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Restructuring and Related Activities
 6 Months Ended
Mar. 29, 2026
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. During the quarter and two quarters ended March 30, 2025, we recognized pre-tax restructuring charges of $116.2 million, primarily associated with partner severance costs. These costs were recorded to restructuring and impairments on our consolidated statement of earnings.

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 quarter and two quarters ended March 29, 2026, 62 and 227 stores, respectively, were closed, and approximately $25.1 million and $113.2 million, respectively, was recorded to restructuring and impairments on our consolidated statement of earnings. This total consists of accelerated amortization of ROU lease assets and other lease exit costs, disposal and impairment of company-operated store assets, and employee severance, separation and other costs.

In the second quarter of fiscal 2026, management approved a restructuring plan to relocate certain functions of our support organization to an additional office in Nashville, Tennessee, further supporting the Company’s “Back to Starbucks” strategy and the intention to establish a more strategic presence in the Southeast region of the United States. Restructuring charges under this plan were immaterial during the quarter ended March 29, 2026.

The tables below present the restructuring and impairment charges by reportable operating segment and Corporate and Other (in millions):
Quarter Ended March 29, 2026
North AmericaInternational
Channel
Development
Corporate and Other

Total
Disposal and impairment of store assets$14.2 $0.1 $— $— $14.3 
Employee severance, separation and other costs(6.4)3.2 (0.1)11.1 7.8 
Amortization of ROU lease assets and other lease exit costs
(2.5)5.5 — — 3.0 
Total Restructuring and impairment costs
$5.3 $8.8$(0.1)$11.1$25.1
Two Quarters Ended March 29, 2026
North AmericaInternational
Channel
Development
Corporate and Other

Total
Disposal and impairment of store assets$39.0 $0.1 $— $— $39.1 
Employee severance, separation and other costs1.6 5.1 0.1 15.4 22.2 
Amortization of ROU lease assets and other lease exit costs
4.7 47.2 — — 51.9 
Total Restructuring and impairment costs
$45.3$52.4$0.1$15.4$113.2

The table below presents the balance of liabilities related to the restructuring plan by major type of cost (in millions):

Employee severance, separation and other costs
Lease exit and other related costs (1)

Total
Beginning balance at September 28, 2025
$158.9 $238.9 $397.8 
Restructuring costs incurred
22.2 51.9 74.1 
Cash payments
(137.9)(93.0)(230.9)
Divestiture (2)
(2.6)(1.9)(4.5)
Other (3)
(14.2)— (14.2)
Ending balance at March 29, 2026
$26.4 $195.9 $222.3 
(1) The operating lease liability balance for total stores under the restructuring plan was $243.2 million as of March 29, 2026.
(2) The decrease was a result of Starbucks retail operations in China being classified as held for sale.
(3) “Other” primarily consists of updates to accrual estimates.
As of March 29, 2026, 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.
We anticipate substantial completion of the fiscal 2025 restructuring plan and remaining store closures within fiscal year 2026. The Company estimates that it will incur approximately $150 million related to that plan during the remainder of fiscal 2026, primarily related to other lease exit costs and accelerated ROU lease asset amortization in our North America operating segment. The majority of the accrued liability balance as of March 29, 2026, relates to restructuring charges expected to be paid out by the end of fiscal year 2026.