Starbucks (SBUX) Financials

Over the last four years, Starbucks (NASDAQ: SBUX) has demonstrated solid revenue growth and profitability, albeit with some volatility quarter-to-quarter. Below are key financial trends based on the quarterly income statements, cash flow statements, and balance sheets:

• Total revenue increased from approximately $8.15 billion in Q3 2022 to about $8.76 billion in Q2 2025, showing consistent sales growth.
• Net income attributable to common shareholders grew from roughly $913 million in Q3 2022 to $384 million in Q2 2025, with fluctuations due to seasonality and operating costs.
• Gross profit margin remains strong, with total gross profit around $1.85 billion in Q2 2025 compared to $2.23 billion in Q1 2023, reflecting effective cost management despite inflationary pressures.
• Cash flow from operating activities was positive and robust in most quarters, reaching as high as $2.3 billion in Q1 2024, indicating a healthy operating cash generation capacity.
• Starbucks consistently pays cash dividends to common shareholders, maintaining or gradually increasing dividend payouts per share from $0.49 in Q1 2023 to $0.61 in Q2 2025, signaling confidence in cash flow.
• Capital expenditures for property, plant, and equipment are substantial, ranging from $423 million to $798 million per quarter, showing ongoing investments in store expansion and upgrades.
• Total assets have steadily increased, reaching over $31.6 billion by Q2 2025, with significant investments in plant, property, equipment, and other noncurrent operating assets.
• Total liabilities remain high and have increased from about $37 billion in early 2022 to nearly $39.2 billion in Q2 2025, predominantly due to long-term debt and deferred revenue liabilities.
• Starbucks’ total common equity is negative, declining further to around -$7.6 billion in Q2 2025, primarily due to accumulated retained losses which could concern investors about leverage and financial flexibility.
• Cash and cash equivalents fluctuated considerably quarter-over-quarter, with a notable $1 billion decrease in Q2 2025, which could impact liquidity in the short term.

Summary: Starbucks has shown consistent revenue growth and operational cash generation over the past four years, supporting sustained dividend payments and capital investments. However, the firm's leverage and negative equity position require monitoring, as elevated liabilities and declining equity may impact financial stability. Retail investors should weigh the company’s decent profitability against its increasing liabilities and cash position volatility when considering an investment.