North AmericaWide moat

Starbucks (SBUX) — moat facet

The American coffeehouses gave up nine points of margin in two years to win their customers back, and have started to.

North America is Starbucks. The segment had revenue of $27,373.1 million in fiscal 2025, from $27,009.5 million and $26,569.6 million in the two years before 1, 74% of the company 2. It is mostly company-operated coffeehouses in the United States and Canada, plus licensed stores.

North America operating margin (%)20.7%FY202319.8%FY202411.5%FY202513.3%Q3 FY202513.6%Q3 FY2026Starbucks Form 10-K FY2025 and 10-Q Q3 fiscal 2026
Nine points given up in two years; the June 2026 quarter edged past the year before.

What is priced is the visit: a drink, often food, ordered in the store, at the drive-through or through the app. Revenue grows with comparable sales, which are transactions times ticket, and with new stores.

The last two years were a deliberate margin sacrifice. Operating income was $5,495.7 million in fiscal 2023, a 20.7% margin, $5,355.3 million in fiscal 2024 and $3,156.7 million in fiscal 2025, an 11.5% margin 3. Store operating expenses rose from $11,959.2 million to $13,973.3 million 4, from 45.0% of the segment's revenue to 51.0% 5, and the segment took $653.2 million of restructuring and impairment charges in fiscal 2025 6, mostly store closures.

The latest quarter is the first sign of the spending paying. North America revenue was $7,395.1 million in the June 2026 quarter against $6,927.0 million, and operating income $1,008.9 million against $918.7 million 7, a 13.6% margin 8, with $174.3 million of further restructuring charges inside it 9. U.S. comparable store sales rose 7.9%, on 4.2% more transactions and a 3.6% higher ticket 10.

Growth for the segment now has to come from comparable sales: the U.S. store count is roughly flat after the closures, which the page on the store estate covers. The line's history since 2023 is a company that chose to earn less per dollar in order to get customers back.

The number that decides whether that was right is the segment's operating margin once restructuring stops. A full year back above 15% would mean the investment is being repaid; stuck near 12%, with transactions rising, would mean the customers came back at a permanently lower margin.

Moat trajectory: Widening

Operating income rose to $1,008.9M in the June 2026 quarter from $918.7M, on 7.9% U.S. comparable sales.

The number that tests this moat
Reported
North America operating income, nine months
$2,555.8M in fiscal 2026 to date, on $21,569.4M of revenue

A full year back above a 15% margin would mean the labour and closure spending is being repaid.

Source: Starbucks Form 10-Q, Q3 fiscal 2026 ↗
References
  1. ReportedThe segment had revenue of $27,373.1 million in fiscal 2025, from $27,009.5 million and $26,569.6 million in the two years before , 74% of the company .
    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 calcThe segment had revenue of $27,373.1 million in fiscal 2025, from $27,009.5 million and $26,569.6 million in the two years before , 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. Moat Explorer calcOperating income was $5,495.7 million in fiscal 2023, a 20.7% margin, $5,355.3 million in fiscal 2024 and $3,156.7 million in fiscal 2025, an 11.5% margin .
    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 ↗
  4. ReportedStore operating expenses rose from $11,959.2 million to $13,973.3 million , from 45.0% of the segment's revenue to 51.0% , and the segment took $653.2 million of restructuring and impairment charges in fiscal 2025 , mostly store closures.
    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 ↗
  5. Moat Explorer calcStore operating expenses rose from $11,959.2 million to $13,973.3 million , from 45.0% of the segment's revenue to 51.0% , and the segment took $653.2 million of restructuring and impairment charges in fiscal 2025 , mostly store closures.
    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 ↗
  6. ReportedStore operating expenses rose from $11,959.2 million to $13,973.3 million , from 45.0% of the segment's revenue to 51.0% , and the segment took $653.2 million of restructuring and impairment charges in fiscal 2025 , mostly store closures.
    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. ReportedNorth America revenue was $7,395.1 million in the June 2026 quarter against $6,927.0 million, and operating income $1,008.9 million against $918.7 million , a 13.6% margin , with $174.3 million of further restructuring charges inside it .
    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. Moat Explorer calcNorth America revenue was $7,395.1 million in the June 2026 quarter against $6,927.0 million, and operating income $1,008.9 million against $918.7 million , a 13.6% margin , with $174.3 million of further restructuring charges inside it .
    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 ↗
  9. ReportedNorth America revenue was $7,395.1 million in the June 2026 quarter against $6,927.0 million, and operating income $1,008.9 million against $918.7 million , a 13.6% margin , with $174.3 million of further restructuring charges inside it .
    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 ↗
  10. ReportedU.S. comparable store sales rose 7.9%, on 4.2% more transactions and a 3.6% higher ticket .
    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 ↗
Sources
Generated September 23, 2026