No Customer Above Ten PercentWide moat

Starbucks (SBUX) — moat facet

Nobody negotiates the price of a latte. The absence of concentration protects against one customer leaving and does nothing against all of them being the same customer.

1. ReportedThe disclosure is one line: "No customer accounts for 10% or more of our revenues." There is no top-ten table, no named account, no receivables concentration to manage.
   Starbucks Corporation, Form 10-K FY2025 — Note 11, Deferred Revenue, Note 17, Segment Reporting, Note 18, Restructuring, and Note 19, Subsequent Event. During fiscal 2018 Starbucks licensed the rights to sell and market its products in authorized channels through the Global Coffee Alliance and received an up-front prepaid royalty from Nestlé; the up-front payment of approximately $7 billion was recorded as deferred revenue because Starbucks has continuing performance obligations to support the alliance, including providing Nestlé access to certain intellectual properties and products for future resale, and is being recognised as other revenue on a straight-line basis over the estimated economic life of the arrangement of 40 years (a term beginning in fiscal 2018 and therefore running to 2058), a ratable pattern reflecting obligations that are generally constant throughout the term. As of 28 September 2025 the current and long-term deferred revenue related to the Nestlé up-front payment was $177.0 million and $5.6 billion respectively, against $177.0 million and $5.8 billion a year earlier, and Starbucks recognised $176.5 million of prepaid royalty revenue related to Nestlé in each of fiscal 2025, 2024 and 2023. Changes in the deferred revenue balance for stored value cards and the loyalty program: opening balance at 29 September 2024 of $1,718.7 million, revenue deferred from card activations, card reloads and Stars earned of $15,245.8 million, revenue recognised from card and Stars redemptions and breakage of $(15,199.5) million, other $(13.3) million, closing balance at 28 September 2025 of $1,751.7 million; the prior year ran from $1,567.5 million with $15,807.1 million deferred and $(15,665.1) million recognised. For the fiscal years ended 28 September 2025, 29 September 2024 and 1 October 2023, Starbucks recognised breakage revenue of $200.4 million, $187.6 million and $196.1 million in company-operated store revenues, and $22.0 million, $20.0 million and $18.9 million in licensed store revenues. Total breakage recognised in fiscal 2025 across company-operated and licensed store revenues was therefore $222.4 million. Customers who register their stored value card in the US, Canada and certain other countries are automatically enrolled in Starbucks Rewards, primarily a spend-based loyalty program in which members earn Stars; in many company-operated markets including the US the cards do not expire and no service fees decrement balances, and a portion is recognised as breakage over time in proportion to redemptions based on historical redemption rates by market. Segment revenue mix by product type: beverage $22,539.9M (61%), food $7,049.9M (19%), other $7,594.6M (20%) for fiscal 2025. Information by geographic area: net revenues United States $27,124.7M, China $3,160.8M, other countries $6,898.9M; long-lived assets United States $15,952.7M, China $4,276.8M, other countries $4,407.9M; no customer accounts for 10% or more of revenues. Segment financials fiscal 2025: North America $27,373.1M, International $7,819.9M, Channel Development $1,871.7M, Corporate and Other $119.7M; fiscal 2024: $27,009.5M, $7,338.9M, $1,769.8M, $58.0M; fiscal 2023: $26,569.6M, $7,487.6M, $1,893.8M. On 3 November 2025 Starbucks announced an agreement to form a joint venture with Boyu Capital to operate Starbucks retail in China, under which Boyu will acquire up to a 60% interest based on a cash-free, debt-free mutually agreed total enterprise value of approximately $4 billion, with Starbucks retaining a 40% interest and continuing to own and license the Starbucks brand and intellectual property to the new entity, expected to close by early calendar year 2026. — FY2025 · publ. 2025-11-14 · source ↗
2. ReportedRevenue arrives a few dollars at a time from individuals across 90 markets, with the United States at $27,124.7 million, China at $3,160.8 million and other countries at $6,898.9 million.
   Starbucks Corporation, Form 10-K FY2025 — Note 11, Deferred Revenue, Note 17, Segment Reporting, Note 18, Restructuring, and Note 19, Subsequent Event. During fiscal 2018 Starbucks licensed the rights to sell and market its products in authorized channels through the Global Coffee Alliance and received an up-front prepaid royalty from Nestlé; the up-front payment of approximately $7 billion was recorded as deferred revenue because Starbucks has continuing performance obligations to support the alliance, including providing Nestlé access to certain intellectual properties and products for future resale, and is being recognised as other revenue on a straight-line basis over the estimated economic life of the arrangement of 40 years (a term beginning in fiscal 2018 and therefore running to 2058), a ratable pattern reflecting obligations that are generally constant throughout the term. As of 28 September 2025 the current and long-term deferred revenue related to the Nestlé up-front payment was $177.0 million and $5.6 billion respectively, against $177.0 million and $5.8 billion a year earlier, and Starbucks recognised $176.5 million of prepaid royalty revenue related to Nestlé in each of fiscal 2025, 2024 and 2023. Changes in the deferred revenue balance for stored value cards and the loyalty program: opening balance at 29 September 2024 of $1,718.7 million, revenue deferred from card activations, card reloads and Stars earned of $15,245.8 million, revenue recognised from card and Stars redemptions and breakage of $(15,199.5) million, other $(13.3) million, closing balance at 28 September 2025 of $1,751.7 million; the prior year ran from $1,567.5 million with $15,807.1 million deferred and $(15,665.1) million recognised. For the fiscal years ended 28 September 2025, 29 September 2024 and 1 October 2023, Starbucks recognised breakage revenue of $200.4 million, $187.6 million and $196.1 million in company-operated store revenues, and $22.0 million, $20.0 million and $18.9 million in licensed store revenues. Total breakage recognised in fiscal 2025 across company-operated and licensed store revenues was therefore $222.4 million. Customers who register their stored value card in the US, Canada and certain other countries are automatically enrolled in Starbucks Rewards, primarily a spend-based loyalty program in which members earn Stars; in many company-operated markets including the US the cards do not expire and no service fees decrement balances, and a portion is recognised as breakage over time in proportion to redemptions based on historical redemption rates by market. Segment revenue mix by product type: beverage $22,539.9M (61%), food $7,049.9M (19%), other $7,594.6M (20%) for fiscal 2025. Information by geographic area: net revenues United States $27,124.7M, China $3,160.8M, other countries $6,898.9M; long-lived assets United States $15,952.7M, China $4,276.8M, other countries $4,407.9M; no customer accounts for 10% or more of revenues. Segment financials fiscal 2025: North America $27,373.1M, International $7,819.9M, Channel Development $1,871.7M, Corporate and Other $119.7M; fiscal 2024: $27,009.5M, $7,338.9M, $1,769.8M, $58.0M; fiscal 2023: $26,569.6M, $7,487.6M, $1,893.8M. On 3 November 2025 Starbucks announced an agreement to form a joint venture with Boyu Capital to operate Starbucks retail in China, under which Boyu will acquire up to a 60% interest based on a cash-free, debt-free mutually agreed total enterprise value of approximately $4 billion, with Starbucks retaining a 40% interest and continuing to own and license the Starbucks brand and intellectual property to the new entity, expected to close by early calendar year 2026. — FY2025 · publ. 2025-11-14 · source ↗
3. ReportedCoreWeave books about two-thirds of revenue from one buyer; Nvidia names direct customers at 22% and 14%; Kioxia names Apple at 20.4%.
   CoreWeave Form 10-K, fiscal 2025 — revenue $5.13B (+168%), net loss ~−$1.2B; customer concentration disclosed (largest customer ~2/3 of revenue) — FY2025 · publ. early 2026 · source ↗
4. ReportedCoreWeave books about two-thirds of revenue from one buyer; Nvidia names direct customers at 22% and 14%; Kioxia names Apple at 20.4%.
   NVIDIA Form 10-K, FY2026 — "For fiscal year 2026, sales to one direct customer represented 22% of total revenue and sales to another direct customer represented 14% of total revenue"; FY2025: one at 12% and two at 11% each; FY2024: one at 13%. Direct customers include OEMs, ODMs, distributors and system integrators; indirect customers (CSPs, Neocloud builders, AI model makers, enterprises, public sector) buy through them, and NVIDIA "estimate[s] some individually representing 10% or more of our revenue". "Our revenue is concentrated among a limited number of direct and indirect customers and this trend may continue." — FY2026 (ended Jan 25, 2026) · publ. February 2026 · source ↗
5. ReportedCoreWeave books about two-thirds of revenue from one buyer; Nvidia names direct customers at 22% and 14%; Kioxia names Apple at 20.4%.
   Kioxia Holdings Corporation, Annual Securities Report for the year from 1 April 2025 to 31 March 2026 (8th Period) — revenue ¥2,337,628M against ¥1,706,460M, gross profit ¥1,012,904M, operating profit ¥869,013M, profit for the year ¥554,490M; research and development cost ¥141,052M against ¥132,798M; purchases of property, plant and equipment ¥281,062M against ¥223,847M; operating cash flow ¥616,540M; proceeds from government grants ¥56,396M against ¥43,748M, from an approved ceiling of ¥150.0bn for flash production at the Yokkaichi and Kitakami plants with about ¥31.8bn not yet received. Revenue by application: SSD & Storage ¥1,362,638M, Smart Devices ¥759,978M, Other ¥215,012M — 'Other' including retail products and sales to the Sandisk group recorded through the three manufacturing joint ventures. Revenue by geography: Japan ¥263,252M, North America and Europe ¥1,217,643M, Asia ¥856,733M, with the United States ¥1,098,832M, China ¥381,857M and Taiwan ¥300,932M. Non-current assets: Japan ¥1,658,950M, North America and Europe ¥1,986M, Asia ¥6,298M. Major customers: Apple group ¥476,014M (20.4%), with the Sandisk and Dell groups omitted for the year as each fell below 10% of sales. Flash Partners Ltd., Flash Alliance Ltd. and Flash Forward LLC are accounted for as joint operations with 50.1% of the voting rights and equal decision-making rights shared with Sandisk. Net interest-bearing debt ¥552,085M against equity of ¥1,398,929M — a net debt-to-equity ratio of 0.39 times, from ¥931,035M against ¥737,565M and 1.26 times a year earlier; USD-denominated senior notes at 6.25% (2030) and 6.625% (2033); goodwill of ¥395,585M from the 1 June 2018 acquisition of the former Toshiba Memory Corporation. Bain Capital funds indirectly hold 21.87% and Toshiba Corporation 17.59% of outstanding common shares, both having sold substantial holdings during the year. Risk factors state that the Yokkaichi Plant is located in an area with a high risk of earthquakes and floods and the Kitakami Plant in an area severely damaged by the 2011 Tohoku Earthquake, and name US-China trade frictions and US tariff policy among factors that may materially affect the business. The company does not provide plans or progress reports for the overall fiscal year. — year to 31 March 2026 · publ. 2026-06 · source ↗
6. ReportedThat is exactly what fiscal 2025 showed: comparable transactions fell 4% in North America with no single customer having left.
   Starbucks Corporation, Form 10-K FY2025 — Item 7, Management's Discussion and Analysis. Total net revenues increased 3% to $37.2 billion in fiscal 2025 compared to $36.2 billion; consolidated operating income decreased to $2.9 billion from $5.4 billion, with an operating margin of 7.9% against 15.0% — a contraction of 710 basis points primarily due to restructuring costs associated with the closure of coffeehouses and simplification of the support organisation (approximately 240 basis points), deleverage (approximately 210 basis points), investments in support of Back to Starbucks largely in labour hours (approximately 130 basis points) and inflation (approximately 80 basis points). Diluted EPS declined to $1.63 from $3.31. Capital expenditures were $2.3 billion against $2.8 billion, and $2.8 billion was returned to shareholders against $3.8 billion. Consolidated net revenues by type: company-operated stores $30,744.8M (+3.3%), licensed stores $4,350.4M (-3.4%), other $2,089.2M (+9.7%). Company-operated store revenue rose $979 million on net new company-operated store growth of 5%, or 1,010 stores, prior to the 627 restructuring closures late in the fourth quarter, plus $131 million from the conversion of 113 licensed stores following the 23.5 Degrees acquisition, partially offset by a 1% decline in comparable store sales ($408 million) attributable to a 2% decline in comparable transactions partially offset by a 1% increase in average ticket, primarily due to annualization of prior year pricing. By segment: North America total net revenues $27,373.1M (company-operated $24,793.0M at 90.6%, licensed $2,575.6M), operating income $3,156.7M with the margin contracting 830 basis points to 11.5% driven by deleverage (approximately 310 basis points), restructuring (approximately 240) and Back to Starbucks investments largely in labour hours (approximately 180); North America revenue rose 1% on net new company-operated store growth of 4%, or 441 stores, prior to the 584 restructuring closures, offset by a 2% decline in comparable store sales driven by a 4% decline in comparable transactions and a 2% increase in average ticket; store operating expenses were 56.4% of related revenues against 51.4%. International total net revenues $7,819.9M (+7%), operating income $950.0M at a 12.1% margin, contracting 210 basis points. Channel Development net revenues $1,871.7M (+6%), operating income $885.1M at a 47.3% margin, contracting 500 basis points primarily driven by a decline in North American Coffee Partnership joint venture income (approximately 350 basis points) and higher global product costs (approximately 90 basis points), with income from equity investees of $249.6M. Corporate and Other operating loss $(2,055.2)M. Cash and investments were $3.7 billion. Store closures in North America were substantially completed in fiscal 2025 and international closures were expected to complete in the first half of fiscal 2026; Starbucks expects a fiscal 2026 reduction in baseline North America company-operated revenues, partially offset by sales transfer to nearby coffeehouses, and expects the future impact on operating margins to be slightly accretive. The Green Apron Service model went live across the full US company-operated store portfolio in the fourth quarter of fiscal 2025, and Starbucks expects macroeconomic challenges including new tariffs and dynamic coffee prices to continue. — FY2025 · publ. 2025-11-14 · source ↗
7. ReportedSo the absence of concentration protects against idiosyncratic loss and does nothing against a correlated one — which, in a company where beverages are 61% of revenue and the United States is 73%, is the risk that actually exists.
   Starbucks Corporation, Form 10-K FY2025 — consolidated statements of earnings, balance sheets and cash flows. Net revenues: company-operated stores $30,744.8M, $29,765.9M and $29,462.3M; licensed stores $4,350.4M, $4,505.1M and $4,512.7M; other $2,089.2M, $1,905.2M and $2,000.6M; total $37,184.4M, $36,176.2M and $35,975.6M for fiscal 2025, 2024 and 2023. Product and distribution costs $11,658.2M; store operating expenses $17,058.9M against $15,286.5M and $14,720.3M; other operating expenses $584.6M; depreciation and amortisation $1,684.7M; general and administrative $2,617.2M; restructuring and impairments $892.0M against nil and $21.8M; total operating expenses $34,495.6M; income from equity investees $247.8M against $301.2M and $298.4M; operating income $2,936.6M against $5,408.8M and $5,870.8M; interest income and other net $113.3M; interest expense $542.6M against $562.0M and $550.1M; earnings before income taxes $2,507.3M; income tax expense $650.6M; net earnings attributable to Starbucks $1,856.4M against $3,760.9M and $4,124.5M; diluted EPS $1.63 against $3.31 and $3.58 on 1,139.8 million diluted shares. Balance sheet at 28 September 2025: cash and cash equivalents $3,219.8M, short-term investments $247.2M, accounts receivable $1,277.5M, inventories $2,185.6M, total current assets $7,382.3M, equity investments $466.2M, property plant and equipment net $8,493.5M, operating lease right-of-use asset $9,315.7M, goodwill $3,368.9M, total assets $32,019.7M; accounts payable $1,852.8M, accrued liabilities $2,359.7M, current portion of operating lease liability $1,564.5M, stored value card liability and current portion of deferred revenue $1,840.6M, current portion of long-term debt $1,498.9M, total current liabilities $10,210.4M, long-term debt $14,575.9M, operating lease liability $8,972.2M, deferred revenue $5,772.6M, total liabilities $40,108.9M, retained deficit $(8,272.5)M, total shareholders' deficit $(8,096.6)M, with 1,136.9 million shares issued and outstanding against 1,133.5 million. Cash flows: net earnings including noncontrolling interests $1,856.7M, depreciation and amortisation $1,771.5M, non-cash lease costs $1,513.8M, loss on disposal, impairment and accelerated amortisation of assets $834.7M, stock-based compensation $318.3M; net cash provided by operating activities $4,747.5M against $6,095.6M and $6,008.7M; additions to property, plant and equipment $2,305.5M against $2,777.5M and $2,333.6M. Historic figures from EDGAR XBRL: revenue $19,162.7M (FY2015), $21,315.9M, $22,386.8M, $24,719.5M, $26,508.6M, $23,518.0M (FY2020), $29,060.6M, $32,250.3M, $35,975.6M, $36,176.2M and $37,184.4M (FY2025); net income $2,757.4M, $2,817.7M, $2,884.7M, $4,518.3M, $3,599.2M, $928.3M, $4,199.3M, $3,281.6M, $4,124.5M, $3,760.9M and $1,856.4M; diluted EPS $1.82, $1.90, $1.97, $3.24, $2.92, $0.79, $3.54, $2.83, $3.58, $3.31 and $1.63; operating income $3,601.0M, $4,171.9M, $4,134.7M, $3,883.3M, $4,077.9M, $1,561.7M, $4,872.1M, $4,617.8M, $5,870.8M, $5,408.8M and $2,936.6M. Return on invested capital computed from the same EDGAR filings as NOPAT over average operating invested capital (NOPAT = operating income x (1 - effective tax rate); invested capital = total assets - current liabilities - cash) runs 38.4%, 37.7%, 36.1%, 34.9%, 32.7%, 8.8%, 22.2%, 21.9%, 27.5%, 23.0% and 11.6% for fiscal 2015 through 2025; the step-down after fiscal 2019 reflects the adoption of lease accounting, which added roughly $9 billion of operating lease right-of-use assets to the denominator. — FY2025 · publ. 2025-11-14 · source ↗

• Starbucks Corporation Form 10-K, FY2025 (SEC EDGAR)