Deferred Revenue

9 Months Ended

Jun. 29, 2025

Revenue from Contract with Customer

Deferred Revenue

Our deferred revenue primarily consists of the prepaid royalty from Nestlé, for which we have continuing performance obligations to support the Global Coffee Alliance, our unredeemed stored value card liability, and unredeemed loyalty points (“Stars”) associated with our loyalty program.

As of June 29, 2025, the current and long-term deferred revenue related to the Nestlé up-front payment was $177.0 million and $5.7 billion, respectively. As of September 29, 2024, the current and long-term deferred revenue related to the Nestlé up-front payment was $177.0 million and $5.8 billion, respectively. During each of the quarters ended June 29, 2025 and June 30, 2024, we recognized $44.1 million of prepaid royalty revenue related to Nestlé. During each of the three quarters ended June 29, 2025 and June 30, 2024, we recognized $132.3 million of prepaid royalty revenue related to Nestlé.

Changes in our deferred revenue balance related to our stored value cards and loyalty program (in millions):

Quarter Ended June 29, 2025	Total
Stored value cards and loyalty program at March 30, 2025	$	1,853.2
Revenue deferred - card activations, card reloads and Stars earned	3,764.0
Revenue recognized - card and Stars redemptions and breakage	(3,788.2)
Other(1)	15.3
Stored value cards and loyalty program at June 29, 2025(2)	$	1,844.3
Quarter Ended June 30, 2024	Total
Stored value cards and loyalty program at March 31, 2024	$	1,818.9
Revenue deferred - card activations, card reloads and Stars earned	3,833.4
Revenue recognized - card and Stars redemptions and breakage	(3,870.2)
Other(1)	(8.3)
Stored value cards and loyalty program at June 30, 2024(2)	$	1,773.8
Three Quarters Ended June 29, 2025	Total
Stored value cards and loyalty program at September 29, 2024	$	1,718.7
Revenue deferred - card activations, card reloads and Stars earned	11,675.2
Revenue recognized - card and Stars redemptions and breakage	(11,544.0)
Other(1)	(5.6)
Stored value cards and loyalty program at June 29, 2025(2)	$	1,844.3
Three Quarters Ended June 30, 2024	Total
Stored value cards and loyalty program at October 1, 2023	$	1,567.5
Revenue deferred - card activations, card reloads and Stars earned	11,977.1
Revenue recognized - card and Stars redemptions and breakage	(11,761.0)
Other(1)	(9.8)
Stored value cards and loyalty program at June 30, 2024(2)	$	1,773.8

(1)“Other” primarily consists of changes in the stored value cards and loyalty program balances resulting from foreign currency translation.

(2)As of June 29, 2025 and June 30, 2024, approximately $1.7 billion and $1.6 billion, respectively, of these amounts were current.