, this growth trend reversed sharply in 2026, with revenues contracting to 6.74 billion, the lowest level recorded within the period.
- Operating Income Performance
- Operating income lacked a consistent direction, characterized by alternating periods of growth and contraction. A notable decline occurred in 2022, dropping to 833.2 million, followed by a recovery in 2023 to 1.23 billion. A subsequent two-year decline followed, bottoming at 950 million in 2025 before rebounding to 1.19 billion in 2026.
- Segment Profit Margin Analysis
- The profit margin showed high variability, starting at 18.00% in 2021 and falling to 12.01% in 2022. Although a recovery to 16.44% was achieved in 2023, the margin compressed again over the next two years, reaching 12.15% in 2025. A significant margin expansion occurred in 2026, rising to 17.66%.
- Operational Efficiency Correlation
- A divergent trend is observed in 2026, where a substantial decrease in total net revenues coincided with an increase in both operating income and profit margin. This suggests a strategic shift toward higher-margin operations or a significant reduction in operating expenses, allowing for improved profitability despite a smaller revenue base.
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Segment Profit Margin: Channel Development
Starbucks Corp.; Channel Development; segment profit margin calculation
| Sep 27, 2026 | Sep 28, 2025 | Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income (loss) | 1,016,200) | 885,100) | 925,900) | 967,600) | 817,300) | 789,100) |
| Total net revenues | 2,172,700) | 1,871,700) | 1,769,800) | 1,893,800) | 1,843,600) | 1,593,600) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 46.77% | 47.29% | 52.32% | 51.09% | 44.33% | 49.52% |
Based on: 10-K (reporting date: 2026-09-27), 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).
1 2026 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Total net revenues
= 100 × 1,016,200 ÷ 2,172,700 = 46.77%
The Channel Development segment exhibits a general upward trajectory in both total net revenues and operating income over the analyzed period, despite intermittent volatility in profitability margins. While the segment achieved its highest absolute financial results in the final year of the period, the efficiency of converting revenue into operating income has fluctuated significantly.
- Revenue Performance
- Total net revenues grew from 1,593,600 thousand US$ in 2021 to 2,172,700 thousand US$ by 2026. A notable contraction occurred in 2024, where revenues dipped to 1,769,800 thousand US$ before rebounding strongly in the subsequent two years.
- Operating Income Trends
- Operating income followed a similar growth pattern, increasing from 789,100 thousand US$ in 2021 to a peak of 1,016,200 thousand US$ in 2026. Growth was characterized by a steady climb through 2023, followed by a two-year period of decline in 2024 and 2025, before recovering in 2026.
- Segment Profit Margin Analysis
- The profit margin displayed an inconsistent trend, peaking at 52.32% in 2024. Despite the peak in margin coinciding with a dip in total revenue, the subsequent years showed margin compression. By 2026, the margin declined to 46.77%, indicating that operating expenses grew at a faster rate than net revenues during the final expansion phase.
The divergence between the growth in total net revenues and the decline in profit margin during the final two years suggests a shift in the cost structure of the Channel Development segment. Although the segment is generating higher absolute income, the operational efficiency has decreased relative to the 2023-2024 peak.
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Total net revenues
Starbucks Corp., total net revenues by reportable segment
US$ in thousands
| Sep 27, 2026 | Sep 28, 2025 | Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | |
|---|---|---|---|---|---|---|
| North America | 28,897,800) | 27,373,100) | 27,009,500) | 26,569,600) | 23,370,800) | 20,447,900) |
| International | 6,744,400) | 7,819,900) | 7,338,900) | 7,487,600) | 6,940,100) | 6,921,600) |
| Channel Development | 2,172,700) | 1,871,700) | 1,769,800) | 1,893,800) | 1,843,600) | 1,593,600) |
| Corporate and Other | 95,700) | 119,700) | 58,000) | 24,600) | 95,800) | 97,500) |
| Total | 37,910,600) | 37,184,400) | 36,176,200) | 35,975,600) | 32,250,300) | 29,060,600) |
Based on: 10-K (reporting date: 2026-09-27), 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).
Total net revenues demonstrate a consistent upward trajectory over the analyzed period, increasing from US$ 29.06 billion in 2021 to US$ 37.91 billion in 2026. This growth is primarily underpinned by the performance of the North American segment, although significant volatility is observed in international markets.
- North American Segment Performance
- The North American region represents the largest revenue contributor and shows sustained growth throughout the period. Revenue increased from US$ 20.45 billion in 2021 to US$ 28.90 billion in 2026. A phase of rapid acceleration occurred between 2021 and 2023, followed by a period of stabilization between 2023 and 2025, before concluding with another increase in 2026.
- International Segment Volatility
- International revenues exhibited a non-linear trend. While figures rose from US$ 6.92 billion in 2021 to a peak of US$ 7.82 billion in 2025, a notable decline to US$ 6.74 billion was recorded in 2026. This final contraction resulted in revenues falling below the initial 2021 levels, indicating a reversal of previous gains in this segment.
- Channel Development and Other Streams
- Channel Development revenues grew from US$ 1.59 billion in 2021 to US$ 2.17 billion in 2026, despite a moderate contraction in 2024. Corporate and Other revenues remained immaterial to the overall revenue mix, fluctuating between a low of US$ 24.6 million in 2023 and a high of US$ 119.7 million in 2025.
- Aggregate Revenue Composition
- The overall revenue growth of approximately 30.4% over the six-year period is heavily skewed toward the North American market. The total revenue growth rate showed a slowing trend in the latter half of the period, as the contributions from the International segment failed to maintain a consistent growth path.
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Operating income (loss)
Starbucks Corp., operating income (loss) by reportable segment
US$ in thousands
| Sep 27, 2026 | Sep 28, 2025 | Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | |
|---|---|---|---|---|---|---|
| North America | 3,454,200) | 3,156,700) | 5,355,300) | 5,495,700) | 4,486,500) | 4,259,300) |
| International | 1,191,100) | 950,000) | 1,045,700) | 1,230,900) | 833,200) | 1,245,700) |
| Channel Development | 1,016,200) | 885,100) | 925,900) | 967,600) | 817,300) | 789,100) |
| Corporate and Other | (1,970,400) | (2,055,200) | (1,918,100) | (1,823,400) | (1,519,200) | (1,422,000) |
| Total | 3,691,100) | 2,936,600) | 5,408,800) | 5,870,800) | 4,617,800) | 4,872,100) |
Based on: 10-K (reporting date: 2026-09-27), 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).
Total operating income exhibits a volatile trajectory over the analyzed period, peaking in October 2023 at US$ 5,870.8 million before undergoing a significant contraction to US$ 2,936.6 million by September 2025. A partial recovery is observed in September 2026, with total operating income rising to US$ 3,691.1 million.
- North American Segment Performance
- As the primary driver of profitability, this segment showed strong growth through October 2023, reaching US$ 5,495.7 million. However, a substantial decline occurred by September 2025, where income dropped to US$ 3,156.7 million, representing the most significant contraction of any reportable segment before rebounding to US$ 3,454.2 million in 2026.
- International Segment Volatility
- Operating income in this segment is characterized by inconsistency. A notable decline was recorded in October 2022 at US$ 833.2 million, followed by a recovery to US$ 1,230.9 million in 2023. After another period of decline reaching US$ 950.0 million in 2025, the segment showed signs of recovery, ending the period at US$ 1,191.1 million.
- Channel Development Stability
- This segment displays the most stable income trend among the revenue-generating segments. Income rose from US$ 789.1 million in 2021 to a peak of US$ 967.6 million in 2023, and despite a slight dip in subsequent years, it maintained a steady upward trajectory to conclude at US$ 1,016.2 million in 2026.
- Corporate and Other Impact
- A persistent and expanding drag on total operating income is observed in the Corporate and Other category. Operating losses grew steadily from US$ -1,422.0 million in 2021 to a peak loss of US$ -2,055.2 million in 2025, before slightly improving to US$ -1,970.4 million in 2026.
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