The Revenue LinesWide moat

Starbucks (SBUX) — moat facet

Three-quarters of the revenue earns 11 cents on the dollar; the grocery arm earns 47 and is five percent of the company.

Starbucks reports three segments and a small Corporate and Other line. In fiscal 2025, the year to September, North America had revenue of $27,373.1 million, International $7,819.9 million and Channel Development $1,871.7 million, with $119.7 million in Corporate and Other 1. North America is 74% of the company 2.

Segment operating margin, fiscal 2025 (%)11.5%North America12.1%International47.3%Channel DevelopmentStarbucks Form 10-K FY2025, segment note
The smallest segment earns four times the margin of the largest.

The profit runs the other way. North America earned $3,156.7 million of operating income, International $950.0 million and Channel Development $885.1 million, against a Corporate and Other loss of $2,055.2 million, which is most of the head office 3. Channel Development is 5% of revenue and earned 47.3 cents of operating income on each dollar; North America earned 11.5 cents 4.

The three moved in different directions over two years. North America's operating income fell from $5,495.7 million in fiscal 2023 to $3,156.7 million in fiscal 2025 5, as Starbucks spent on labour and closed stores. International's fell from $1,230.9 million to $950.0 million 6. Channel Development's barely moved.

The latest quarter shows the reshaped company. In the three months to June 2026 International revenue fell to $1,322.6 million from $2,010.7 million after the China business was deconsolidated, while North America rose to $7,395.1 million from $6,927.0 million 7. Channel Development grew fastest, to $587.9 million from $483.8 million 8.

The leaves follow the chart's bands, with Corporate and Other explained here. The moat arguments, the stored-value float, the Nestlé annuity and the store estate, are under The Moat; the leaves keep to each segment's revenue and profit. The test for the three together is North America's operating margin: 13.6% in the June 2026 quarter against 20.7% in fiscal 2023 9, and whether Back to Starbucks brings it back toward the old level.

Moat trajectory: Holding steady

North America's margin recovered to 13.6% in the June 2026 quarter from 11.5% for fiscal 2025.

The number that tests this moat
Moat Explorer calc
North America segment operating margin, latest quarter
13.6% in the June 2026 quarter, from 20.7% for fiscal 2023

The segment is three-quarters of revenue; its margin decides whether Back to Starbucks pays.

How it's calculated: North America operating income / revenue: $1,008.9M / $7,395.1M
Source: Starbucks Form 10-Q, Q3 fiscal 2026 ↗
Dig deeper
DIG DEEPER 01
North America
The American coffeehouses gave up nine points of margin in two years to win their customers back, and have started to.
DIG DEEPER 02
International
A third smaller and more profitable per dollar, now that China belongs to a joint venture.
DIG DEEPER 03
Channel Development
Coffee in supermarkets, sold by Nestlé and PepsiCo, at about half of every dollar in operating income.
References
  1. ReportedIn fiscal 2025, the year to September, North America had revenue of $27,373.1 million, International $7,819.9 million and Channel Development $1,871.7 million, with $119.7 million in Corporate and Other .
    Starbucks Form 10-K FY2025 - segment note: revenue, costs and operating income by segment for fiscal 2023-2025; income from equity method investees; the Nestlé Global Coffee Alliance and ready-to-drink partnerships; the approximately $7 billion Nestlé up-front payment — FY2023-FY2025 · publ. November 2025 · source ↗
  2. Moat Explorer calcNorth America is 74% of the company .
    Moat Explorer calculation from Starbucks' Form 10-K FY2025 and Q3 fiscal 2026 Form 10-Q: segment shares and operating margins — FY2023 to Q3 FY2026 · publ. 2026-09-23 · source ↗
  3. ReportedNorth America earned $3,156.7 million of operating income, International $950.0 million and Channel Development $885.1 million, against a Corporate and Other loss of $2,055.2 million, which is most of the head office .
    Starbucks Form 10-K FY2025 - segment note: revenue, costs and operating income by segment for fiscal 2023-2025; income from equity method investees; the Nestlé Global Coffee Alliance and ready-to-drink partnerships; the approximately $7 billion Nestlé up-front payment — FY2023-FY2025 · publ. November 2025 · source ↗
  4. Moat Explorer calcChannel Development is 5% of revenue and earned 47.3 cents of operating income on each dollar; North America earned 11.5 cents .
    Moat Explorer calculation from Starbucks' Form 10-K FY2025 and Q3 fiscal 2026 Form 10-Q: segment shares and operating margins — FY2023 to Q3 FY2026 · publ. 2026-09-23 · source ↗
  5. ReportedNorth America's operating income fell from $5,495.7 million in fiscal 2023 to $3,156.7 million in fiscal 2025 , as Starbucks spent on labour and closed stores.
    Starbucks Form 10-K FY2025 - segment note: revenue, costs and operating income by segment for fiscal 2023-2025; income from equity method investees; the Nestlé Global Coffee Alliance and ready-to-drink partnerships; the approximately $7 billion Nestlé up-front payment — FY2023-FY2025 · publ. November 2025 · source ↗
  6. ReportedInternational's fell from $1,230.9 million to $950.0 million .
    Starbucks Form 10-K FY2025 - segment note: revenue, costs and operating income by segment for fiscal 2023-2025; income from equity method investees; the Nestlé Global Coffee Alliance and ready-to-drink partnerships; the approximately $7 billion Nestlé up-front payment — FY2023-FY2025 · publ. November 2025 · source ↗
  7. ReportedIn the three months to June 2026 International revenue fell to $1,322.6 million from $2,010.7 million after the China business was deconsolidated, while North America rose to $7,395.1 million from $6,927.0 million .
    Starbucks Form 10-Q, quarter ended 28 June 2026 - segment revenue and operating income for the quarter and three quarters; U.S. comparable sales; the China joint venture with Boyu Capital (7,991 stores converted, 40% stake carried at $1.2 billion, $52.5 million of revenue from the joint venture); outlook for the licensed international business — Q3 FY2026 · publ. 29 July 2026 · source ↗
  8. ReportedChannel Development grew fastest, to $587.9 million from $483.8 million .
    Starbucks Form 10-Q, quarter ended 28 June 2026 - segment revenue and operating income for the quarter and three quarters; U.S. comparable sales; the China joint venture with Boyu Capital (7,991 stores converted, 40% stake carried at $1.2 billion, $52.5 million of revenue from the joint venture); outlook for the licensed international business — Q3 FY2026 · publ. 29 July 2026 · source ↗
  9. Moat Explorer calcThe test for the three together is North America's operating margin: 13.6% in the June 2026 quarter against 20.7% in fiscal 2023 , and whether Back to Starbucks brings it back toward the old level.
    Moat Explorer calculation from Starbucks' Form 10-K FY2025 and Q3 fiscal 2026 Form 10-Q: segment shares and operating margins — FY2023 to Q3 FY2026 · publ. 2026-09-23 · source ↗
Sources
Generated September 23, 2026