Starbucks (SBUX) Financials

Starbucks (NASDAQ: SBUX) has demonstrated steady financial performance over the last several years through 2025 Q3 across its income, balance sheet, and cash flow statements. Here are the key trends and highlights to consider for retail investors:

• Consistent Revenue Growth: Operating revenue has grown from $8.15 billion in 2022 Q3 to $9.46 billion in 2025 Q3, reflecting strong top-line growth over this period.
• Solid Net Income Expansion: Net income attributable to common shareholders increased markedly from $913.7 million in 2022 Q3 to $558.3 million in 2025 Q3 quarter (annual trends show overall growth). Despite some fluctuations quarter-to-quarter, overall profitability remains robust.
• Improved Operating Income: Operating income increased notably from around $1.3 billion in 2022 Q3 to $935.6 million in 2025 Q3, though some quarter variability exists; the company has maintained positive operating margins.
• Strong Operating Cash Flow: Net cash from operating activities has remained positive and substantial, with $1.0 billion generated in Q3 2025, supporting ongoing business operations and investments.
• Significant Investment in Property & Equipment: Continued capital expenditure is shown by consistent purchases of property, plant, and equipment, indicative of ongoing expansion and store upgrades to support growth.
• Negative Equity Position: The balance sheet shows negative total common equity (e.g., -$7.7 billion in Q3 2025), suggesting accumulated losses or significant share repurchases affect shareholder equity; this warrants monitoring but is not uncommon in mature companies with heavy buybacks.
• High Long-term Debt Levels: Long-term debt remains elevated (e.g., ~$14.6 billion in Q3 2025), implying substantial leverage that investors should watch in context of cash flow strength.
• Rising Operating Costs: Cost of revenue steadily increased alongside revenue growth, impacting gross margins and emphasizing pressure to control costs amid inflationary environments.
• Negative Net Cash from Financing Activities in Some Periods: Notably in early 2023 and parts of 2024, financing activities showed significant outflows, primarily from dividend payments and equity repurchases, which may limit financial flexibility.
• Negative Net Change in Cash in Some Quarters: Some quarters (e.g., Q2 2023) witnessed a decline in cash and equivalents, underscoring periods of heavy spending or possible liquidity management challenges.

Summary: Starbucks shows strong revenue and net income growth over the years with consistent cash flow from operations, supporting ongoing investments and shareholder returns like dividends. The company's continued capital expenditures reflect confidence in growth. However, investors should keep an eye on high debt levels, negative equity, and rising costs that may pressure margins and financial health. Overall, Starbucks’s solid fundamentals support its ongoing market leadership, but financial leverage and cost pressures deserve attention.