SBUX · 10-K · 2026A · Full report

Operating Expense Trends

STARBUCKS CORP · 2026-11-12 · Importance 25 · Surprise 32

General and administrative expense declined $244 million to $2.373 billion, driven by $292 million in restructuring-related savings and efficiencies, $83 million from the China model conversion, and $81 million from lapping Leadership Experience 2025. Those reductions were partly offset by $152 million in performance-based compensation and $71 million in China transaction and transition expenses. Restructuring and impairment expense decreased $203 million to $689 million, as lower prior-year support-organization and coffeehouse closure impacts were partly offset by the current-year Siren Retail impairment. Corporate and Other operating loss narrowed $85 million to $1.970 billion, principally from $227 million in restructuring savings and efficiencies and $51 million in lower restructuring costs.

Key facts

• Other operating expenses decreased $40 million, primarily due to savings from simplifying Starbucks’ licensed business support organization. source
• General and administrative expenses decreased $244 million, largely due to $292 million of restructuring-related savings and operational efficiencies, $83 million from the China joint venture conversion, and $81 million from lapping Leadership Experience 2025. source
• General and administrative expense decreases were partly offset by $152 million in performance-based compensation and $71 million in transaction and transition-related China joint venture conversion expenses. source
• Product and distribution costs as a percentage of total net revenues increased 90 basis points, largely due to mix shifts (90 basis points). source
• Coffeehouse operating expenses as a percentage of total net revenues decreased 60 basis points; as a percentage of company-operated coffeehouse revenues, they increased 10 basis points, primarily due to labor investments of approximately 210 basis points, partly offset by sales leverage. source