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Restructuring and Related Activities | 12 Months Ended
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Sep. 28, 2025
Restructuring and Related Activities [Abstract] |
Restructuring, Impairment, and Other Activities Disclosure | Restructuring In the fourth quarter of fiscal 2024, we announced our “Back to Starbucks” strategy, which was implemented with the goal to bring customers back to our stores and return to growth by revitalizing coffeehouses, enhancing the customer experience, and improving efficiency. As part of this strategy, during the second quarter of fiscal 2025, we further decided and announced our plan to restructure our support organization in an effort to operate more efficiently, increase accountability, reduce complexity, and drive better integration, which resulted in a reduction in our support partner workforce. In the fourth quarter of fiscal 2025, we announced a restructuring plan involving the closure of coffeehouses, and the further transformation of our support organization, as part of the Company’s “Back to Starbucks” strategy. We assessed our existing store portfolio with respect to both whether coffeehouses had a viable path to offering the physical environment consistent with the brand and a clear path to financial performance, and we closed, or plan to close, coffeehouses that did not meet these criteria. During the fiscal year ended September 28, 2025, 627 stores were closed and approximately $892.0 million was recorded to restructuring and impairments on our consolidated statement of earnings. This total primarily consists of disposal and impairment of company-operated store assets, employee separation benefits, and accelerated amortization of ROU lease assets and other lease exit costs. The table below presents the restructuring and impairment charges by reportable operating segment and Corporate and Other (in millions):
Fiscal Year Ended September 28, 2025 | North America |  | International |  |  |  | Channel Development |  | Corporate and Other |  | Total
Disposal and impairment of store assets | $ | 313.7 |  |  | $ | 39.1 |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 352.8 |
Employee severance, separation costs, and other | 103.8 |  |  | 39.8 |  |  |  |  | 1.9 |  |  | 154.4 |  |  | 299.9 |
Amortization of ROU lease assets and other lease exit costs | 235.7 |  |  | 3.6 |  |  |  |  | — |  |  | — |  |  | 239.3 |
Total Restructuring and impairment costs | $ | 653.2 |  |  | $ | 82.5 |  |  |  | $ | 1.9 |  | $ | 154.4 |  | $ | 892.0
The table below presents the balance of liabilities related to the restructuring plan by major type of cost (in millions):
Fiscal Year Ended September 28, 2025 | Employee severance, separation costs, and other |  | Lease exit and other related costs(1) |  |  |  |  | Total
Beginning balance | $ | — |  |  | $ | — |  |  |  |  |  | $ | — |
Restructuring costs incurred | 299.9 |  |  | 239.3 |  |  |  |  |  | 539.2 |
Cash payments | (141.0) |  |  | (0.4) |  |  |  |  |  | (141.4) |
Ending balance | $ | 158.9 |  |  | $ | 238.9 |  |  |  |  |  | $ | 397.8 |
(1) The total operating lease liability balance for restructuring store closures was $272.8 million as of September 28, 2025. As of September 28, 2025, the majority of the remaining accrued employee separation costs are reflected in accrued payroll and benefits and the remaining accrued lease-related costs are reflected in the operating lease liability on the consolidated balance sheet. Inclusive of fiscal year 2025 charges, the Company estimates that it will incur approximately $1.0 billion in total pre-tax restructuring charges related to the “Back to Starbucks” restructuring plan announced in the fourth quarter of fiscal 2025, in addition to the $137 million incurred resulting from restructuring activities in the second and third quarters of fiscal 2025. Estimated restructuring charges expected to be incurred in fiscal year 2026 are approximately $230 million, primarily related to accelerated ROU lease asset amortization and other lease exit costs in our North America and International operating segments. We anticipate completion of the plan and store closures within fiscal year 2026. The majority of the accrued liability balance as of September 28, 2025 related to restructuring charges is expected to be paid out in fiscal year 2026.

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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