SBUX · 10-K · 2026A · Full report
Debt Refinancing and Liquidity
STARBUCKS CORP · 2026-11-12 · Importance 55 · Surprise 42 · In source text
Cash and investments totaled $4.2 billion at September 27, 2026, compared with $3.7 billion a year earlier, including $1.3 billion held in foreign subsidiaries. In May 2026, Starbucks repurchased approximately $1.3 billion of senior notes using proceeds from the China divestiture; total fiscal 2026 long-term debt repayments were $2.8 billion. The company had no borrowings under its $3.0 billion revolving credit facility, commercial paper program, or Japanese yen credit facilities at September 27, 2026, and reported $3.0 billion of available contractual borrowing capacity. Starbucks was compliant with applicable credit-facility and long-term debt covenants.
Key facts
- Starbucks’ financing cash use increased $3.3 billion, primarily due to $2.8 billion in long-term debt repayments in fiscal 2026 versus $1.3 billion in fiscal 2025, and no fiscal 2026 debt issuance versus $1.7 billion raised in fiscal 2025. source
- Starbucks’ cash and investments were $4.2 billion as of September 27, 2026, compared with $3.7 billion as of September 28, 2025. source
- In May 2026, Starbucks completed cash tender offers and repurchased approximately $1.3 billion aggregate principal amount of senior notes using proceeds from the China retail divestiture. source
- Starbucks’ $3.0 billion unsecured five-year revolving credit facility is set to mature June 13, 2030, and includes $150.0 million available for letters of credit. source
- Starbucks’ commercial paper program permits up to $3.0 billion aggregate outstanding, with individual maturities no longer than 397 days. source
- Approximately $1.3 billion of Starbucks’ cash and short-term investments were held in foreign subsidiaries as of September 27, 2026. source
- Starbucks may negotiate to increase the revolving credit facility commitment by an additional $1.0 billion. source
- Starbucks expects operating cash flows, existing cash and investments, and potential debt issuance to fund capital requirements and shareholder distributions for at least the next 12 months. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -11.6% | Starbucks’ financing cash use increased $3.3 billion, primarily due to $2.8 billion in long-term debt repayments in fiscal 2026 versus… |
| liability | negative | realized | -9.9% | Starbucks’ financing cash use increased $3.3 billion, primarily due to $2.8 billion in long-term debt repayments in fiscal 2026 versus… |
| cash | positive | realized | +1.8% | Starbucks’ cash and investments were $4.2 billion as of September 27, 2026, compared with $3.7 billion as of September 28, 2025. |