Archive · Thu Oct 29 · Plain text · Event page
Starbucks Says Business Ahead of Schedule, Eyes Low End of 2028 Margin Target in Fiscal 2027
CEO Brian Niccol said the company has moved from a turnaround to a growth plan, citing five straight quarters of positive comparable sales and three of margin expansion.
Starbucks executives said on the company's fiscal fourth-quarter earnings call that sales, margins and earnings are all running ahead of schedule, with the company already expecting to reach the low end of its fiscal 2028 operating margin target in fiscal 2027. CEO Brian Niccol closed the call saying the company delivered "five consecutive quarters of positive comps" and "three consecutive quarters of margin expansion."
Ahead of schedule, with no endpoint
Asked by an analyst which elements were running faster than planned, a Starbucks executive said the analyst had listed them: "Sales margins and earnings," and that this is why the company is guiding to the low side of its fiscal 2028 target a year early. The executive said the fiscal 2028 guidance is "just a point in time on our journey" and that the company has "no expectations that that's an endpoint."
Niccol said the company is now shifting from "a turnaround plan to a growth plan." In closing remarks he said fiscal 2027 will focus on "delivering consistent comp performance" driven by operational fundamentals, with innovation in menu, digital and store assets. When sales are strong, he said, the company has "the ability to expand the bottom line."
Store growth to rebuild after pipeline reset
A Starbucks executive said net new U.S. company-operated units in fiscal 2027 are expected in the range of about 100 or a little below, because the company had to reset its development pipeline and close some stores. For fiscal 2028, the company wants to build "north of 300 or so" new units in the U.S. The executive said a new store prototype shown at investor day is now open in a couple of markets, with positive early feedback on build cost and operations. Starbucks said it has "clear line of sight" to the opportunity of 5,000 or more additional units in North America.
On international operations, an executive cited seven consecutive quarters of comparable sales growth and revenue up 5% excluding China. Regarding its Japan business, the executive said the company evaluates ownership strategy every year and would share any change "if and when the time comes."
Afternoon sales, rewards and labor
Executives said the company is working to build a stronger afternoon sales peak. Niccol said food attach has risen most in the afternoon after upgrades to the food and pastry case, and that caffeine-free refreshers are driving afternoon growth. A Starbucks executive said the matcha business is "now over $1 billion platform." Niccol said transactions are up versus a year ago in every part of the day.
On the rewards program, an executive said customers are moving up from the green to gold and reserve tiers, driven first by visit frequency, and that the company expects personalization to lift ticket size over time. On labor, Niccol said the staffing investment has allowed a three-hour morning peak to potentially stretch to four hours, and that the company is "earning our way into having additional labor to support more transactions." On supply chain, an executive said daily deliveries are in place and a replenishment schedule is expected in the next six to twelve months.
An executive said fiscal 2027 sales growth will lean more toward ticket than transactions, with pricing below the consumer price index. Niccol said holiday merchandising launches next week, including a tiramisu latte.
Bulletins
STARBUCKS: Q4 NET REVENUES $9.1B, DOWN 3.9% Y/Y; GLOBAL COMPS UP 7.2%, U.S. COMPS UP 7.7%
STARBUCKS: Q4 CONSOLIDATED OPERATING MARGIN 14%, UP 450 BASIS POINTS; EPS UP ~54% TO $0.80
STARBUCKS: FY NET REVENUES $37.9B, UP 2.1%; FY GLOBAL COMPS UP 6.2%, U.S. COMPS UP 6.5%
STARBUCKS: FY OPERATING MARGIN 11.9%, UP 200 BASIS POINTS; FY EPS UP ~27% TO $2.72
STARBUCKS: FY INTERNATIONAL COMPS UP 3.7%; FY EPS OF $2.72 EXCEEDED HIGH END OF GUIDANCE
STARBUCKS: Q4 N. AMERICA COMPANY-OPERATED COMPS UP 7.9%, DOUBLE-DIGIT COMPS IN CANADA
STARBUCKS: 90-DAY ACTIVE REWARDS MEMBERS HIT RECORD 36 MILLION, UP Y/Y AND FROM Q3
STARBUCKS: COMPLETED MORE THAN 1,700 TOTAL COFFEE HOUSE UPLIFTS IN N. AMERICA, SURPASSING GOAL
STARBUCKS: TO INTEGRATE DELIVERY INTO STARBUCKS APP IN Q2, CUSTOMERS TO EARN AND REDEEM STARS
STARBUCKS: SEES FEWER COMPANY-OPERATED OPENINGS IN FY27; EXPECTS 2,000+ UPLIFTS IN FY27
STARBUCKS: INTL NET NEW COFFEEHOUSE OPENINGS TO ACCELERATE NEARLY 50% VS FY26, ~3 PER DAY
STARBUCKS: SEES POTENTIAL FOR NEARLY 40,000 INTL COFFEEHOUSES LONG TERM VS 23,000+ TODAY
STARBUCKS: Q4 NET REVENUES $9.1B, DOWN 3.9% Y/Y; Q4 GLOBAL COMPS UP 7.2%
STARBUCKS: Q4 U.S. COMPS UP 7.7%, TRANSACTIONS UP 2.4%, TICKET UP 5.2%
STARBUCKS: Q4 N. AMERICA LICENSE REVENUES UP 2.6%; 18,176 COFFEEHOUSES, 247 CO-OP NET CLOSURES
STARBUCKS: Q4 INTL NET REVENUES $1.3B, OPERATING INCOME $261.3M; INTL CO-OP COMPS UP 0.9%
STARBUCKS: ENDS FY26 WITH 41,607 COFFEEHOUSES GLOBALLY; INTL 23,431 WITH 498 NET NEW IN Q4
STARBUCKS: Q4 CHANNEL DEV NET REVENUES DOWN 8.9% TO $494.4M; OPERATING INCOME ABOUT FLAT Y/Y
STARBUCKS: 617 NET NEW COFFEEHOUSES IN FY26, WELL AHEAD OF MOST RECENT EXPECTATIONS
STARBUCKS: Q4 CONSOLIDATED OPERATING MARGIN EXPANDED 450 BPS TO APPROX 14%
STARBUCKS: Q4 N. AMERICA OPERATING MARGIN EXPANDED 440 BPS TO APPROX 16%; G&A DOWN ~20%
STARBUCKS: Q4 MARKED THIRD STRAIGHT QUARTER OF MARGIN EXPANSION, IMPROVEMENT IN EVERY SEGMENT
STARBUCKS: SEES FY27 CONSOLIDATED OPERATING MARGIN 13.5% TO 14%, UP ~190 BPS AT MIDPOINT
STARBUCKS: FY27 INTL OPERATING MARGIN SEEN STARTING AROUND 20%; CHANNEL DEV MID TO HIGH 40S PCT
STARBUCKS: SEES FY27 EPS $3.15 TO $3.25, GROWING CLOSE TO 18% Y/Y AT THE MIDPOINT
STARBUCKS: SEES FY27 ~1,200 NET NEW COFFEEHOUSES GLOBALLY; INTL ~1,100, N. AMERICA 90-100
STARBUCKS: FY27 EPS GUIDANCE INCLUDES BENEFIT OF SLIGHTLY MORE THAN $0.10 FROM 53RD WEEK
STARBUCKS: PLANS ABOUT $1B IN FY27 SHARE REPURCHASES; QUARTERLY DIVIDEND RAISED TO $0.63/SHARE
STARBUCKS: SEES FY27 CAPEX APPROXIMATELY 5% OF NET REVENUES
STARBUCKS CFO: EXPECTS TO HIT LOW END OF 13.5%-15% FY28 MARGIN TARGET IN FY27, A YEAR EARLY
STARBUCKS: SEES FY28 US NEW UNITS NORTH OF 300; US FY27 NET NEW ~100 OR A LITTLE BELOW
STARBUCKS CEO: HAS CLEAR LINE OF SIGHT ON 5,000 NEW US UNITS, SEES MORE UPSIDE TO THAT NUMBER
STARBUCKS: SALES, MARGINS AND EARNINGS ALL AHEAD OF SCHEDULE; FY28 GUIDANCE 'A POINT IN TIME'
STARBUCKS: INTL COMP GROWTH FOR SEVENTH STRAIGHT QUARTER; EX-CHINA REVENUE UP 5%
STARBUCKS: SEES MORE THAN 2,000 COFFEEHOUSE UPLIFTS IN COMING FISCAL YEAR
STARBUCKS CEO: TRANSACTIONS UP VS YEAR AGO IN EVERY DAYPART, MORNING AND AFTERNOON
STARBUCKS: MATCHA BUSINESS NOW OVER A BILLION DOLLAR PLATFORM AND GROWING YEAR OVER YEAR
STARBUCKS: SEES MORNING PEAK STRETCHING FROM 3 HOURS TO 4 HOURS; AFTERNOON PEAK AT 1 HOUR NOW
STARBUCKS CEO: FIVE CONSECUTIVE QUARTERS OF POSITIVE COMPS, THREE OF MARGIN EXPANSION
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Transcript
Good afternoon, and welcome to Starbucks' fourth.
fourth quarter and full fiscal year 2026 earnings call. All lines have been placed on mute to prevent any background noise. I will now turn the call over.
to the next one.
Good afternoon, and welcome to Starbucks' fourth.
fourth quarter and full fiscal year 2026 earnings call. All lines have been placed on mute to prevent any background noise. I will now turn the call over.
over to Catherine Park, Vice President of Investor Relations. Ms. Park, you may now begin your conference. Good afternoon, and thank you for joining us today.
today to discuss Starbucks' fourth quarter fiscal year 2026 results. Today's discussion will be led by Brian Nicol, Chairman and Chief Executive Officer, and Kathy Smith.
Smith, Executive Vice President and Chief Financial Officer. This conference call will include forward-looking statements which are subject to various risks and uncertainties that could cause.
to Catherine Park, Vice President of Investor Relations. Ms. Park, you may now begin your conference. Good afternoon, and thank you for joining us today.
today to discuss Starbucks' fourth quarter fiscal year 2026 results. Today's discussion will be led by Brian Nicol, Chairman and Chief Executive Officer, and Kathy Smith.
Smith, Executive Vice President and Chief Financial Officer. This conference call will include forward-looking statements which are subject to various risks and uncertainties that could cause.
IA to discuss Starbucks' fourth quarter fiscal year 2026 results. Today's discussion will be led by Brian Nicol, Chairman and Chief Executive Officer, and Kathy Smith.
Smith, Executive Vice President and Chief Financial Officer. This conference call will include forward-looking statements which are subject to various risks and uncertainties that could cause.
actual results to differ from these statements. Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factors discussed in our filings.
actual results to differ from these statements. Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factors discussed in our filings.
filings with the SEC. Starbucks assumes no obligation to update any of these forward-looking statements or information. Certain metrics referenced on today's call are non-GAF.
Executive Vice President, and Chief Financial Officer. This conference call will include forward-looking statements which are subject to various risks and uncertainties that could cause.
actual results to differ from these statements. Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factors discussed in our filings.
filings with the SEC. Starbucks assumes no obligation to update any of these forward-looking statements or information. Certain metrics referenced on today's call are non-GAF.
actual results to differ from these statements. Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factors discussed in our filings.
filings with the SEC. Starbucks assumes no obligation to update any of these forward-looking statements or information. Certain metrics referenced on today's call are non-GAAP and measured in constant currency. Please refer to the earnings release and our website at investor.starbucks.com to find reconciliations of these non-GAAP measures to the corresponding GAAP measures.
measured in constant currency. Please refer to the earnings release and our website at investor.starbucks.com to find reconciliations of these non-GAP measures to the corresponding GAAP measure.
measures and supplemental financial information. This conference call is being webcast and an archive will be available on our website through Friday, December 11, 2026.
And for your calendar planning purposes, please note that our first quarter fiscal 27 earnings conference call is tentatively scheduled for Wednesday, January 27, 2026.
and measured in constant currency. Please refer to the earnings release on our website at investor.starbucks.com to find reconciliations of these non-GAP measures to the corresponding GAAP measures.
measures and supplemental financial information. This conference call is being webcast and an archive will be available on our website through Friday, December 11, 2026.
And for your calendar planning purposes, please note that our first quarter fiscal 27 earnings conference call is tentatively scheduled for Wednesday, January 27, 2026.
2027. I'll now turn the call over to Brian. Good afternoon, and thanks for joining. We close fiscal 2026 with another
another terrific quarter and a much stronger Starbucks than we had a year ago. Back to Starbucks started as a turnaround plan, and now Back to Starbucks is our growth plan.
And for calendar planning purposes, please note that our first quarter fiscal 27 earnings conference call is tentatively scheduled for Wednesday, January 27, 2020.
2027. I'll now turn the call over to Brian. Good afternoon, and thanks for joining. We close fiscal 2026 with another
another terrific quarter and a much stronger Starbucks than we had a year ago. Back to Starbucks started as a turnaround plan, and now Back to Starbucks is our growth plan.
Q4, our net revenues were $9.1 billion, down 3.9% year over year, reflecting the mid-year transition of our China business to a licensed model.
four our net revenues were nine point one billion dollars
down three point nine percent year over year reflecting the mid year transition of our china
Seven. I'll now turn the call over to Brian. Good afternoon, and thanks for joining. We closed fiscal 2026 with another
another terrific quarter and a much stronger Starbucks than we had a year ago. Back to Starbucks started as a turnaround plan, and now Back to Starbucks is our growth plan.
Q4, our net revenues were $9.1 billion, down 3.9% year over year, reflecting the mid-year transition of our China business to a licensed model.
business to a licensed model
i'll now turn the call over to brian
Global comps were up 7.2%, marking our fifth consecutive quarter of comp growth, and U.S. comps were up 7.7%. Consolidated operating markets.
good afternoon and thanks for joining
we closed fiscal two thousand twenty six with another terrific quarter
and a much stronger starbucks than we had a year ago
back to starbucks started as a turnaround plan
margin expanded four hundred fifty basis points year over year to fourteen percent, our third consecutive quarter of margin growth, and earnings per share grew approximately fifty four percent
and now back to starbucks is our growth plan
in q four our net revenues were nine point one billion dollars
down three point nine percent year over year reflecting the mid year
to 80 cents. For the full year, consolidated net revenues grew to $37.9 billion, up 2.1%. Global company operations.
transition of our china business to a licensed model
global comps were up seven point two percent marking our fifth consecutive
quarter of comp growth and u s comps were up seven point seven percent
operated comps were up 6.2 percent, with U.S. comps up 6.5 percent and international comps of 3.7 percent. Consolidated operating
consolidated operating margin expanded four fifty basis points year over year
to fourteen percent
third consecutive quarter of margin growth
margin expanded four hundred fifty basis points year over year to fourteen percent, our third consecutive quarter of margin growth, and earnings per share grew approximately fifty four percent.
to 80 cents. For the full year, consolidated net revenues grew to $37.9 billion, up 2.1%. Global company operations.
operated comps were up 6.2 percent, with U.S. comps up 6.5 percent and international comps of 3.7 percent. Consolidated operating
and earnings per share grew approximately fifty four percent to zero eight zero dollars
operating to 80 cents. For the full year, consolidated net revenues grew to $37.9 billion, up 2.1 percent. Global company operating.
operated comps were up 6.2 percent, with U.S. comps up 6.5 percent and international comps of 3.7 percent. Consolidated operating
operating margin expanded 200 basis points to 11.9 percent, and earnings per share grew approximately 27 percent to $2.72, exceeding the high.
for the full year consolidated net revenues grew thirty seven
point nine billion dollars up two point one percent
aim margin expanded 200 basis points to 11.9 percent, and earnings per share grew approximately 27 percent to $2.72. Exceeding the high aim.
global company operated comps were up six point two percent
end of our guidance. These results reflect a relentless focus on executing our back to Starbucks strategy. Two years ago, we committed to getting back to Starbucks and delivering our brand products.
with u s comps up six point five percent
and international comps up three point seven percent
consolidated operating margin expanded four fifty basis points year over year
to fourteen percent our third consecutive quarter of margin growth
promise more consistently. We put the customer at the center of every decision. We gave our partners more support. We got clear on what matters. We restored the third place and we put
and earnings per share grew approximately fifty four percent to zero eight zero dollars
for the full year consolidated net revenues grew thirty
seven point nine billion dollars up two point one percent
end of our guidance. These results reflect a relentless focus on executing our back to Starbucks strategy. Two years ago, we committed to getting back to Starbucks and delivering our brand promise.
promise more consistently. We put the customer at the center of every decision. We gave our partners more support. We got clear on what matters. We restored the third place and we put Starbucks back on its front foot. Our plan is working. More customers are visiting us because the Starbucks experience is better. Our coffee houses are coffeehouses again.
global company operated comps were up six point two percent
with u s comps up six point five percent
Starbucks back on its front foot. Our plan is working. More customers are visiting us because the Starbucks experience is better. Our coffee houses are coffeehouses again.
and international comps up three point seven percent
consolidated operating expenses were zero eight zero dollars
Our partners are creating more moments of connection. Our brand is more visible, relevant, and loved. Our licensed and channel development businesses are extending our reach to more places.
for the full year consolidated net revenues grew thirty
seven point nine billion dollars up two point one percent
global company operated comps were up six point two percent
places and occasions, and more of our sales growth is translating into earnings. For more than 50 years, we've grown by delivering on the Starbucks brand promise. Exceptional.
with u s comps up six point five percent
and international comps up three point seven percent
consolidated operating margin expanded two hundred basis
points to eleven point nine percent and earnings per share grew approximately
exceptional coffee, human connection, and a great customer experience in a true third place. It comes down to the fundamentals. When we execute them with excellence, we grow.
twenty seven percent to two point seven two dollars
exceeding the high end margin expanded two hundred basis points to eleven point nine percent
and earnings per share grew approximately twenty seven percent to two point
seven two dollars exceeding the high end of our guidance
and occasions. And more of our sales growth is translating into earnings. For more than 50 years, we've grown by delivering on the Starbucks brand promise. Exceptional.
exceptional coffee, human connection, and a great customer experience in a true third place. It comes down to the fundamentals. When we execute them with excellence, we grow.
what we saw in fiscal 26, and it's what gives me confidence in the durability of our performance for the future. We had a great quarter and a great year, and it put us ahead of schedule on our.
these results reflect a relentless focus on executing our back to starbucks strategy
fiscal 26, and it's what gives me confidence in the durability of our performance for the future. We had a great quarter and a great year, and it put us ahead of schedule on our fiscal year.
two years ago we committed to getting back to starbucks and delivering our brand promise more consistently
fiscal 28 framework. And as we focus on growth in fiscal 27, we have even more opportunity ahead. Let me walk you through some of the highlights for the quarter. Starting in North America.
we put the customer at the center of every decision we gave our partners more support
got clear on what matters we restored the third place and we put the end of our guidance
these results reflect our relentless focus on executing our back to starbucks strategy
North America, company-operated comps grew 7.9%, driven by double-digit comps in Canada and strong comps in the U.S. That momentum is being driven by great.
two years ago we committed to getting back to starbucks and delivering our brand promise more consistent
consistently
we put the customer at the center of every decision we gave our partners more support
execution in our coffee houses, a strong brand, and a healthier portfolio. First, our coffee houses are coffeehouses again. We're operating with greater discipline and consistency.
got clear on what matters we restored the third place and we put starbucks back
on its front foot
our plan is working more customers are visiting us because the starbucks
experience is better
consistency, anchored by green apron service. In the quarter, more than 80% of our North America company-operated coffee houses delivered positive comps, up from
our coffee houses are coffee houses again starbucks back on its front foot
our plan is working more customers are visiting us
because the starbucks experience is better
our coffee houses are coffee houses again our partners are creating more moments
less than 50% a year ago. Average service times remained on target, and we continue to refine SmartQ and our operating routines to improve throughput and consistency across.
of connection our brand is more visible relevant and loved
our licensed and channel development businesses are extending our reach
to more places and occasions and more of our sales growth is translating into earnings
currency anchored by green apron service. In the quarter, more than 80% of our North America company-operated coffee houses delivered positive comps, up from
less than 50% a year ago. Average service times remained on target, and we continue to refine SmartQ and our operating routines to improve throughput and consistency across.
across all access points. Inventory availability is at an all-time high, with daily delivery now reaching close to 90% of our North America company-operated coffee houses, and our new core.
for more than fifty years we've grown by delivering on the starbucks brand promise
exceptional coffee
cordancy anchored by Green Apron Service. In the quarter, more than 80% of our North America company-operated coffee houses delivered positive comps, up from less.
less than 50% a year ago. Average service times remained on target, and we continue to refine SmartQ and our operating routines to improve throughput and consistency across.
across all access points. Inventory availability is at an all-time high, with daily delivery now reaching close to 90% of our North America company-operated coffee houses, and our new core.
human connection and a great customer experience in a true third place
across all access points. Inventory availability is at an all-time high, with daily delivery now reaching close to 90% of our North America company-operated coffee houses, and our new core.
quarterly coffee house incentive program is driving greater discipline around staffing and product waste while keeping teams focused on great customer service. Our leadership pipeline.
it comes down to the fundamentals when we execute them with excellence we grow
that's in occasions and more of our sales growth is translating into earnings
for more than fifty years we've grown by delivering on the starbucks brand promise
exceptional coffee
pipeline is also getting stronger. We now have more than 3,000 coffee house coaches enrolled across our U.S. company-operated business, and they've all been hired from within the company. These positions
human connection and a great customer experience in a true third place
cost all access points. Inventory availability is at an all-time high, with daily delivery now reaching close to 90% of our North America company-operated coffee houses, and our new core.
quarterly coffee house incentive program is driving greater discipline around staffing and product waste while keeping teams focused on great customer service. Our leadership pipeline is also getting stronger. We now have more than 3,000 coffee house coaches enrolled across our U.S. company-operated business, and they've all been hired from within the company. These positions
it comes down to the fundamentals when we execute them with excellence we grow
that's what we saw in fiscal twenty twenty six
early coffeehouse incentive program is driving greater discipline around staffing and product waste while keeping teams focused on great customer service. Our leadership pipeline.
pipeline is also getting stronger. We now have more than 3,000 coffee house coaches enrolled across our U.S. company-operated business, and they've all been hired from within the company. These positions
improve leadership stability and execution, give our partners new pathways to grow, and help build the next generation of leaders to support our future growth.
it's what gives me confidence in the durability of our performance for the future
improve leadership stability and execution, give our partners new pathways to grow, and help build the next generation of leaders to support our future growth.
we had a great quarter and a great year and it put us ahead of schedule on our
so we saw in fiscal twenty six
and it's what gives me confidence in the durability of our performance for the future
Second, customers are responding to a stronger, more relevant brand and menu. Starbucks brand affinity is at near record levels as our menu innovation, marketing,
we had a great quarter and a great year and it
us ahead of schedule on our fiscal twenty twenty eight framework and as we focus
on growth in fiscal twenty twenty seven we have even more opportunity ahead
me walk you through some of the highlights for the quarter
and merchandise continue to create moments that drive culture and bring people into our coffee houses. Espresso, refreshers, matcha, and our artisanal bait case.
starting in north america company operated comps
grew seven point nine percent driven by double digit comps in canada
and strong comps in the u s
showed continued strength in the quarter. Our unicorn launch in August united 34 markets for our first global coffee house activation and delivered a record sales weekend.
that momentum is being driven by great execution in our coffee houses
a strong brand and a healthier portfolio
first
our coffeehouses are coffeehouses again we're operating with greater discipline and consistency
anchored by green apron service
weekend and merchandise continue to create moments that drive culture and bring people into our coffee houses. Espresso, refreshers, matcha, and our artisanal bait case.
showed continued strength in the quarter. Our unicorn launch in August united 34 markets for our first global coffee house activation and delivered a record sales weekend.
weekend for our North America company-operated business. We followed that with our strongest North America fall launch day, and our global peanuts collaboration demonstrated the power of great merch, delivering.
in the quarter more than eighty percent of our north american
for our North America company-operated business. We followed that with our strongest North America fall launch day, and our global peanuts collaboration demonstrated the power of great merch delivering.
company operated coffee houses delivered positive comps up from less than fifty percent a year
ago
average service times remained on target and we continue to refine smartq
robust sales days around the world. Our U.S. company-operated comp growth remained balanced with contribution from both ticket and transactions. 90-day active Starbucks rewards.
and our operating routines to improve throughput and consistency across
anchored by green apron service
in the quarter more than eighty percent of our north america company operated coffee
rewards members reached a record 36 million, growing both year over year and sequentially from Q3. And sales growth remained broad-based across income levels, generations,
houses delivered positive comps up from less than fifty percent a year ago
average service times remained on target and we continue to refine smart
queue and our operating routines to improve throughput
and consistency across all access points
generations, and day parts. Together, these results tell us the Starbucks experience is resonating. Our coffee houses feel more like Starbucks too. As of fiscal year,
inventory availability is at an all time high with daily delivery now reaching close to ninety percent
our north america company operated coffee houses and our new core competency
anchored by green apron service
year end, we surpassed our goal by completing more than 1,700 total uplifts across North America, bringing back warmth, comfortable seating, and the third place to our cafes.
in the quarter more than eighty percent of our north america company operated
coffeehouses delivered positive comps up from less than fifty percent a year ago
average service times remained on target and we continue to refine smart
cafes. Uplifted coffee houses continue to show transaction lift across access points, day parts, formats and loyalty groups, giving us confidence to continue our pace of work.
queue and our operating routines to improve throughput
and consistency across all access points
inventory availability is at an all time high with daily delivery now reaching
work. Third, we're building a healthier coffee house portfolio. In North America, we closed coffee houses that didn't show a path to delivering the experience or financial performance we expected.
to ninety percent of our north america company operated coffee houses
and our new core products across all access points
inventory availability is in an all time high with daily
delivery now reaching close to ninety percent of our north america company operated coffee houses
expect. Uplifted coffeehouses continue to show transaction lift across access points, day parts, formats and loyalty groups, giving us confidence to continue our pace of work.
work. Third, we're building a healthier coffee house portfolio. In North America, we closed coffee houses that didn't show a path to delivering the experience or financial performance we expected.
expect. We also unveiled our smaller format coffeehouses in multiple markets, taking the concept we showcased at Investor Day from prototype to reality in less than a year.
and our new quarterly coffee house incentive program is driving greater discipline
around staffing and product waste while keeping teams focused on great customer service
We also unveiled our smaller format coffeehouses in multiple markets, taking the concept we showcased at Investor Day from prototype to reality in less than a year.
our leadership pipeline is also getting stronger
Customer and partner feedback has been terrific, and we'll learn from these early openings to help shape how we build for the future. International is an important growth engine for Starbucks.
we now have more than three thousand coffeehouse coaches enrolled across our u s company operated business
and they've all been hired from within the company
these positions across all access points
inventory availability is at an all time high with daily delivery now reaching
diversified portfolio remained a key strength in Q4, with comm sales growth across the majority of our licensed and company-operated markets, led by the UK, Philippines, and Mexico.
close to ninety percent of our north america company operated coffee houses
and our new quarterly coffee house incentive program is driving greater discipline
around staffing and product waste while keeping teams focused on great customer service
Mexico. Our increasingly licensed international model, which combines the power of Starbucks with the deep market expertise of local operators, underpinned our Unicorn.
our leadership pipeline is also getting stronger
we now have more than three thousand coffeehouse coaches enrolled across our u company operated business
and they've all been hired from within the company
growth. China exceeded its goals in fiscal 2026. We surpassed 6,000 coffee houses in Asia Pacific, and we grew to more than 1,900 in Asia.
these positions are really coffeehouse incentive program is driving greater discipline
around staffing and product waste while keeping teams focused on great
diversified portfolio remained a key strength in Q4 with comm sales growth across the majority of our licensed and company-operated markets, led by the UK, Philippines, and Mexico.
customer service
Mexico. Our increasingly licensed international model, which combines the power of Starbucks with the deep market expertise of local operators, underpinned our unit growth. China exceeded its goals in fiscal 2026, we surpassed 6,000 coffee houses in Asia-Pacific, and we grew to more than 1,900 in
our leadership pipeline is also getting stronger
Latin America and the Caribbean, bringing Starbucks' premium coffee experience to nearly 500 new communities. Our progress through fiscal 26 reinforces what we know.
we now have more than three thousand coffee house coaches enroll across
our u s company operated business and they've all been hired from within the company
these positions improve leadership stability and execution
give our partners new pathways to grow
We know what makes Starbucks special. We know back to Starbucks drives growth, and we know how to win. For fiscal 27, we will raise the bar. We enter the new fiscal year.
help build the next generation of leaders to support our future growth
oath. China exceeded its goals in fiscal 2026. We surpassed 6,000 coffee houses in Asia Pacific, and we grew to more than 1,900 in Asia.
Latin America and the Caribbean, bringing Starbucks' premium coffee experience to nearly 500 new communities. Our progress through fiscal 26 reinforces what we know.
We know what makes Starbucks special. We know back to Starbucks drives growth, and we know how to win. For fiscal 27, we will raise the bar. We enter the new fiscal year.
second improve leadership stability and execution
give our partners new pathways to grow
help build the next generation of leaders to support our future growth
on stronger operational footing and with momentum. At a high level for fiscal 27, we expect North America comps of approximately 4 percent, consolidated operating margin of 3 percent.
second customers are responding to
a stronger more relevant brand and menu
starbucks brand affinity is at near record
13.5% to 14%, and EPS of $3.15 to $3.25. To deliver these results, five priorities will drive our work.
levels as our menu innovation marketing and merchandise continue to create moments
drive culture and bring people into our coffee houses
espresso refreshers matcha and our artisanal bake case
showed continued strength in the quarter
First, win on the fundamentals in the coffee house through green apron service. That means building capacity to deliver exceptional green apron service to more customers. We see room to
our unicorn launch in august united thirty four markets for our first
global coffeehouse activation and delivered a record sales weekend and merchandise
continue to create moments that drive culture and bring people into our coffee houses
grow transactions across everyday part in our coffee houses by extending our peak in the morning and creating a peak in the afternoon. To do this, we'll keep making SmartQ smarter, we'll improve production.
espresso refreshers matcha and our artisanal bake case
showed continued strength in the quarter
our unicorn launch in august united thirty four markets
production flow behind the bar to unlock throughput while maintaining great craft. We'll also begin Mestrayna 3 Espresso machine test and exploring next-generation drive-through concepts to improve speed.
for our first global coffeehouse activation and delivered a record sales weekend for our north america
company operated business
we followed that with our strongest north america fall launch day
and our global peanuts collaboration demonstrated the power of great merch
speed and connection. It means greater operating precision. We'll keep refining how we forecast and deploy labor and how we manage inventory and product waste, and we'll raise growth.
delivering for our north america company operated business
we followed that with our strongest north america fall launch day
growth transactions across everyday part in our coffee houses by extending our peak in the morning and creating a peak in the afternoon. To do this, we'll keep making SmartQ smarter, we'll improve production.
production flow behind the bar to unlock throughput while maintaining great craft. We'll also begin Mestrayna 3 Espresso machine test and exploring next-generation drive-through concepts to improve speed.
speed and connection. It means greater operating precision. We'll keep refining how we forecast and deploy labor and how we manage inventory and product waste, and we'll raise growth.
and our global peanuts collaboration demonstrated the power of great merch
delivering robust sales days around the world
growth performance expectations while keeping our leaders focused on operating behaviors that create a meaningful third place full of community and connection and drive consistent results.
our u s company operated comp growth remained balanced
with contribution from both ticket and transactions ninety day active
starbucks rewards members reached a record thirty six million
growing both year over year and sequentially from q3
results. And it means continued investment in our partners. Fiscal 27 will be a major tech modernization year. We'll roll out new staffing and scheduling and point of sale.
and sales growth remained broad based
across income levels generations and dayparts
together these results tell us the starbucks experience is resonating
performance expectations while keeping our leaders focused on operating behaviors that create a meaningful third place full of community and connection and drive consistent results.
results. And it means continued investment in our partners. Fiscal 27 will be a major tech modernization year. We'll roll out new staffing and scheduling and point of sale systems through the year that simplify tasks, improve speed of service, and allow partners to spend more time engaging with customers. We're also transforming our supply chain with testing.
our coffee houses feel more like starbucks too as of
fiscal year end we surpassed our goal by completing more than one thousand seven hundred total uplifts
test systems through the year that simplify tasks, improve speed of service, and allow partners to spend more time engaging with customers. We're also transforming our supply chain with test systems.
across north america bringing back warmth comfortable seating and the third place to our
cafes
testing underway to improve demand forecasting, ordering accuracy, and replenishment cycles. As this work scales, it will drive greater availability, less product waste, and less work for our.
up lifted coffee houses continue to show transaction lift across access points
day parts formats and loyalty groups
giving us confidence to continue our pace of work
third
we're building a healthier coffee house portfolio
our partners over time. Second, make our brand and menu even more relevant and loved. We'll drive mass reach through effective marketing to bring in new and lapsed customers while continuing.
in north america we closed coffee houses that didn't show a path to delivering the experience or financial
performance we expect
up lifted coffee houses continue to show transaction lift across access points
continuing underway to improve demand forecasting, ordering accuracy, and replenishment cycles. As this work scales, it will drive greater availability, less product waste, and less work for our.
our partners over time. Second, make our brand and menu even more relevant and loved. We'll drive mass reach through effective marketing to bring in new and lapsed customers while continuing.
to nurture our Starbucks Rewards members. We'll keep winning the morning and earning the afternoon with planful innovation, building scalable platforms that can grow with us.
day parts formats and loyalty groups
giving us confidence to continue our pace of work
third
to nurture our Starbucks rewards members. We'll keep winning the morning and earning the afternoon with planful innovation, building scalable platforms that can grow with us.
we're building a healthier coffee house portfolio
in north america we closed coffeehouses that didn't show a path
include functional and zero-sugar beverages, new bakery items, more portable options, and protein-forward choices that meet more customer needs and wants throughout the day.
delivering the experience or financial performance we expect
we also unveiled our smaller format coffee houses in multiple markets
taking the concept we showcased at investor day from prototype to reality
in less than a year
thanks
great innovation strengthens the ritual and gives customers more reasons to choose Starbucks. In fiscal 27, we'll bring beverages, food, and merchandise together.
we also unveiled our smaller format coffee houses in multiple markets
taking the concept we showcased at investor day from prototype to reality
in less than a year
include functional and zero-sugar beverages, new bakery items, more portable options, and protein-forward choices that meet more customer needs and wants throughout the day.
great innovation strengthens the ritual and gives customers more reasons to choose Starbucks. In fiscal 27, we'll bring beverages, food, and merchandise together in collections that create more compelling customer moments and drive greater attach. Merchandise remains a small part of our business today, but Q4 showed its potential. Both our pink,
customer and partner feedback has been terrific and we'll learn from these early openings to help shape how we build
for the future
include functional and zero-sugar beverages, new bakery items, more portable options, and protein-forward choices that meet more customer needs and wants throughout the day.
great innovation strengthens the ritual and gives customers more reasons to choose Starbucks. In fiscal 27, we'll bring beverages, food, and merchandise together.
collections that create more compelling customer moments and drive greater attach. Merchandise remains a small part of our business today, but Q4 showed its potential. Both our pink,
international is an important growth engine for starbucks
our diversified portfolio remained a key strength in q4
and collections that create more compelling customer moments and drive greater attach. Merchandise remains a small part of our business today, but Q4 showed its potential. Both are pink.
and peanuts launches contributed to ticket growth in the quarter. We'll apply that same integrated approach to upcoming brand launches like Holiday. We've learned a lot about what it takes to
execute innovation well. In fiscal twenty seven, we'll put even greater focus on operational readiness with thoughtful builds, better training and the right staffing to help our partners deliver with excellence.
excellence. Third, build the right experiences and capabilities for the future. Starbucks has built an exceptional digital experience in one of the world's most engaged customer communities. In the year at
ahead, we'll make our industry-leading Starbucks app even more intuitive for customers to order, customize, and have frictionless access wherever they are. We'll update the menu experiences.
and build more personalized touch points through relevant content and recommendations tailored to customer tastes and preferences. In Q2, we'll begin to integrate delivery directly into the Starbucks.
build more personalized touch points through relevant content and recommendations tailored to
customer tastes and preferences
Starbucks app and will extend the opportunity for customers to begin earning and redeeming stars on delivery orders. We are working on opportunities for AI to make search and discovery in the app more seamless.
in q2 we'll begin to integrate delivery directly into the starbucks app
we'll extend the opportunity for customers to begin earning and redeeming stars on delivery orders
we are working on opportunities for ai to make search and discovery in the app more seamless
with the potential to support conversational and agentic ordering over time. And we're exploring ways to make it easier for customers to place mobile orders from their cars and through emerging AI.
with the potential to support conversational and agentic ordering over time
and we're exploring ways to make it easier for customers to place mobile orders from their cars and through
app and will extend the opportunity for customers to begin earning and redeeming stars on delivery orders. We are working on opportunities for AI to make search and discovery in the app more seamless.
with the potential to support conversational and agentic ordering over time. And we're exploring ways to make it easier for customers to place mobile orders from their cars and through emerging AI.
AI platforms. We're also working to reimagine the drive-thru experience to make it faster, more convenient, and more personal. Roughly half of our customers use the drive-thru, making it a significant
emerging ai app and will extend the opportunity for customers
to begin earning and redeeming stars on delivery orders
we are working on opportunities for ai to make search and discovery in the app more seamless
SigI platforms. We're also working to reimagine the drive-thru experience to make it faster, more convenient, and more personal. Roughly half of our customers use the drive-thru, making it a SigII platform.
with the potential to support conversational and agentic ordering over time
and we're exploring ways to make it easier for customers to place mobile orders from their cars
with the potential to support conversational and agentic ordering over time. And we're exploring ways to make it easier for customers to place mobile orders from their cars and through emerging AI.
AI platforms. We're also working to reimagine the drive-thru experience to make it faster, more convenient, and more personal. Roughly half of our customers use the drive-thru, making it a significant opportunity. In fiscal 27, we'll begin testing background AI models in the drive-thru that help our baristas input orders more accurately and efficiently.
and through emerging ai platforms
significant opportunity. In fiscal 27, we'll begin testing background AI models in the drive-through that help our baristas input orders more accurately and efficiently.
also working to reimagine the drive thru experience to make it faster more convenient and more personal
roughly half of our customers use the drive thru making it a significant high platforms
efficiently as they interact with customers. The intent is to help our partners focus on connecting with customers while improving both throughput and speed of service. We're also exploring experiences that.
we're also working to reimagine the drive thru experience to
make it faster more convenient and more personal
roughly half of our customers use the drive thru making it a
difference with the potential to support conversational and agentic ordering over time
recognize participating customers as they arrive, present personalized digital menus, and make payment more effortless. We're early in this work and will test, learn, and scale what we're doing.
and we're exploring ways to make it easier for customers to place mobile orders from their cars and through
emerging ai platforms
also working to reimagine the drive thru experience to make it faster more convenient and more personal
scale what works. Fourth, grow with discipline in the U.S. and around the world. We see significant long-term white space in North America with the opportunity to build around 5,000.
roughly half of our customers use the drive thru making it a significant opportunity
in fiscal twenty seven we'll begin testing background ai models in the drive thru
5,000 additional coffeehouses over time, we're focused on making disciplined decisions today that set us up for stronger, more durable growth in the future. Rebuilding our development pipeline.
that help our baristas input orders more accurately and efficiently with significant opportunity
in fiscal twenty seven we'll begin testing background ai models in the drive
that help our baristas input orders more accurately and efficiently
pipeline will take time, which means we expect fewer company-operated openings in fiscal 27 and a stronger, healthier pipeline beyond that. As we do this work, we'll continue investing.
as they interact with customers the intent is to help our partners
focus on connecting with customers
while improving both throughput and speed of service we're also exploring experiences that recognize
participating customers as they arrive
present personalized digital menus
in our uplift program. We expect to complete more than 2,000 uplifts in fiscal 27. We'll also work to grow our North America license business, bringing the Starbucks experience to even more accountable.
and make payment more effortless
we're early in this work
and we'll test learn and scale what works
fourth
grow with discipline in the us and around the world
customers. We expect International to lead our global unit growth this fiscal year, with net new coffeehouse openings accelerating by nearly fifty percent compared to fiscal twenty six.
we see significant long term white space in north america
with the opportunity to build around five thousand additional coffee houses over time
will take time, which means we expect fewer company-operated openings in fiscal 27 and a stronger, healthier pipeline beyond that. As we do this work, we'll continue investing.
in our uplift program. We expect to complete more than 2,000 uplifts in fiscal 27. We'll also work to grow our North America license business, bringing the Starbucks experience to even more accountable.
customers. We expect International to lead our global unit growth this fiscal year, with net new coffeehouse openings accelerating by nearly fifty percent compared to fiscal twenty six.
we're focused on making disciplined decisions today that set us up for stronger
more durable growth in the future
That translates to about three new coffee houses a day. Beyond fiscal 27, we see substantial room to grow our footprint outside North America from more than 23,000 international.
rebuilding our development pipeline will take time which means we expect fewer company
in our uplift program. We expect to complete more than 2,000 uplifts in fiscal 27. We'll also work to grow our North America license business, bringing the Starbucks experience to even more accountable.
customers. We expect International to lead our global unit growth this fiscal year, with net new coffeehouse openings accelerating by nearly 50% compared to fiscal 26. That translates to about three new coffee houses a day. Beyond fiscal 27, we see substantial room to grow our footprint outside North America from more than 23,000 international.
operated openings in fiscal twenty twenty seven and a stronger healthier pipeline beyond that
as we do this work we'll continue investing in our uplift program
international coffee houses today to nearly 40,000 over the long term. That includes the potential to double our presence in China and India with meaningful growth across other regions.
we expect to complete more than two thousand uplifts in fiscal twenty twenty seven
we'll also work to grow our north america license business bringing the starbucks
experience to even more customers
regions. Fifth, create more opportunity for partners. Our hourly partner turnover rate remains well below the industry average, driven by what third-party studies confirm.
we expect international to lead our global unit growth this fiscal year
with net new coffeehouse openings accelerating by nearly
fifty percent compared to fiscal twenty twenty six it will take time which means we expect fewer company
are industry-leading pay and benefits, as well as improved staffing and flexible schedules that give partners the hours they want to work. In fiscal twenty-seven, we'll expand coffeehouse coaches to more.
operated openings in fiscal twenty twenty seven and a stronger healthier pipeline beyond that
as we do this work we'll continue investing in our uplift program
we expect to complete more than two thousand uplifts in fiscal twenty twenty seven
we'll also work to grow our north america license business bringing the starbucks experience to
more North American coffee houses, giving experienced partners more opportunities for advancement while building a pipeline of talent to support future coffeehouse growth. We'll pair that with more training.
even more customers
we expect international to lead our global unit growth this fiscal year
with net new coffeehouse openings accelerating by nearly fifty percent
training and development opportunities and better tools for leaders to build and manage strong teams. Taken together, these priorities give us clear direction and confidence in the path.
to fiscal twenty twenty six that translates to about three new coffeehouses a day
beyond fiscal twenty seven we see substantial room to grow our footprint outside north
from more than twenty three thousand international in our uplift program
path ahead. Back to Starbucks started as a turnaround plan and it put us back in a position of strength. Today, Back to Starbucks is our growth plan. To conclude,
we expect to complete more than two thousand uplifts in fiscal twenty seven
we'll also work to grow our north america license business
bringing the starbucks experience to even more customers
we expect international to lead our global unit growth this fiscal year
fiscal 26 was a tremendous year of progress and results, and it gives us confidence in our trajectory. We're ahead of schedule in relation to our fiscal 28 framework, and we see a clear path to consider.
with net new coffeehouse openings accelerating by nearly fifty percent compared to
fiscal twenty twenty six that translates to about three new coffeehouses a day
beyond fiscal twenty seven we see substantial room to grow our footprint outside north
consistent comp growth and stronger earnings in fiscal 27. To our partners around the world, thank you. The progress we've made reflects your focus, ownership, and belief in our brand.
from more than twenty three thousand international coffee houses today
to nearly forty thousand over the long term
that includes the potential to double our presence in china and india
with meaningful growth across other regions
brand promise. I'm confident we'll keep building on what is working, raising the bar, and bringing the best of Starbucks to even more customers around the world. With that, I'll turn it over to Kathy.
fifth create more opportunity for partners
our hourly partner turnover rate remains well below the industry average
driven by what third party studies confirm our industry leading pay and benefits
Kathy to take you through our results in more detail and our fiscal 27 guidance. Thank you, Brian, and thank you all for joining us today. In fiscal 2026,
as well as improved staffing and flexible schedules that give partners the hours they want to work
and in fiscal twenty seven we'll expand coffee house coaches to more north american coffee houses
giving experienced partners more opportunities for advancement
2026, we strengthened the fundamentals of our business, and that work is increasingly showing up in our financial performance. I'd like to also thank our partners whose focus and dedication.
while building a pipeline of talent to support future coffee house growth
we'll pair that with more training and development opportunities
and better tools for leaders to build and manage strong teams
dedication were critical to delivering our back-to-Starbucks priorities. Now, to our fourth quarter results and outlook. Fourth quarter consolidated net revenue.
taken together these priorities give us clear direction and confidence in the path
ahead
back to starbucks started as a turnaround plan and it put us back in a position of strength
today
back to starbucks is our growth plan
to conclude
revenues were $9.1 billion, down 3.9% year over year, primarily reflecting Starbucks China's transition from company-operated to a licensed joint.
fiscal twenty six was a tremendous year of progress and results
and it gives us confidence in our trajectory
we're ahead of schedule in relation to our fiscal twenty twenty eight framework
and we see a clear path to consistent comp growth and stronger earnings in fiscal twenty twenty seven
joint venture. Global comps grew 7.2%, our fifth consecutive positive quarter. North America net revenues grew 6.3%.
to our partners around the world thank you
the progress we've made reflects your focus ownership and belief in our brand promise
i'm confident we'll keep building on what is working
to $7.3 billion, led by strong company-operated comps in both the U.S. and Canada. U.S. comps grew 7.7% with a
raising the bar and bringing the best of starbucks to even more customers around the world
with that i'll turn it over to kathy to take you through our results in more detail
and our fiscal twenty twenty seven guidance
thank you brian and thank you all for joining us today
healthy balance of transactions up 2.4% and ticket up 5.2%. Contribution from transactions moderated from Q3.
in fiscal twenty twenty six we strengthened the fundamentals of our business
and that work is increasingly showing up in our financial performance
i'd like to also thank our partners whose focus and dedication were
particularly as we began to lap the growth from last year. On a two-year basis, U.S. transaction comps improved sequentially from Q3.
critical to delivering our back to starbucks priorities
now to our fourth quarter results and outlook
fourth quarter consolidated net revenues
nine point one billion dollars down three point nine percent year over year
a sign that customers continued to choose us more often. And as Brian mentioned, we delivered growth across all day parts, income levels, and access points.
primarily reflecting starbucks china's transition from company operated
to a licensed joint venture
global comps grew seven point two percent
our fifth consecutive positive quarter
access points. Ticket growth continued to reflect balanced contribution from pricing, attach, mix, and delivery growth, with pricing and mix including.
north america net revenues grew six point three
percent to seven point three billion dollars
led by strong company operated comps
in both the u s and canada
including merchandise, driving most of the sequential improvement from Q3. We've been very pleased with our delivery performance in the U.S. with revenues.
u s comps grew seven point seven percent
with a healthy balance of transactions up two point four percent
and ticket up five point two percent
contribution from transactions moderated from q3
more than tripling over the past five years, and these transactions have been largely incremental. Expanding delivery to more coffeehouses supported our growth in fiscal 2016.
particularly as we began to lap the growth from last year
on a two year basis u s transaction comps improved sequentially from q3
a sign that customers continue to choose us more often
26, and with delivery soon to be fully integrated into the Starbucks app, we see additional runway in fiscal 27. We're also driving the engagement.
and as brian mentioned
we delivered growth across all dayparts income levels and access points
ticket growth continued to reflect
balanced contribution from pricing attach
engagement we want to see in our Starbucks rewards program. 90-day active members reached a record 36 million in the quarter. More members are moving.
mix and delivery growth with pricing and mix including merchandise
driving most of the sequential improvement from q3
we've been very pleased with our delivery performance
into higher frequency tiers, and Starbucks Rewards members led our transaction and sales growth in the quarter. North America licensed revenues grew 2%.
in the us with revenues more than tripling over the past five years
and these transactions have been largely incremental
expanding delivery to more coffee houses supported our growth in fiscal twenty twenty six
2.6% in Q4, reflecting a third consecutive quarter of positive system-wide comps and strength across broader retail, travel, and leisure. We ended the quarter.
and with delivery soon to be fully integrated into the starbucks app
we see additional runway in fiscal twenty twenty seven
we're also driving the engagement we want to see in our starbucks rewards
program
quarter with 18,176 coffee houses in North America. This reflects 247 company-operated net closures, primarily from
ninety day active members reached a record thirty six million in the quarter
more members are moving into higher frequency tiers
and starbucks rewards members led our transaction and sales growth in the quarter
0.6% in Q4, reflecting a third consecutive quarter of positive system-wide comps and strength across broader retail, travel, and leisure. We ended the quarter.
quarter with 18,176 coffee houses in North America. This reflects 247 company-operated net closures, primarily from
from last month's portfolio actions, and partially offset by 52 net licensed openings. Moving to international.
north america license revenues grew two point six percent in q4
last month's portfolio actions, and partially offset by 52 net licensed openings. Moving to international, the
reflecting a third consecutive quarter of positive system wide comps
and strength across broader retail travel and leisure
segment delivered Q4 net revenues of $1.3 billion and operating income of $261.3 million with positive system-wide comps.
we ended the quarter with eighteen thousand one hundred and seventy six
coffee houses in north america
this reflects two forty seven company operated net closures
comps across our diversified portfolio. International company-operated comps, which are now largely comprised of Japan and the UK, grew 0.9%.
primarily from six percent in q4 reflecting a third consecutive quarter of positive
system wide comps and strength across broader retail travel and leisure
we ended the quarter with eighteen thousand one hundred and seventy six
coffee houses in north america
0.9%. We had exceptional performance in the UK, balanced by tougher comparisons in Japan. As a reminder, Starbucks China's retail.
this reflects two forty seven company operated net closures
primarily from last month's portfolio actions and partially offset
by fifty two net licensed openings
retail operations are now deconsolidated from our financials and reported as a licensed business. With our 40% joint venture economics reported in income from
moving to international
this is from last month's portfolio actions and partially offset
by fifty two net licensed openings
from equity investees. This transition will continue to be the driver of year over year changes in international through the first half of fiscal twenty seven.
moving to international
the segment delivered q4 net revenues of one point three billion dollars
and operating income of two hundred and sixty one point three million dollars
with positive system wide comps
Operations are now deconsolidated from our financials and reported as a licensed business. With our 40% joint venture economics reported in income from
across our diversified portfolio
from equity investees. This transition will continue to be the driver of year over year changes in international through the first half of fiscal twenty seven.
International drove our unit growth in fiscal 26, ending Q4 with 23,431 coffee houses, including
international company operated comps
operations are now deconsolidated from our financials and reported as a licensed business. With our 40% joint venture economics reported in income from
from equity investees. This transition will continue to be the driver of year over year changes in international through the first half of fiscal twenty seven.
International drove our unit growth in fiscal 26, ending Q4 with 23,431 coffee houses, including
which are now largely comprised of japan and the uk grew zero point nine percent
Include international drove our unit growth in fiscal 26, ending Q4 with 23,431 coffee houses.
including 498 net new openings in the fourth quarter. This demonstrates our continued confidence in the long-term opportunity to grow our brand globally.
we had exceptional performance in the uk balanced by
tougher comparisons in japan
as a reminder
starbucks china's retail operations are now deconsolidated
from our financials and reported as a licensed business
brand globally. In total, we ended fiscal 26 with 41,607 coffee houses globally, with 617 net.
with our forty percent joint venture economics reported in income from
equity investees
net international drove our unit growth in fiscal 26, ending Q4 with 23,431 coffee houses.
including 498 net new openings in the fourth quarter. This demonstrates our continued confidence in the long-term opportunity to grow our brand globally.
brand globally. In total, we ended fiscal 26 with 41,607 coffee houses globally, with 617 net.
this transition will continue to be the driver
of year over year changes in international through the first half of fiscal twenty twenty seven
net new openings for the full year, well ahead of our most recent expectations. In channel development, Q4 net revenues declined 8.9%.
our are now deconsolidated from our financials
and reported as a licensed business
with our forty percent joint venture economics reported in income from
equity investees
8.9% to $494.4 million, led by the Global Coffee Alliance and the absence of coffee price-related tailwinds we saw in the first.
this transition will continue to be the driver of year over year changes
in international through the first half of fiscal twenty twenty seven
international drove our unit growth in fiscal twenty
first three quarters. Operating income was about flat year over year, despite the lower revenue base. With consumers remaining choiceful in their spending,
six ending q4 with twenty three thousand four hundred and thirty one coffee
at new openings for the full year, well ahead of our most recent expectations. In channel development, Q4Net revenues declined 8.9%.
8.9% to $494.4 million, led by the Global Coffee Alliance and the absence of coffee price-related tailwinds we saw in the first three quarters. Operating income was about flat year over year, despite the lower revenue base. With consumers remaining choiceful in their spending,
including our operations are now deconsolidated
from our financials and reported as a licensed business
we and our partners will continue to lean into innovation and marketing activations to maintain our number one position in at-home and ready-to-drink coffee in North America.
with our forty percent joint venture economics reported in income from
equity investees
this transition will continue to be the driver
of year over year changes in international through the first half of fiscal twenty twenty seven
and to build new occasions with offerings like refreshers and protein. Moving to margin, Q4 consolidated operating margin expanded 450 basis.
international drove our unit growth in fiscal twenty six
quarters. Operating income was about flat year over year, despite the lower revenue base. With consumers remaining choiceful in their spending,
we and our partners will continue to lean into innovation and marketing activations to maintain our number one position in at-home and ready-to-drink coffee in North America.
and to build new occasions with offerings like refreshers and protein. Moving to margin, Q4 consolidated operating margin expanded 450 basis.
ending q4 with twenty three thousand four hundred and thirty one coffee houses
including
basis points to approximately 14%. This was our third consecutive quarter of margin expansion, with improvement across every segment.
international drove our unit growth in fiscal twenty six
ending q4 with twenty three thousand four hundred and thirty one coffee houses
including four ninety eight net new openings in the fourth quarter
North America operating margin expanded 440 basis points to approximately 16%, driven primarily by sales leverage, disciplined execution.
this demonstrates our continued confidence
in the long term opportunity to grow our brand globally
in total we ended fiscal twenty twenty six
execution, and cost savings. We also lapped our Green Apron Service labor investments in August, which are now a part of our base. These benefits were part.
with forty one thousand six hundred and seven coffee houses globally
with six seventeen net
international drove our unit growth in fiscal twenty six
ending q4 with twenty three thousand four hundred and thirty one coffee houses
partially offset by higher product and distribution costs, mainly from product mix. Coffee price impacts were roughly neutral in the quarter.
including four ninety eight net new openings in the fourth quarter
this demonstrates our continued confidence
in the long term opportunity to grow our brand globally
consolidation, and cost savings. We also lapped our Green Apron Service labor investments in August, which are now a part of our base. These benefits were part.
partially offset by higher product and distribution costs, mainly from product mix. Coffee price impacts were roughly neutral in the quarter.
Consolidated GNA declined approximately 20%, reflecting our cost savings efforts and China deconsolidation. Together, these results.
in total we ended fiscal twenty twenty six
validated GNA declined approximately 20%, reflecting our cost savings efforts and China deconsolidation. Together, these results.
with forty one thousand six hundred and seven coffee houses globally
with six seventeen net new openings for the full year
well ahead of our most recent expectations
reflect stronger execution with more of our sales growth flowing to the bottom line. Interest and other income of fifty nine point two million dollars.
in channel development q4 net revenues
declined eight point nine percent
to four hundred and ninety four point four million dollars led by the global coffee alliance
benefited from net gains on certain investments in the fourth quarter. And our effective tax rate was in line with our expectations at $24.2 million.
and the absence of coffee price related tailwinds
we saw in the first three quarters
operating income was about flat year over year
despite the lower revenue base
24.7%. All in, fourth quarter EPS was 80 cents, up approximately 54 percent year over year.
with consumers remaining choiceful in their spending
at new openings for the full year
well ahead of our most recent expectations
reflects stronger execution with more of our sales growth flowing to the bottom line. Interest and other income of $59.2 million.
benefited from net gains on certain investments in the fourth quarter. And our effective tax rate was in line with our expectations at $24.2 million.
24.7%. All in, fourth quarter EPS was 80 cents, up approximately 54 percent year over year.
in channel development q4 net revenues
declined eight point nine percent
Our fourth quarter and full year results showcase our focus on executing back to Starbucks to strengthen the business, and our earnings recovery is well underway.
to four hundred and ninety four point four million dollars led by the global coffee alliance
and the absence of coffee price related tailwinds
we saw in the first three quarters
underway. Turning to our outlook. In fiscal 27, we see multiple drivers of growth and a clear path to stronger earnings as we continue.
operating income was about flat year over year
despite the lower revenue base
seven percent. All in, fourth quarter EPS was eighty cents, up approximately fifty four percent year over year.
Our fourth quarter and full year results showcase our focus on executing back to Starbucks to strengthen the business, and our earnings recovery is well underway.
underway. Turning to our outlook. In fiscal 27, we see multiple drivers of growth and a clear path to stronger earnings as we continue.
with consumers remaining choiceful in their spending
we and our partners will continue to lean into innovation and marketing
continue advancing our long-term priorities. As a reminder, fiscal 27 is a 53-week year. Our guidance includes the extra week.
to maintain our number one position in at home and ready
to drink coffee in north america and to build new
Our fourth quarter and full year results showcase our focus on executing back to Starbucks to strengthen the business, and our earnings recovery is well underway.
underway. Turning to our outlook. In fiscal 27, we see multiple drivers of growth and a clear path to stronger earnings as we continue.
continue advancing our long-term priorities. As a reminder, fiscal 27 is a 53-week year. Our guidance includes the extra week.
occasions with offerings like refreshers and protein
moving to margin q4 consolidated
except for sales comps, which are on a comparable 52-week basis. Starting at the top of the PL, we expect full-year consolidated net revenues.
operating margin expanded four fifty basis to quarters
operating income was about flat year over year
despite the lower revenue base
with consumers remaining choiceful in their spending
revenues to decrease by approximately 1 percent year over year, including approximately $700 million of revenues related to the 53rd week. The expected decline.
we and our partners will continue to lean into innovation and marketing activations
to maintain our number one position in at home
and ready to drink coffee in north america and to build new occasions
with offerings like refreshers and protein
is primarily driven by our international segment as we lapped Starbucks China's retail operations, which were company operated, in the first half of the year.
moving to margin q4 consolidated
operating margin expanded four fifty basis points
to approximately fourteen percent
revenues decrease by approximately 1% year over year, including approximately $700 million of revenues related to the 53rd week. The expected decline.
is primarily driven by our international segment as we lapped Starbucks China's retail operations, which were company operated, in the first half of the year.
this was our third consecutive quarter of margin expansion
revenue expectations also include modest coffee deflation and the impact of fewer new North America coffee house openings. We expect full-year North America.
with improvement across every segment
Revenue expectations also include modest coffee deflation and the impact of fewer new North America coffeehouse openings.
north america operating margin expanded four forty basis points
to approximately sixteen percent driven primarily by sales leverage
American net revenue growth to slightly exceed comp growth, driven by the impact of the 53rd week. During the first three quarters of the year, we expect North America net revenue
disciplined execution and cost savings
we also lapped our green apron service labor investments in august
which are now a part of our base
Revenue expectations also include modest coffee deflation and the impact of fewer new North America coffee house openings. We expect full-year North America.
American net revenue growth to slightly exceed comp growth, driven by the impact of the 53rd week. During the first three quarters of the year, we expect North America net revenue
revenue growth will trail the segment's comp growth, reflecting the recent company-operated coffee house closures. In addition, we expect channel development.
these benefits were partially offset by higher product and distribution costs
mainly from product mix
coffee price impacts were roughly neutral in the quarter
new growth will trail the segment's comp growth, reflecting the recent company-operated coffeehouse closures. In addition, we expect channel development.
consolidation and cost savings
net revenues to decline by approximately 10%, also heavily influenced by coffee price trends. In the U.S., consumers are increasingly prioritizing.
we also lapped our green apron service labor investments in august
which are now a part of our base
these benefits were partially offset by higher product and distribution costs
mainly from product mix
growth will trail the segment's comp growth, reflecting the recent company-operated coffee house closures. In addition, we expect channel development.
net revenues to decline by approximately 10%, also heavily influenced by coffee price trends. In the U.S., consumers are increasingly prioritizing.
prioritizing experiences that feel worth it. That reinforces our focus on quality, craft, and connection, and on delivering a consistently great customer.
coffee price impacts were roughly neutral in the quarter
consolidated g and a declined approximately twenty percent
customerizing experiences that feel worth it. That reinforces our focus on quality, craft, and connection, and on delivering a consistently great customer.
reflecting our cost savings efforts and china deconsolidation
together
net revenues to decline by approximately 10%, also heavily influenced by coffee price trends. In the U.S., consumers are increasingly prioritizing.
prioritizing experiences that feel worth it. That reinforces our focus on quality, craft, and connection, and on delivering a consistently great customer.
customer experience. We expect fiscal 27 North America comps to grow approximately 4%, led by beverage and food innovation, green apron service.
net revenues to decline by approximately 10%, also heavily influenced by coffee price trends. In the U.S., consumers are increasingly prioritizing.
prioritizing experiences that feel worth it. That reinforces our focus on quality, craft, and connection, and on delivering a consistently great customer.
customer experience. We expect fiscal 27 North America comps to grow approximately 4%, led by beverage and food innovation, green apron service.
experience. We expect fiscal 27 North America comps to grow approximately 4%, led by beverage and food innovation, green apron.
apron service, delivery, and a small contribution from uplifts and sales transfer from coffee house closures. Any pricing will remain focused and well.
below CPI. We expect fiscal 27's cadence of U.S. comps to be more balanced across the quarters than fiscal 26. Specifically,
we expect less variability between Q one and the rest of the year. Also moving forward, we'll focus our annual comp guidance on our North America company operated business.
expect
less variability between q1 and the rest of the year
also moving forward we'll focus our annual comp guidance on our north america company
It is the primary driver of our underlying comp performance as our international portfolio is now predominantly licensed. We expect fiscal 2020.
operated business it is the primary driver of our underlying comp performance
as our international portfolio is now predominantly licensed
below CPI. We expect fiscal 27's cadence of U.S. comps to be more balanced across the quarters than fiscal 26. Specifically,
we expect less variability between Q1 and the rest of the year. Also, moving forward, we'll focus our annual comp guidance on our North America company-operated business. It is the primary driver of our underlying comp performance as our international portfolio is now predominantly licensed. We expect fiscal 2020.
we expect fiscal to be below cpi
27 consolidated operating margin of 13.5 to 14 percent, up approximately 190 basis points at the midpoint. This is led by
we expect fiscal twenty twenty seven's cadence
of u s comps to be more balanced across the quarters than fiscal twenty twenty six
specifically we expect less variability between q1 and the rest
rest of the year
by our North America business and supported by sales leverage and our focus on disciplined coffeehouse execution. In addition, we remain on
also moving forward we'll focus our annual comp guidance on our north america company
operated business it is the primary driver of our underlying comp performance
as our international portfolio is now predominantly licensed
on track with our cost savings work, which we expect to continue realizing through fiscal twenty eight. And to date, we've realized roughly half of those gross savings.
we expect fiscal twenty twenty seven consolidated operating margin of
thirteen point five percent to fourteen percent
up approximately one hundred and ninety basis points at the midpoint
We expect benefits to operating margin to become more evident in fiscal twenty seven as we now have lapped our labor investments in green apron service.
this is led by our north america business
and supported by sales leverage
and our focus on disciplined coffeehouse execution
in addition we remain on track with our cost savings work
service. In GNA, we continue to realize savings from actions we took last year and expect consolidated GNA dollars to be flat to slow.
which we expect to continue realizing through fiscal twenty twenty eight
and to date we've realized roughly half of those gross savings
we expect benefits to operating margin to become more
slightly down year over year. For international, we expect operating margin to begin the year at around 20% and improve slightly through the year, supported by.
evident in fiscal twenty twenty seven as we now have lapped
our labor investments in green apron service
in g and a we continue to realize savings from
sales leverage and our capital-efficient licensed model. And in channel development, we expect operating margin to remain in the mid to high 40% range.
actions we took last year and expect consolidated g and a dollars to be flat
to slightly down year over year
for international we expect operating margin to begin
the year at around twenty percent and improve slightly through the year supported by sales
over the longer term. For tax, we expect our effective tax rate will be roughly in line with or slightly below fiscal 26.
leverage and our capital efficient licensed model
slightly down year over year. For international, we expect operating margin to begin the year at around 20% and improve slightly through the year, supported by.
sales leverage and our capital-efficient licensed model. And in channel development, we expect operating margin to remain in the mid to high 40% range.
over the longer term. For tax, we expect our effective tax rate will be roughly in line with or slightly below fiscal 26.
and in channel development we expect operating margin to remain in the mid
to high forty percent range
over the longer term
Putting it all together, we expect EPS of $3.15 to $3.25, growing close to 18% year-over-year.
for tax we expect our effective tax rate
will be roughly in line with or slightly below fiscal twenty six
slightly down year over year
for international we expect operating margin to begin
over the longer term. For tax, we expect our effective tax rate will be roughly in line with or slightly below fiscal 26.
Putting it all together, we expect EPS of $3.15 to $3.25, growing close to 18% year-over-year.
year-over-year at the midpoint. Our guidance includes a benefit of slightly more than 10 cents related to the 53rd week. Finally, we expect.
the year at around twenty percent and improve slightly through the year supported by sales
expier at the midpoint. Our guidance includes a benefit of slightly more than 10 cents related to the 53rd week. Finally, we expier.
and our capital efficient licensed model
and in channel development we expect operating margin to remain in the
expect approximately 1,200 net new coffee houses globally in fiscal 27. International is expected to drive much of this growth at approximately 1,100 net new houses.
mid to high forty percent range
over the longer term
for tax we expect our effective tax rate
will be roughly in line with or slightly below fiscal twenty twenty six
new openings, with China contributing about half. In North America, we expect 90 to 100 net new coffee houses for the year. About half is expected.
putting it all together we expect eps
of three point one five dollars
to three point two five dollars
growing close to eighteen percent year over year over the longer term
expect approximately 1,200 net new coffee houses globally in fiscal 27. International is expected to drive much of this growth at approximately 1,100 net new.
new openings, with China contributing about half. In North America, we expect 90 to 100 net new coffee houses for the year. About half is expected.
expected to come from our licensed portfolio. The balance is expected to come from our company-operated business as we rebuild the development pipeline Brian discussed.
for tax we expect our effective tax rate
will be roughly in line with or slightly below fiscal twenty twenty six
Expected to come from our licensed portfolio. The balance is expected to come from our company operated business as we rebuild the development pipeline Brian discussed.
putting it all together we
expect eps of three point one five dollars
Fiscal 27 is an important step toward our fiscal 28 framework. We're tracking ahead of pace toward our 2028 goals.
to three point two five dollars
growing close to eighteen percent year over year at the midpoint
new openings, with China contributing about half. In North America, we expect 90 to 100 net new coffee houses for the year. About half is expected.
expected to come from our licensed portfolio. The balance is expected to come from our company-operated business as we rebuild the development pipeline Brian discussed.
Fiscal 27 is an important step toward our fiscal 28 framework. We're tracking ahead of pace toward our 2028 goals.
our guidance includes a benefit of slightly more than point one zero dollars
related to the fifty third week
and we remain focused on building from here. Our capital allocation priorities remain investing in the business with discipline, maintaining our investment.
finally we expect the year at the midpoint
to come from our licensed portfolio. The balance is expected to come from our company-operated business as we rebuild the development pipeline Brian discussed.
Fiscal 27 is an important step toward our fiscal 28 framework. We're tracking ahead of pace toward our 2028 goals.
and we remain focused on building from here. Our capital allocation priorities remain investing in the business with discipline, maintaining our investment.
our guidance includes a benefit of slightly more than zero one zero dollars related to the fifty
third week
Fiscal 27 is an important step toward our fiscal 28 framework. We're tracking ahead of pace toward our 2028 goals.
and we remain focused on building from here. Our capital allocation priorities remain investing in the business with discipline, maintaining our investment.
investment-grade balance sheet and supporting a competitive dividend. We recently raised our quarterly dividend to 63 cents per share, our 16th competitive.
finally we expect approximately twelve hundred net new coffee houses globally in fiscal
grade balance sheet and supporting a competitive dividend. We recently raised our quarterly dividend to 63 cents per share, our 16th competitive.
twenty twenty seven international is expected to drive much of this growth
at approximately eleven hundred net new openings with china contributing about half
consecutive annual increase. We also expect to deploy approximately $1 billion toward share repurchases, reflecting our confidence in the
in north america we expect ninety to one hundred net new coffee houses
for the year
about half is expected to expect approximately twelve hundred net new coffee houses globally in
the business and our plan. In fiscal 27, we expect capital expenditures to be approximately 5% of net revenues, primarily as we continue investing.
fiscal twenty twenty seven international is expected to drive much of this growth
at approximately eleven hundred net new openings with china contributing about half
in north america we expect ninety to one hundred net new coffee houses
for the year
consecutive annual increase. We also expect to deploy approximately $1 billion towards share repurchases, reflecting our confidence in the
the business and our plan. In fiscal 27, we expect capital expenditures to be approximately 5% of net revenues, primarily as we continue investing.
investing in uplifts and our back-to-Starbucks priorities. To conclude, fiscal 26 demonstrated the meaningful progress we're making and gives.
about half is expected to come from our licensed portfolio
investing in uplifts and our back to Starbucks priorities. To conclude, fiscal 26 demonstrated the meaningful progress we're making and gifts.
the balance is expected to come from our company operated business
as we rebuild the development pipeline brian discussed
gives us confidence in the path ahead. Back to Starbucks has moved us from turnaround to growth, and our priorities are clear. We're focused on executing with
it did come from our licensed portfolio
the balance is expected to come from our company operated business
as we rebuild the development pipeline brian discussed
fiscal twenty twenty seven is an important step
discipline and delivering sustainable growth and long term shareholder value. And with that, we are now ready to take your questions.
toward our fiscal twenty eight framework
we're tracking ahead of pace toward our twenty twenty eight goals
and new openings with china contributing about half
We will now begin our question and answer session. If you would like to ask a question, press star, then the number one on your telephone keypad.
in north america we expect ninety to one hundred net
new coffee houses for the year
Back to Starbucks has moved us from turnaround to growth, and our priorities are clear. We're focused on executing with
discipline and delivering sustainable growth and long term shareholder value. And with that, we are now ready to take your questions.
We will now begin our question and answer session. If you would like to ask a question, press star, then the number one on your telephone keypad.
about half is expected to come from our licensed portfolio
the balance is expected to come from our company operated business
as we rebuild the development pipeline brian discussed
to discipline and deliver sustainable growth and long-term shareholder value. And with that, we are now ready to take your questions.
We will now begin our question and answer session. If you would like to ask a question, press star, then the number one on your telephone keypad.
to allow as many questions as possible, we ask you to please limit yourself to one question at a time. We will come back for follow-up questions as time allows.
fiscal twenty twenty seven is an important step
toward our fiscal twenty eight framework
To allow as many questions as possible, we ask you to please limit yourself to one question at a time. We will come back for follow-up questions as time allows.
we're tracking ahead of pace toward our twenty twenty eight goals
allows. And your first question comes from Brian Harbour with Morgan Stanley. Please state your question.
and we remain focused on building from here
our capital allocation priorities remain investing in the business
with discipline maintaining our investment to come from our licensed portfolio
the balance is expected to come from our company operated business
as we rebuild the development pipeline brian discussed
fiscal twenty twenty seven is an important step
Yeah, thanks. Good afternoon, guys. In guiding 4% same-store sales this year, I mean, that is very specific.
toward our fiscal twenty eight framework
specific. You had kind of the three percent plus algo. So should we think about that as being you essentially view this as an on algo year plus
we're tracking ahead of pace toward our twenty twenty eight goals
and we remain focused on building from here
And your first question comes from Brian Harbor with Morgan Stanley. Please state your question.
Thanks. Good afternoon, guys. In guiding 4% same-store sales this year, I mean, that is very specific. You had kind of the 3% plus algo. So should we think about that as being you essentially view this as an on-algo year plus
our capital allocation priorities remain investing in the business with
plus. You know, thanks. Good afternoon, guys. In guiding 4% Seamster sales this year, I mean, that is very specific.
specific. You had kind of the 3% plus algo. So should we think about that as being you essentially view this as an on-algo year plus maybe some of the benefit from closures and uplifts that you stated? And I guess could you just comment on whether you're seeing something akin to that?
discipline maintaining our investment
fiscal twenty twenty seven is an important step
toward our fiscal twenty eight framework
maybe some of the benefit from closures and uplifts that you stated. And I guess could you just comment on whether you're seeing something akin to that?
we're tracking ahead of pace toward our twenty twenty eight goals
specific you had kind of the three percent plus algo. So should we think about that as being you know you essentially view this as an on algo year plus
plus maybe some of the benefit from closures and uplifts that you stated. And I guess, could you just comment on whether you're seeing something akin to that right now as we enter the fiscal first quarter? And just, I guess, more broadly, what do you view as kind of the most important incremental layers as we go into this year?
and we remain focused on building from here
our capital allocation priorities remain
Right now as we enter the fiscal first quarter, and just I guess, you know, more broadly, what do you view as kind of the most important incremental layers as we go into this?
investing in the business with discipline maintaining our investment grade balance sheet
and supporting a competitive dividend
this year? Yeah. Look, thanks for the question. No, the way to think about it is our guidance for fiscal year 27 is really built on
we recently raised our quarterly dividend to zero six three dollars per share
our sixteenth balance sheet and supporting a competitive dividend
on the strength of the fundamentals of the business, you know, really driven by green apron service, coupled with a really strong rewards and digital program, and then obviously the
we recently raised our quarterly dividend to zero six three dollars per share
our sixteenth consecutive annual increase
we also expect to deploy
approximately one billion dollars towards share repurchases
marketing menu innovation that we've got going on. So, you know, the way I look at it is we're probably a year ahead of schedule relative to the guidance we gave for fiscal year.
reflecting our confidence in the business and our plan
in fiscal twenty twenty seven we expect capital expenditures to be approximately
five percent of net revenues
primarily as we continue in consecutive annual increase
28. And we just see strength in the business that gave us the confidence to commit to 4% comps.
we also expect to deploy
approximately one billion dollars towards share repurchases
reflecting our confidence in the business and our plan
obviously, I think our goal always is to continue to build on the strength that we have. And the good news is that strength is coming through the fundamentals.
in fiscal twenty twenty seven we expect capital expenditures to be
approximately five percent of net revenues
primarily as we continue investing in uplifts
and our back to starbucks priorities
to conclude
28? And we just see strength in the business that gave us the confidence to commit to 4% comps.
obviously, I think our goal always is to continue to build on the strength that we have. And the good news is that strength is coming through the fundamentals. I can't emphasize that enough. Hopefully, you heard that in my prepared remarks. The business is on really strong footing, and it's driven by operational health.
fiscal twenty twenty six demonstrated the meaningful progress we're making
I can't emphasize that enough. Hopefully, you heard that in my prepared remarks. The business is on really strong footing, and it's driven by operational health.
and gives us an back to starbucks priorities
to conclude
Obviously, I think our goal always is to continue to build on the strength that we have. And the good news is that strength is coming through the fundamentals.
fundamentals? I can't emphasize that enough. Hopefully, you heard that in my prepared remarks. The business is on really strong footing and it's driven by operational health. Thank you. And your next question comes from Danilo Gargiolo with Bernstein. Please stay your question. Great. Thank you.
fiscal twenty twenty six demonstrated the meaningful progress we're making
and gives us confidence in the path ahead
back to starbucks has moved us
I think our goal always is to continue to build on the strength that we have. And the good news is that strength is coming through the fundamentals.
from turnaround to growth
fundamentals? I can't emphasize that enough. Hopefully, you heard that in my prepared remarks. The business is on really strong footing and it's driven by operational health. Thank you. And your next question comes from Danilo Gargiolo with Bernstein. Please stay your question. Great. Thank you.
and our priorities are clear
thank you. Thank you. And your next question comes from Danilo Gargiolo with Bernstein. Please steer your question. Great, thank you.
you. I was wondering if you can comment on the evolution of margins in twenty twenty seven. How should we think about the puts and takes? I heard you say expectations on
we're focused on executing with discipline and delivering sustainable growth
and long term shareholder value
and with that we
are now ready to take your questions
we will now begin our question and answer session
on deflationary coffee. And if you can also indulge us in maybe expanding on the $2 billion saving opportunities that you have identified in the past. So if you
then the number one on your telephone keypad
in order confidence in the path ahead
back to starbucks has moved us
from turnaround to growth
could give us some examples of incremental savings that you could be unlocking from here on, excluding the sales leverage that is coming with that. And congrats. Thanks, Danielle.
and our priorities are clear
we're focused on executing with discipline and delivering sustainable growth
and long term shareholder value
and with that we
are now ready to take your questions
appreciate the congrats. Thank you. So, a little bit of color on 2027 margin. As we shared in the prepared remarks, it won't be quite as
we will now begin our question and answer session
on your telephone keypad
as, you won't see as much variation as you saw in 26. As you know, we had a lot of change moving through our PL last year. So, going into 2027, it'll be a little bit more.
in order discipline and delivering sustainable growth
and long term shareholder value
and with that
are now ready to take your questions
we will now begin our question and answer session
appreciated. Congrats, thank you. So, a little bit of color on 2027 margin. As we shared in the prepared remarks, it won't be quite as
as, you won't see as much variation as you saw in 26. As you know, we had a lot of change moving through our PL last year. So, going into 2027, it'll be a little bit more balanced, you know, I guess, all in, probably about a little bit better than 40 to 45% or so is in the first half. The remainder is in the back half.
then the number one on your telephone keypad
More balanced, you know, I guess all in, probably about a little bit better than 40 to 45 percent or so is in the first half, the remainder is in the back half.
in order to allow as many questions as possible
but it's fairly balanced throughout the course of the year. And then to really answer about savings, we're really pleased with our savings program. As we shared in the prepared remarks, we're over.
we ask you to please limit yourself to one question at a time
we will come back for follow-up questions as time allows
to allow as many questions as possible
we ask you to please limit yourself to one question at a time
50% of the $2 billion growth savings program achieved. And this year, more towards GNA, as we always shared. Next would be office.
we will come back for follow-up questions as time allows
more balanced, you know, I guess, all in, probably about a little bit better than 40 to 45 percent or so is in the first half, the remainder is in the back half.
half, but it's fairly balanced throughout the course of the year. And then to really answer about savings, we're really pleased with our savings program. As we shared in the prepared remarks, we're over 50 percent of the $2 billion growth savings program achieved. And this year, more towards GNA, as we always shared. Next would be office.
and your first question comes from brian harbour with morgan stanley
please state your question
OpEx and then cost of goods sold. Cost of goods sold is the one that we always said would be more into 27 and 28, and that's exactly what we're going to see. You're going to start to see it wait more there.
thanks good afternoon guys in guiding
four percent same store sales this year i mean that is very specific you had
because of just the realities of getting new products online with new vendors. Sometimes we have to let existing contracts finish.
the three percent plus algo
so should we think about that as being you essentially view this as an on algo europe
plus
X and then cost of goods sold. Cost of goods sold is the one that we always said would be more into 27 and 28. And that's exactly what we're gonna see: you're gonna start to see it wait more there.
because of just the realities of getting new products online with new vendors. Sometimes we have to let existing contracts finish. And so just getting that to pull through our business, the cost of goods sold, start to show up in 27 and 28 more. But we're on track. We're still very, very good. Still have a very robust pipeline.
X and then cost of goods sold. Cost of goods sold is the one that we always said would be more into 27 and 28, and that's exactly what we're going to see: you're going to start to see it wait more there.
because of just the realities of getting new products online with new vendors. Sometimes we have to let existing contracts finish. And so just getting that to pull through our business, the cost of goods sold, start to show up in 27 and 28 more. But we're on track. We're still very, very good. Still have a very robust pipeline.
Just getting that to pull through our business, the cost of goods sold, start to show up in 27 and 28 more. But we're on track. We're feel very, very good. Still have a very robust pipeline.
The team continues to add to that every day. And you're going to see a little bit more in cost of goods sold and then operating expenses. And then, lastly, would be GNA because.
because you've seen the most of that this year. We'll have a little bit of benefit from the calendarization of the work we did this year. Yeah, the only thing I would add to what Kathy said is just.
just if you remember at our Investor Day, we targeted the idea of 13.5% to 15% margins by fiscal year 28. And I think the fact that
you've seen the most of that this year will have a little bit of benefit from the calendarization of the work we did this year. Yeah, the only thing I would add to what Kathy said is just.
just if you remember at our Investor Day, we targeted the idea of 13.5% to 15% margins by fiscal year 28. And I think the fact that we are already believing we will achieve that low end of that guidance in fiscal year 27 speaks to, I think, the excellent work on the cost.
that we are already believing we will achieve at low end of that guidance in fiscal year 27 speaks to, I think, the excellent work on the cost.
as you've seen the most of that this year we'll have a little bit of benefit from the
calendarization of the work we did this year
cost, but also the fundamentals that are driving the top line in transactions. So the fact that we're already hitting what we were guiding for 28, the low end.
yeah yeah the only thing i would add to what kathy said is just
you remember at our investor day we we
targeted the idea of thirteen and a half to fifteen percent
margins by fiscal year twenty eight and i think the fact that we are already
in 27, I think, just speaks to the strength of the business and the operating discipline that we have on cost. Your next question comes from Dave.
believing we will achieve that low end of that guidance in fiscal year twenty
seven speaks to i think the excellent work
on the cost that we are already
David Palmer with EverCorp ISI. Please state your question. Thanks. I wanted to ask a question about the company unit.
believing we will achieve that low end of that
guidance in fiscal year twenty seven speaks to i think the excellent work
on the cost but also the fundamentals that are
driving the top line in transaction so the fact that we're already hitting what we were
unit growth in the United States, Americas. I think you s your comment was that net unit growth would be something south of 100.
guiding for twenty eight the low end in twenty seven i think just
In 27, I think just speaks to the strength of the business and the operating discipline that we have on cost. Your next question comes from Dave.
David Palmer with Evercorp ISI. Please state your question. Thanks. I wanted to ask a question about the accompany unit growth in the United States, Americas. I think your comment was that net unit growth would be something south of 100.
speaks to the strength of the business and the operating discipline that we have on cost
I think maybe closer to 40 to 50 this year. Could you speak to maybe the ramp that you see going into, you know?
your next question comes from david palmer
with evercore isi please state your question
thanks i wanted to ask
question about the company unit growth
longer term, going forward, I know there's capabilities that have to be added back. And if I could throw in one other thing, do the technology test that you're talking about, some
in the united states americas
i think your comment was net unit growth
would be something
south of a hundred in twenty seven i think just speaks to the strength of the business
I think maybe closer to 40 to 50 this year. Could you speak to maybe the ramp that you see going into, you know?
and the operating discipline that we have on cost
longer term, going forward, I know there's capabilities that have to be added back. And if I could throw in one other thing, the technology test that you're talking about sounds like a lot of that's going to help the drive-through. And could you just give us a sense of timetable if that works? And if it does work, what
your next question comes
sounds like a lot of that's going to help the drive-through? And could you just give us a sense of timetable of if that works? And if it does work, what
from david palmer with evercore isi please state your question
what metrics do you think that'll affect sales or profitability and when that could hit? And thank you. Yes, so um I'll start on the first part of your question.
thanks i wanted to ask
question about the company unit growth
in the united states americas
think your comment was that net unit growth would be something
just in regard to new units in the U.S. specifically. You know, we think it's going to be in that, call it 100 net new range, or a little below.
south of one hundred i think maybe closer to forty to fifty
this year
could you speak to maybe the ramp that you see
going into longer term going forward i know there's
below there. And that's really driven by the fact that we had to reset the pipeline. Obviously, we had to do some closures. But what I'm really excited about is how the pipeline.
capabilities that have to be added back and if i
could throw in one other thing the technology tests that you're talking about
i think maybe closer to forty to fifty
this year
pipeline is building for 28. You know, and I think we showed you guys our prototype at Investor Day, and I'm happy to say that that prototype is now up and running.
could you speak to maybe the ramp that you see
going into longer term going forward i know there's capabilities that have
a couple markets, and we're seeing great response both in the cost to build and then the way that our teams are able to operate. Our partners are providing great experiences for our customers.
to be added back and if i could throw in one other thing
the technology test that you're talking about sounds like
a lot of that's going to help the drive through and
and could you just give us a sense of timetable if that works
and if it does work what it sounds like
customers. So the feedback on the new unit has been really positive. Obviously, it's early days on the performance, but they've all opened really well. And then, you know, as you look out into
a lot of that's going to help the drive through and
and could you just give us a sense of timetable if that works
and if it does work what metrics do you think that will affect sales or
fiscal year 28, we want to get back into building new units north of 300 or so in the U.S. And we believe that is what gets us going towards
profitability and when that could hit
and thank you
yes so i'll start on the first part of your question
in regard to new units in the us specifically you know we think it's gonna be you know
that opportunity of 5,000 or more in North America? So, lots of opportunity on the new unit side of things. You know, it does take a little bit of time to reset the pipeline.
in that
call it hundred net new range or a little below there
pipelines. So, the feedback on the new unit has been really positive. Obviously, it's early days on the performance, but they've all opened really well. And then, you know, as you look out into the
fiscal year 28, you know, we want to get back into building new units, you know, north of 300 or so in the U.S. And we believe that is what gets us going towards that opportunity of 5,000 or more in North America. So lots of opportunity on the new unit side of things. You know, it does take a little bit of time to reset the pipeline.
and that's really driven by the fact that we had to reset the pipeline
pipeline, but I believe we now have done all the hard work, and now it's in the business of executing against the pipeline and getting the units built. On your question about drive-through, you know.
obviously we had to do some closures but what i'm really excited
about is how the pipeline is building for twenty eight
you know and i think we showed you guys our proto
at investor day i'm happy to say that that prototype is now
we're just getting started in some of these ideas, and it'll be exciting to see how these things test out. Once we have a better understanding of the testing,
up and running in a couple markets and we're seeing great
response both in the cost to build and then the way that our teams are able to operate our
partners are providing great experiences for our customers so the feedback
know, our goal is, David, that we'll improve throughput and how this works. If you can improve throughput, a lot of good things happen from there, both on the top line and bottom line. So, more to come.
on the new unit has been really positive obviously it's early days on the
they've all opened really well and then you know as you look out into fiscal year
twenty eight you know we wanna get back into building new units
It'd be premature to get specific on this, but the whole rationale behind it is to give a better customer experience and also a better partner experience, which then results in more.
you know north of three hundred or so in the us and
you know we believe that is what gets us going towards
that opportunity of five thousand or more in north america so
more throughput that ultimately drives the top and bottom line. Your next question comes from Chris O'Cull with Baird. Please go ahead.
lots of opportunity on the new unit side of things
it does take a little bit of time to reset the pipelines so the feedback
on the new unit has been really positive obviously it's early days on the performance but
with your question. Yeah, good afternoon, and congrats to the team for the progress it's making. So I had a follow-up question about the North American margin.
they've all opened really well and then you know as you look out into fiscal year twenty eight you know we wanna
get back into building new units you know north of three hundred or so in the us
It'd be premature to get specific on this, but the whole rationale behind it is to give a better customer experience and also a better partner experience, which then results in more.
more throughput that ultimately drives the top and bottom line. Your next question comes from Chris O'Cull with Baird. Please go ahead with your question. Yeah, good afternoon, and congrats to the team for the progress it's making. So I had a follow-up question about the North American margin.
and you know we believe that is what gets us going towards
or throughput that ultimately drives the top and bottom line. Your next question comes from Chris O'Cull with Baird. Please go ahead.
with your question. Yeah, good afternoon, and congrats to the team for the progress it's making. So, I had a follow-up question about the North American margin. You know, the profit flow through was much better than we expected in the fourth quarter. Beyond higher sales, what were the biggest drivers of the leverage? And then, look.
that opportunity of five thousand or more in north america so
lots of opportunity on the new unit side of things
more throughput that ultimately drives the top and bottom line. Your next question comes from Chris O'Cull with Baird. Please go ahead.
with your question. Yeah, good afternoon, and congrats to the team for the progress it's making. So, I had a follow-up question about the North American margin. You know, the profit flow through was much better than we expected in the fourth quarter. Beyond higher sales, what were the biggest drivers of the leverage? And then, look.
you know it does take a little bit of time to reset the pipeline
but i believe we now have done all the hard work and now it's in the business of
the team for the progress it's making. So I had a follow-up question about the North American margin.
You know, the profit flow through was much better than we expected in the fourth quarter. Beyond higher sales, what were the biggest drivers of the leverage? And then looking ahead, what does guidance assume for the North American and international operating margins next year? And are there any unusual items that could make the quarterly progression uneven?
the pipeline and getting the units built on your question about drive through
uneven. The profit flow through was much better than we expected in the fourth quarter. Beyond higher sales, what were the biggest drivers of the leverage? And then look.
looking ahead, what does guidance assume for the North America and international operating margins next year? And are there any unusual items that could make the quarterly progression uneven?
you know we're just getting started in some of these ideas and you know
uneven? Thanks, Chris. So starting to Q4 2026's North American margin, as you just said,
it'll be exciting to see how these things test out once we
better understanding of the testing you know our goal is david that we'll improve throughput
You know, the profit flow through was much better than we expected in the fourth quarter. Beyond higher sales, what were the biggest drivers of the leverage? And then look at
looking ahead, what does guidance assume for the North American and international operating margins next year? And are there any unusual items that could make the quarterly progression uneven? Thanks, Chris. So starting to Q4 2026's North America margin, as you just said,
and you know how this works if you can improve throughput a lot of good things happen from there both on the top line and bottom
the biggest driver is always sales leverage. So the 7.7% comp we did in the U.S., that obviously helps a ton with the sales leverage. So that's
line so more to come it'd be premature to get
specific on this but you know the whole rationale behind it is to give a better customer experience
and also a better partner experience which then results in
more throughput that ultimately drives the top and bottom line
the biggest driver of the margin expansion we saw. We also are rolling over our green apron service investments we did last year, remember, in August, mid-August timeframe, so we get the benefit.
your next question comes from chris
o'cull with baird please go ahead with your question
benefit of rolling over those investments as well. And then a little bit of kind of a few other things. We had some pricing benefit, we had some supply chain savings come through.
yes good afternoon and congrats to the team for the progress it's making
so i had a follow-up question about the north american margin it'd be
premature to get specific on this but the
and all of that is helping with that margin expansion. I go back to where Brian was earlier, though, and it's all on the fundamentals. If you think about what we're doing to drive.
whole rationale behind it is to give a better customer experience
and also a better partner experience which then results in
more throughput that ultimately drives the top and bottom line
your next question comes from chris
the durability of both the top line and the bottom line. It's everything we're talking about are going to help us to continue with that progress, which obviously then shows up in our guidance for.
o'cull with baird please go ahead with your question
yes good afternoon and congrats to the team for the progress it's making
so i had a follow-up question about the north american margin or throughput
for, and all of that is helping with that margin expansion. I go back to where Brian was earlier, though, and it's all on the fundamentals. If you think about what we're doing to drive,
that ultimately drives the top and bottom line
the durability of both the top line and the bottom line. It's everything we're talking about are going to help us to continue with that progress, which obviously then shows up in our guidance for this next year for fiscal 27. Then, maybe moving to fiscal 27, you know, I'm going to knock on wood about one-timers or unusual things. I'm hoping not.
your next question comes from chris
for this next year for fiscal 27. Then maybe moving to fiscal 27, you know, I'm going to knock on wood about one-timers or unusual things. I'm hoping not.
o'cull with baird please go ahead with your question
not. We do know we've got some benefits of coffee, should be helping us year over year. Obviously, we were a little bit higher in coffee prices this last year.
yes good afternoon and congrats to the team for the progress it's making
so i had a follow-up question about the north american margin
the profit flow through was much better than we expected in the fourth quarter
beyond higher sales
started to moderate throughout the course of the year. By the time it got to the fourth quarter, there was no impact. But that'll help us with a little bit of a tailwind this next year. All of the fundamental work we do.
what were the biggest drivers of the leverage
and then looking or throughput that ultimately drives the top and bottom line
do this next year for fiscal 27. Then maybe moving to fiscal 27, you know, I'm going to knock on wood about one-timers or unusual things. I'm hoping not.
not. We do know we've got some benefits of coffee, should be helping us year over year. Obviously, we were a little bit higher in coffee prices this last year. It started to moderate throughout the course of the year. By the time it got to the fourth quarter, there was no impact. But that'll help us with a little bit of a tailwind this next year. All of the fundamental work we
your next question comes from chris
we've done around cost savings will continue to help. And the biggest driver of the profit this next year, again, will always be that comp guide that we just gave. That's always going to help with the leverage. So we're
o'cull with baird please go ahead with your question
yes good afternoon and congrats to the team for the progress it's making
so i had a follow-up question about the north american margin
we're optimistic with the progress we're making, and that should be showing up in the guidance we just gave. Your next question comes from Sarah Senator with Bank of America.
the profit flow through was much better than we expected in the fourth quarter
beyond higher sales
what were the biggest drivers of the leverage then look at
America. Please proceed. Oh, thank you. Just, I guess, a question maybe about longer-term growth. You know, Kathy, first, do you mind just sharing the benefits perhaps from sales?
yeah good afternoon and congrats to the team for the progress it's making
so i had a follow-up question about the north american margin
the profit flow through was much better than we expected in the fourth quarter
beyond higher sales
transfer store closures, just trying to think about the balance between traffic and ticket over time. You know, I think your check obviously is a nice mix of attachment.
what were the biggest drivers of the leverage and then looking ahead
We're optimistic with the progress we're making, and that should be showing up in the guidance we just gave. Your next question comes from Sarah Senator with Bank of America.
America. Please proceed. Oh, thank you. Just, I guess, a question maybe about longer-term growth. Kathy, first, do you mind just sharing the benefits perhaps from sales transfer store closures? Just trying to think about the balance between traffic and ticket over time. I think your check, obviously, a nice mix of attachments.
what does guidance assume for the north american international operating margins
next year and are there any unusual items that could make the quarterly
Please proceed. Oh, thank you. Just, I guess, a question maybe about longer-term growth. You know, Kathy, first, do you mind just sharing the benefits perhaps from sales?
sales transfer store closures. Just trying to think about the balance between traffic and ticket over time. I think your check, obviously, a nice mix of attach and maybe a little bit of price. Next year, four percent comp I think would imply maybe less ticket, I'm assuming, and a bit more of a balance with traffic.
progression uneven the profit flow through is much better than we
patch and maybe a little bit of price. Next year, four percent comp I think would imply maybe less ticket, I'm assuming, and a bit more of a balance with traffic.
expected in the fourth quarter beyond higher sales
what were the biggest drivers of the leverage and then looking ahead
So, just sort of the components there. And then I think, Brian, at one point you had, you know, you've sort of, it seems like you've kind of narrowed your expectations for how many stores the
what does guidance assume for the north american international operating margins
transfer store closures, just trying to think about the balance between traffic and ticket over time. You know, I think your check obviously is a nice mix of attachments.
attach and maybe a little bit of price. Next year, a 4% comp, I think, would imply maybe less ticket, I'm assuming, you know, and a bit more of a balance with traffic. So, just sort of the components there. And then I think, Brian, at one point, you had, you know, you've sort of, it seems like you've kind of narrowed your expectations for how many stores the
next year and are there any unusual items that could make the quarterly progression uneven
thanks chris so
North America could support over time. Any changes or what has changed perhaps from maybe earlier commentary where maybe the number was a bit higher?
higher than the 5,000 you cited. Thank you. Maybe I'll start, Sarah. Good afternoon. So I'll start with first Q4 comps to help break down.
down the growth we saw. So, as you said, you asked about store closures or transfers there. It's consistent with the previous quarter, about 200 basis points helped us there.
North America could support over time. You know, any changes or what has changed perhaps from maybe earlier commentary where maybe the number was a bit higher.
higher than the 5,000 you cited. Thank you. Maybe I'll start, Sarah. Good afternoon. So I'll start with first Q4 comps to help break down the growth we saw. So, as you said, you asked about store closures or transfers there. It's consistent with the previous quarter. About 200 basis points helped us there.
starting to q four twenty twenty six is
north america margin as you just said the profit flow
through is much better than we expected in the fourth quarter beyond higher sales
what were the biggest drivers of the leverage
and then looking ahead what does guidance assume for the north america and international
operating margins next year and are there any unusual items that could make the quarterly
progression uneven
thanks chris so
starting to q four twenty twenty six is
Pricing and delivery were about half of the ticket, and then they attach and mix were the other half of a ticket. So, again, we had a 5.2% ticket.
in the US, and that was about half pricing delivery and about half attach and mix. As we move into FY27, we're going to wait a little bit more towards tickets.
ticket than transaction as we continue to see the strength of all the work the team's doing in Tatch and Mix. We continue to see really good.
progress both there in attach and mix. We'll see some price continue to come through. It'll be below CPI, and then the remainder of that comp growth will be in transactions.
in the U.S., and that was about half pricing delivery and about half attach and mix. As we move into FY27, we're going to wait a little bit more towards tickets.
ticket than transaction as we continue to see the strength of all the work the team's doing in attach and mix. We continue to see really good progress both there in attach and mix. We'll see some price continue to come through. It'll be below CPI. And then the remainder of that comp growth will be in transactions.
progress both there in attacks and attach and mix we'll see some
price continue to come through it'll be below cpi and then the remainder of that comp
transactions, continuing to be led by our great operations. Yeah, the only thing I would add to that is the thing that gives us a lot of confidence in kind of.
growth will be in transactions in us and that was about half
pricing delivery and about half attach and mix
as we move into f y twenty seven we're gonna wait a little bit more towards
of pushing the guidance up in 27 versus just a long-term guidance of three or better is the fact that we continue to have really good strength in transactions. You know, so that's the foundation.
ticket than transaction as we continue to see the strength of
all the work the team's doing in attach and mix
we continue to see really good progress both there in attacks and attach
foundational elements that are driving the business. And then I think we've made great progress in food attach and mix, as Kathy mentions. You know, on your question around new units, you know, the way I
and mix we'll see some price continue to come through it'll be below cpi
continue to be led by our great operations. Yeah, the only thing I would add to that is the thing that gives us a lot of confidence in kind of.
of pushing the guidance up in 27 versus just a long-term guidance of three or better is the fact that we continue to have really good strength in transactions. You know, so that's the foundational elements that are driving the business. And then I think we've made great progress in food attach and mix, as Kathy mentions. You know, on your question around new units, you know, the way I
and then the remainder of that comp growth will be in transactions
continue to be led by our great operations
would describe it is we've got clear line of sight on the 5,000. You know, obviously, as we get closer down the road, I'm guessing there's going to be more upside to that number.
yeah the the only thing i would add to that is the thing that
gives us a lot of confidence in kind of pushing the guidance
up in twenty seven versus just a long term guidance of three or better
But for now, as we've done all the market planning, we feel really good about saying what we see line of sight on the 5,000 additional units.
is the fact that we continue to have really good strength in transactions
you know so that's the foundational elements that are driving the business
and i think we've made great progress in food attach and mix as kathy mentions
would describe it as we've got clear line of sight on the 5,000. You know, obviously, as we get closer down the road, I'm guessing there's going to be more upside to that number.
you know on your question around new units you know the way i
But for now, we've kind of, as we've done all the market planning, we feel really good about saying we see line of sight on the 5,000 additional units. Your next question comes from Andrew Charles with TD Cowan. Please state your question. Great. Thank you very much. Just one quick clarification and then a question.
continue to be led by our great operations
Your next question comes from Andrew Charles with TD Cowan. Please state your question. Great. Thank you very much. Just one quick clarification and then a question.
yeah the the only thing i would add to that is the thing that
gives us a lot of confidence in kind of pushing the guidance
Curious, you know, what drove the expectation that 1Q North America same-store sales can run pretty consistent with 2Q to 4Q, given that there's an easier comp in the first quarter? And my real question.
up in twenty seven versus just a long term guidance of three or better
is the fact that we continue to have really good strength in transactions
you know so that's the foundational elements that are driving the business
is: you know, Brian, the proxy calls out a successful new platform launched in the U.S. by the end of the fiscal year. And I'm curious about the priorities laid out. What fits this criteria? You know, you've spoken in the past.
then i think we've made great progress in food attach and mix as kathy mentions
you know on your question around new units you know the way i would describe it is we've got
clear line of sight on the five thousand you know obviously
as we get closer down the road
what drove the expectation that 1Q North America same-store sales can run pretty consistent with 2Q to 4Q, given that there's an easier comp in the first quarter? And my real question.
is, Brian, the proxy calls out a successful new platform launched in the U. S. by the end of the fiscal year. And I'm curious to the priorities laid out. What fits this criteria? You've spoken in the past about how you've wanted the morning if the afternoon's going to be bigger focused. So perhaps the revamped afternoon food platform is going to satisfy that criteria. But curious if you could expand just more on your thoughts.
i'm guessing there's gonna be more upside to that number but for now you know we've
as we've done all the market planning we feel really good about
It's about how you've wanted the morning and the afternoon's gonna be your bigger focus. So perhaps the revamped afternoon food platform is going to satisfy that criteria. But curious if we can expand just more on your thoughts.
you know saying what we see line of sight on the five thousand additional units
So I'll start, Andrew, on the cadence of our comp guidance throughout the course of the year. Yes, Q1 is the easiest lap if you just look.
we'll describe it as we've got clear line of sight on the
five thousand you know obviously as we get closer down the road
guessing there's gonna be more upside to that number but for now you know we've
as we've done all the market planning we feel really good about
at last year. But if you look at absolute transactions, we were actually fairly consistent through the year. One thing the team's done a lot of work on is trying to take some of the seasonality out of our business.
you know saying what we see line of sight on the five thousand additional units
your next question comes from andrew charles
with td cowen please state your question
And so we have a strong product lineup that happens. The cadence of it is less, you know, in the past, we used to have, I think, a little bit more very distinct seasons. We've been trying.
great thank you very much just one quick clarification and then a
question
your next question comes from andrew charles with td cowen please state your question
trying to make sure that we smooth that out. You saw it a little bit last year, you'll see it a little bit more this year. But they worked really hard at pulling seasonality. And then the other thing is, I just look at the
great thank you very much just one
quick clarification and then a question curious what drove the expectation that
1q north america same store sales to run pretty consistent with
2q to 4q given that there's an easier comp in the first quarter
absolute transaction volume per quarter. It's actually far more consistent throughout the year. And so that's what gives us the guidance.
and my real question is brian the proxy calls out a successful new platform launch in the u s
by the end of the fiscal year
i'm curious the priorities laid out what fits this criteria you've spoken in past curious what
that we did, which is fairly consistent through the year, obviously, there'll be a little bit of variation. Yeah, and then to your question of platforms, you know, so like Protein would be an example of a platform.
drove the expectation that 1q north america same store sales to run pretty
consistent with q2 to 4q given that there's an easier comp in the first quarter
my real question is brian the proxy calls out a successful new platform
launch in the u s by the end of the fiscal year
platform. Obviously, the energy refreshers is an example of a platform. And then some of the work that we've done on the food front, you'll be seeing some.
i'm curious of the priorities laid out what fits this criteria you've spoken in the past about
one in the morning of the afternoon is a bigger focus so
perhaps the revamped afternoon food platform is going to satisfy that criteria but
some platforms roll out on the food side of things around our leveraging our bites business, moving that from just a morning idea to also an afternoon idea.
curious if could expand just more on your thoughts
about how you have one in the morning and the afternoon could be your focus so
that we did, which is fairly consistent through the year. Obviously, there'll be a little bit of variation. Yeah, and then to your question of platforms, you know, so like Protein would be an example of a platform.
platform. Obviously, the energy refreshers is an example of a platform. And then, some of the work that we've done on the food front, you'll be seeing some platforms roll out on the food side of things around our leveraging our bites business, moving that from just a morning idea to also an afternoon idea.
perhaps the revamped afternoon food platform is going to satisfy that criteria but
curious if you could expand just more on your thoughts
And then there's still opportunities on health and wellness to go beyond just protein. So we feel really good about the initiatives we've got coming down the pike on COLIP platforms.
so i'll start andrew on the the
cadence of our comp guidance throughout the course of the year
yes q one is the easiest lap if you just look at last year but if you look at absolute
and then also the platforms that we've already gotten out the door. So, you know, you'll continue to see us have both, I would call like LTO ideas and then also platform ideas.
transactions we were actually fairly consistent through the year
one thing the team's done a lot of work on is trying to take some of the seasonality out of our business
and so we have a strong product lineup that happens the cadence of it
ideas. And those working together are doing a nice job of driving transaction and sales. Thank you. And your next question comes from John.
is less you know in the past we used to have i think a little bit more very distinct
seasons we've been trying to make sure that we smooth that out
you saw it a little bit last year you'll see it a little bit more this year
John Ivanco with JPMorgan Chase and Company. Please state your question.
but they worked really hard at pulling seasonality
and then the other thing is i just look at the absolute transaction volume
per quarter it's actually far more consistent throughout the the year
and so that's what gives us the the guidance that we did which is
deliveries. And those working together are doing a nice job of driving transaction and sales. Thank you, and your next question comes from John.
John Ivanko with JP Morgan Chase and Company. Please state your question. Hi, thank you. I I wanted to talk about the implications of seven day a week delivery, which I think is also going to have twenty four hour fulfillment if it doesn't already. So Brian, you're Cindy, can you talk about the implications?
fairly consistent through the year obviously there'll be a little bit of variation
Which I think is also going to have 24-hour fulfillment if it doesn't already. So, Brian, you're sitting, can you talk about the implications?
yeah and then to your question of platforms you know so like protein would be an example of
implications specifically in the afternoon, but also the morning, and what that might mean for beverages, what might that mean for food, what that might mean to the grab-and-go case?
a platform obviously the energy refreshers is an example of a platform
and then some of the work that we've done
in on the food front you'll be seeing some platforms roll out on the
food side of things around our leveraging our bites business
case. In other words, how big of an unlock might we be just on the cusp of relative to the legacy Starbucks distribution platform into the store's back end? Thank you.
moving that from just a morning idea to also an afternoon idea
that we did which is fairly consistent through the year obviously there'll be a little bit of variation
you. Yeah, look, it's a great question. And we do believe supply chain is going to be a nice advantage for us once we get the replenishment scheme.
yeah and then to your question of platforms you know so like
protein would be an example of a platform obviously the energy refreshers
is an example of the platform and then some of the work that we've done
schedule there, we're getting closer on the daily deliveries, and we're going to continue to improve on the replenishment schedule. But yeah, it helps in exactly those areas that you talked about.
in on the food front you'll be seeing some platforms roll out on the
food side of things around our leveraging our bites business
moving that from just a morning idea to also an afternoon idea
about. Well, kind of, we have this mantra of we want to have the right product at the right place at the right time. And what this allows us to do is just that.
and then there's still opportunities on health and wellness to go beyond just protein
so we feel really good about the initiatives we've got coming down the pike on
call it platforms and then also the platforms that we've already gotten out the door so
Each of our coffee houses behave differently on various elements of the business, whether it's food or beverage that's in the cold case that you.
you know you'll continue to see us have both
i would call like lto ideas and then also platform ideas
and you know those working together are doing a nice job of driving transaction and sales
you can grab and go, whether it's the food platform that we heat up for people and give you that fresh food experience, or the beverages that we make kind of by craft.
thank you ann your next question comes from
john ivankoe with jpmorgan chase and company please state your question
hi thank you i wanted to talk about the implications of
craft for everybody. And to have the ability to get the daily deliveries within a signal for the replenishment within 24 hours is going to be a big advantage for us to make sure that we.
seven day a week deliveries and
those working together are doing a nice job of driving transaction and sales
thank you and your
next question comes from john ivankoe with jpmorgan chase and company
we keep all of those things in stock at the right cadence for our customers and our partners to serve it. So we believe there's still a lot of upside to be had there. And, you know, the
please state your question
hi thank you i wanted to talk about the implications of
seven day a week delivery which i think is also going to have
team's making great progress. We've made a lot of progress already on the daily deliveries, and we're going to be getting to the replenishment here in the next, I'll call it six to twelve months.
twenty four hour fulfillment if it doesn't already
so brian or cindy can you talk about the implication
which i think is also going to have twenty four hour fulfillment
Your next question comes from Lauren Silberman with Deutsche Bank. Please state your question. Hey, thanks for the question.
if it doesn't already so brian or cindy can you talk
about the implications specifically in the afternoon but also the morning
and what that might mean for beverages
what might that mean for food what that might mean to the grab and go case
congrats. So you guys have mentioned a couple of times that you're running ahead of schedule. I know approaching the low end of the fiscal 28 guide. What elements have been faster, like sales, margins, costs?
in other words how big of an unlock might we be just on the cusp of
The team's making great progress. We've made a lot of progress already on the daily deliveries, and we're going to be getting to the replenishment here in the next, I'll call it six to twelve months.
Your next question comes from Lauren Silberman with Deutsche Bank. Please state your question. Hey, thanks for the question, and congrats. So, you guys have mentioned a couple times that you're running ahead of schedule. I know approaching the low end of the fiscal 28 guide. But what elements have been faster, like sales, margins, costs?
relative to the legacy starbucks distribution platform into the stores back end
thank you
savings, anything else that we don't necessarily see? And then can we interpret this as potential upside to fiscal 28 targets? Thank you.
yeah look it's a great question and you know
we do believe supply chain is gonna be a nice advantage for us once we get
the replenishment schedule there we're getting closer on the
Congrats. So you guys have mentioned a couple of times that you're running ahead of schedule. I know approaching the low end of the fiscal 28 guide. What elements have been faster, like sales, margins, costs?
savings, anything else that we don't necessarily see? And then can we interpret this as potential upside to fiscal 28 targets? Thank you. Well, you know, look, the good news is you kind of listed off all the things that are ahead of schedule: sales, margins, and earnings. So, you know, that's why you see us.
daily deliveries and we're going to continue to improve on the replenishment schedule
but yeah it helps in exactly those areas that you talked about we'll
Look, the good news is you kind of listed off all the things that are ahead of schedule: sales, margins, and earnings. So that's why you see us.
of we have this mantra we wanna have the right product at the right place
savings, anything else that we don't necessarily see. And then, can we interpret this as potential upside to fiscal 28 targets? Thank you.
you know, look, the good news is you kind of listed off all the things that are ahead of schedule: sales, margins, and earnings. So, you know, that's why you see us guiding already to the low side of fiscal year 28. And look, the other thing I tell you is the guidance for fiscal year 28, I think we said this at Investor Day, it's just a point in time.
at the right time and what this allows us to do
is just that you know
Guiding already to the low side of fiscal year 28. And look, the other thing I tell you is the guidance for fiscal year 28, I think we said this at Investor Day, it's just a point in time.
each of our coffee houses behave differently on
know various elements of the business whether it's food or beverage that's in the
You know, look, the good news is you kind of listed off all the things that are ahead of schedule: sales, margins, and earnings. So, you know, that's why you see us.
guiding already to the low side of fiscal year 28. And look, the other thing I tell you is the guidance for fiscal year 28, I think we said this at Investor Day, it's just a point in time on our journey. Like we have no expectations that that's an end point. So our goal is obviously to always continue to figure out how we grow the business smart.
cold case that you can grab and go whether it's the food platform that you know we heat up
for people and give you you know that fresh food experience
on our journey. Like, we have no expectations that that's an end point. So, you know, our goal is obviously to always continue to figure out how we grow the business smart.
the beverages that we make kind of
smartly. And that's exactly what's happening. And we're doing it the right way through the fundamentals of operations, and then obviously surrounding it with, I think, the right innovation, whether it's digital, menu.
by craft for everybody and to have the ability to get the daily deliveries
within a signal for the replenishment within twenty four hours
is gonna be a big advantage for us to make sure that we keep all of those things in stock
menu, and then obviously, I think the creative solutions we're going to have in the asset, too. So, you know, I think we're hitting on all cylinders.
at the right cadence for our customers and our partners to serve it so
we believe there's still a lot of upside to be had there and you know
team's making great progress we've made a lot of progress early on the daily deliveries
and that's exactly what's happening. And we're doing it the right way through the fundamentals of operations, and then obviously surrounding it with, I think, the right innovation, whether it's digital, menu.
menu, and then obviously, I think the creative solutions we're going to have in the asset, too. So, you know, I think we're hitting on all cylinders.
we're gonna be getting to the replenishment here in the next you know call it six to twelve months
and that's why you heard me say really back to Starbucks as a strategy is switch gears from a turnaround plan to a growth plan. And I couldn't be more optimistic about where we're headed.
your next question comes from
And that's why you heard me say, really, back to Starbucks as a strategy is switch gears from a turnaround plan to a growth plan. And I couldn't be more optimistic about where we're headed.
lauren silberman with deutsche bank please state your question
headed. And your next question comes from Sharon Zacvia with William Blair. Please state your question. Hi, thanks. I'm curious.
hey thanks for the question and congrats so you guys have mentioned a couple of times that you're running ahead
schedule i know approaching the low end of the fiscal twenty twenty eight guide
what elements have been faster is it like sales margins cost team's making great progress
And that's why you heard me say really back to Starbucks as a strategy is switch gears from a turnaround plan to a growth plan. And I couldn't be more optimistic about where we're headed.
headed. And your next question comes from Sharon Zacvia with William Blair. Please state your question. Hi, thanks. I'm curious whether you're seeing a continued correlation between the scorecard and individual unit comp performance. And if you look at those small percentage of locations that are comping,
we've made a lot of progress already on the daily deliveries
and we're gonna be getting to the replenishment here in the next you know call it six to twelve months
And that's why you heard me say, really, back to Starbucks as a strategy is switch gears from a turnaround plan to a growth plan. And I couldn't be more optimistic about where we're headed.
headed. And your next question comes from Sharon Zacvia with William Blair. Please state your question. Hi, thanks. I'm curious whether you're seeing a continued correlation between the scorecard and individual unit comp performance. And if you look at those small percentage of locations that are comping,
your next question comes from
Whether you're seeing a continued correlation between the scorecard and individual unit comp performance. And if you look at those, you know, small percentage of locations that are compying.
copying negatively. Is that typically related to scorecard deficiencies and things you can do operationally, or are there more idiosyncratic issues?
lauren silberman with deutsche bank please state your question
hey thanks for the question and congrats so you guys have mentioned a couple of times that you're running ahead of
schedule i know approaching the low end of the fiscal twenty twenty eight guide
the good news is the growth scorecard continues to be a great indicator of performance. And I will tell you: the stores that we're not comping, they're
what elements have been faster is it like sales margins
cost savings anything else that we necessarily see
can we interpret this as potential upside to fiscal twenty twenty eight targets
thank you
negatively. Is that typically related to scorecard deficiencies and things you can do operationally, or are there more idiosyncratic issues?
the good news is the growth scorecard continues to be a great indicator of performance. And I will tell you: the stores that we're not comping, there are some idiosyncratic issues, you know, like the road is under construction, or we might have been moving delivery around to make sure we allocate delivery.
congrats so you guys have mentioned a couple of times that you're running ahead
There are some idiosyncratic issues, you know, like the road is under construction, or we might have been moving delivery around to make sure we allocate delivery.
of schedule i know approaching the low end of the fiscal twenty eight guide
what elements have been faster is it like sales margins cost savings
delivery to the right stores. And then there are a handful of stores that we know we need to be operating better, whether that means we need more stability in the team or
anything else that we don't necessarily see and then can we interpret this as potential upside
to fiscal twenty twenty eight targets thank you
well you you know look the good news is you kinda listed off all the things that are
or we may have some issues with above-store leadership. So, you know, there are opportunities. The good news is the scorecard gives us clear feedback, so we know where to spend our time on those stores.
ahead of schedule you know sales margins and earnings so
you know that's why you know you see us you know look
the good news is you kinda listed off all the things that are ahead of schedule you know sales margins and
stores. And I think our operators and Mike and the team are doing a great job of dialing that in going forward. So, it's going to continue to be the tool that we use. Actually, just as an
earnings so you know that's why
you see us savings anything else that we don't necessarily see
and then can we interpret this as potential upside to fiscal twenty twenty eight targets
thank you
an aside, I got a great email just the other day from one of our coffee house leaders. Her name's Maddie. She runs a store in northern Idaho. She told me.
well you you know look the good news is you kinda listed off all
things that are ahead of schedule you know sales margins and earnings
we may have some issues with above store leadership. So, you know, there are opportunities. The good news is the scorecard gives us clear feedback, so we know where to spend our time on those stores.
stores. And I think our operators and Mike and the team are doing a great job of dialing that in going forward. So, it's going to continue to be the tool that we use. Actually, just as an aside, I got a great email just the other day from one of our coffee house leaders. Her name's Maddie. She runs a store in Northern Idaho. She told me,
so you know that's why you know you see us guiding already to the low
from when we started Green Apron Service, or I'm sorry, the gross scorecard with Green Apron Service. She was one of the stores that was like number 1,574. Her goal was to get in.
side of fiscal year twenty eight and look the the other thing i'd tell you is
the guidance for fiscal year twenty eight i think we said this at investor day
it's just a point in time guiding already to the low side of
into the top five. She sent me an email just this week to let me know that she's now number three in the entire system. So, of course, I had to call her and find out what she did. And you know what she told me? She focused.
fiscal year twenty eight and look the the other thing i'd tell you is
the guidance for fiscal year twenty eight i think we said this at investor day
it's just a point in time you know look the good news is you kinda listed off all the things that are ahead of schedule
you know sales margins and earnings so
focused on green apron service and she focused on that growth scorecard. And as a result, Mike and I are going to be heading out to go see her because I want to celebrate leadership like that. And we've got
that's why you see us guiding already to the low side of
fiscal year twenty eight and look at the the other thing i'd tell you is
the guidance for fiscal year twenty eight i think we said this at investor day
got more of those stories every day at Starbucks. So it's a very powerful tool, it's a very effective tool, and it's also a tool that I think our coffee house leaders understand.
it's just a point in time on our journey like we have no expectations that that's an endpoint
so you know our goal is obviously
to always continue to figure how we grow the business smart time on our journey
understand how to use and use it in a way that's very productive and enables them to lead correctly. Your next question comes from Jacob
like we have no expectations that that's an endpoint so
you know our goal is obviously to always continue to figure out how we grow the business
smartly and that's exactly what's happening and we're doing it the right way
Aiken Phillips with Melius Research. Please state your question. Hey, good afternoon, everybody. So, with CapEx at approximately 5% in sales next year,
through the fundamentals of operations and then obviously surrounding it with i think the right
innovation whether it's digital menu
then obviously i think the creative solutions we're going to have in the asset too so
next year. I mean if developments could accelerate in in in the following year. How much of the spending is establishes capabilities that can kind of support the next phase of growth?
you know i think we're hitting on all cylinders lee
and that's exactly what's happening and we're doing it the right way through the fundamentals of operations
and then obviously surrounding it with i think the right innovation whether it's digital
menu
growth? And can the higher opening pace fit within the similar capital envelope, or should we expect another step up? Thank you, Ken. Yeah, hi. So we're.
then obviously i think the creative solutions we're going to have in the asset too so
you know i think we're hitting on all cylinders
this next year, we're going to be, as you would look at, I think when you see our full filings, our capex was actually a lower percent of revenue this last year. Really, I think.
and that's why you heard me say really back to starbucks as a strategy as
switch gears from a turnaround plan to a growth plan
and you know i couldn't be more optimistic about where we're headed
and that's why you heard me say really back to starbucks as a strategy to switch gears
think, reflecting those fewer new openings. As we move into this next year, we are ramping up our uplifts. So, we want to bring that great coffee house experience to more and more stores. As we said,
from a turnaround plan to a growth plan and
know i couldn't be more optimistic about where we're headed
and your next question comes from
we're going to continue to increase that. That's where some of the CapEx will go this next year. And then, obviously, supporting the new store openings that we've communicated. Going beyond that,
sharon zackfia with william blair please state your question hi thanks
i'm curious and that's why you heard me say really back to
starbucks as a strategy to switch gears from a turnaround plan to a growth plan
and you know i couldn't be more optimistic about where we're headed
though, into the following year, we still believe we should be in that 5% of revenue range, plus or minus, and will continue to.
and your next question comes from
sharon zackfia with william blair please state your question
hi thanks i'm curious whether you're seeing a continued correlation
continue to use that as our guide. When you ask about what amount is going for new capabilities, maybe for the future, it's actually fairly small.
between the scorecard and individual
unit comp performance and if you look at those
small percentage of locations that are comping and that's why you heard me say really back to
If you think about where our supply chain is, we don't need a lot of incremental capital. There's some, obviously, to continue to invest there, but it's not.
starbucks as a strategy to switch gears from a turnaround plan to a growth plan
and you know i couldn't be more optimistic about where we're headed
and your next question comes from
not to use that as our guide. When you ask about what amount is going for new capabilities, maybe for the future, it's actually fairly small.
sharon zackfia with william blair please state your question
If you think about where our supply chain is, we don't need a lot of incremental capital. There's some, obviously, to continue to invest there, but it's not massive amounts. Traditionally, our biggest capital goes into the support of our coffee houses. Your next question.
hi thanks i'm curious whether you're seeing a continued
correlation between the scorecard and individual
Massive amounts. Traditionally, our biggest capital goes into the support of our coffee houses. Your next question.
unit comp performance and if you look at those
If you think about where our supply chain is, we don't need a lot of incremental capital. There's some, obviously, to continue to invest there, but it's not.
not massive amounts. Traditionally, our biggest capital goes into the support of our coffee houses. Your next question comes from John Tower with Citi. Please state your question. Great, thanks for taking the question. Just curious, maybe, you know, obviously, uplifts are a big part of the story, or a big
small percentage of locations that are comping whether you're seeing a continued correlation
between the scorecard and individual
If you think about where our supply chain is, we don't need a lot of incremental capital. There's some, obviously, to continue to invest there, but it's not.
not massive amounts. Traditionally, our biggest capital goes into the support of our coffee houses. Your next question comes from John Tower with Citi. Please state your question. Great, thanks for taking the question. Just curious, maybe, you know, obviously, uplifts are a big part of the story, or a big
unit comp performance and if you look at those
small percentage of locations that are comping negatively
comes from John Tower with City. Please state your question. Great. Thanks for taking the question. I'm just curious, maybe, you know, obviously, uplifts are a big part of the story or a big
bigger part of the story next year than they were in 26. Curious if you could kind of shed some light on what you're seeing with respect to absolute lifts on the stores so far, how it's actually.
is that typically related to scorecard deficiencies and things you can do operationally
or are there more idiosyncratic issues
so yeah the good news is the gross scorecard continues to be a great
showing up in the business. Are you seeing a nice balance between traffic and ticket, or is one kind of over-indexing? And then, just a second question: you know, you'd mentioned the idea of.
of performance and i will tell you the stores
that we're not comping negatively
is that typically related to scorecard deficiencies and things you can do operationally
or are there more idiosyncratic issues
of being more asset light across the world outside of North America. So when thinking about the Japanese business, do you guys have any thoughts on if and when you do
so yeah the good news is the gross scorecard continues to be a great
of performance and
showing up in the business, are you seeing a nice balance between traffic and ticket, or is one kind of over-indexing? And then just a second question: you know, you'd mentioned the idea of.
will tell you the stores that we're not comping there are some media
of being more asset-like across the world outside of North America. So, you know, when thinking about the Japanese business, do you guys have any thoughts on if and when you do something with that and turn it into a license model? So, to well, I'll start with the first part of your question on the uplifts. The uplifts continue to do a good thing.
idiosyncratic issues like
the road is under construction or
something with that and turn it into a license model? So, to start with the first part of your question on the uplifts, the uplifts continue to do a good.
you know we might have been moving delivery around to make sure we allocate delivery there are some media
idiosyncratic issues you know like
exactly what we want. It's brand building and it's transaction driving, and it shows up in the total results for the business. So I'm really excited for the fact that we're.
we're going to get going and be able to do more than 2,000 in this coming fiscal year. And so the feedback, and I don't know if you've had the opportunity to go into one of our coffee houses.
houses that have gone through an uplift. But the feedback, both from our partners and our customers, is this feels like Starbucks again. Like, thank you for bringing back my third place. And, uh,
get going and be able to do more than 2,000 in this coming fiscal year. And so the feedback, and I don't know if you've had the opportunity to go into one of our coffee houses.
houses that have gone through an uplift. But the feedback, both from our partners and our customers, is this feels like Starbucks again. Like, thank you for bringing back my third place. And so it does a lot for, I think, the brand. And then, obviously, we love what we're seeing from the impact on transactions and then, obviously, the total sales results.
and get going and be able to do more than 2,000 in this coming fiscal year. And so the feedback, and I don't know if you've had the opportunity to go into one of our coffee houses.
houses that have gone through an uplift. But the feedback, both from our partners and our customers, is this feels like Starbucks again. Like, thank you for bringing back my third place. And so it does a lot for, I think, the brand. And then, obviously, we love what we're seeing from the impact on transactions and then, obviously, the total sales results.
get going and be able to do more than two thousand in this coming fiscal year
So it does a lot for, I think, the brand. And then obviously, we love what we're seeing from the impact on transactions, and then obviously, the total sales result.
So, that by all accounts is a winner for us, and we're going to keep driving that really hard. To your question on international, the thing I would tell you is: you know, we had another great.
and so the feedback and i don't if you've had the opportunity to go into
of our coffee houses that have gone through an uplift but the feedback both from our
partners and our customers is
this feels like starbucks again like thank you for bringing back my third place
great year international. You know, I think this is now seven consecutive quarters of comp growth. If you exclude China, our revenue was up five percent. Uh, so really.
and so it does a lot for i think the brand
and then obviously we love what we're seeing from the
on transactions and then obviously the total sales result so it does a lot
the team did a tremendous job around the world. And I'm really excited about the growth opportunities that are in front of us. Specifically, to Japan, I got to give the Japan team a lot of credit.
for i think the brand and then obviously we love what we're seeing from
credit. So, that, by all accounts, is a winner for us, and we're going to keep driving that really hard. To your question on international, the thing I would tell you is: you know, we had another great.
great year international. You know, I think this is now seven consecutive quarters of comp growth. If you exclude China, our revenue was up 5%. So, really, the team did a tremendous job around the world. And I'm really excited about the growth opportunities that are in front of us. Specifically to Japan, I got to give the Japan team a lot of credit.
the impact on transactions and then obviously the total sales results so
that by all accounts is a is a winner for us and we're gonna keep driving that really hard
credit. They had another terrific year, and it's a really great business. And I think we've said this consistently: you know, we always evaluate what is the right ownership strategy.
to your question on international the thing i would tell you is you know we had another
year international. You know, I think this is now seven consecutive quarters of comp growth. If you exclude China, our revenue was up 5%. So really,
the team did a tremendous job around the world. And I'm really excited about the growth opportunities that are in front of us. Specifically to Japan, I got to give the Japan team a lot of credit. They had another terrific year, and it's a really great business. And I think we've said this consistently: you know, we always evaluate what is the right ownership strategy.
great year international you know i think this is now seven consecutive quarters of comp growth
And if and when the time comes where that should change, you know, we'll share that with you. But I'm really proud of the way that the team delivered. And I'm really proud of how our international business is.
if you exclude china our revenue was up five percent so
really the team did a tremendous job around the world
and i'm really excited about the growth opportunities that are in front of us
is performing. And I'm really confident for the new unit growth that we've got coming down for this fiscal year and into the out years.
specifically to japan i gotta give the japan team a lot of so
that by all accounts is a is a winner for us and we're gonna keep driving that really hard
to your question on international the thing i would tell you is
If and when the time comes where that should change, you know, we'll share that with you. But I'm really proud of the way that the team delivered, and I'm really proud of how our international business is.
is performing. And I'm really confident for the new unit growth that we've got coming down for this fiscal year and into the out years. Thank you. And your next question comes from Peter Salah with BTIG. Please state your question. Great. Thanks for taking the question.
you know we had another great year international you know
i think this is now seven consecutive quarters of comp growth
Thank you. And your next question comes from Peter Salah with BTIG. Please state your question. Uh great, thanks for taking the question.
if you exclude china our revenue was up five percent
so really the team did a tremendous job around the world
and congrats on the performance. I wanted to ask about the rewards program. You've had a couple of quarters now under your belt with the change in the rewards.
and i'm really excited about the growth opportunities that are in front of
specifically to japan i gotta give the japan team a lot of credit they had another terrific year
and it's a really great business and i think we've said this consistently you know
rewards program. I know you mentioned thirty six million active users, but can you give us a little bit more sense on how that they're performing in terms of frequency, spend,
we always evaluate what is the right ownership strategy every year
spend. Thank you. And your next question comes from Peter Salah with BTIG. Please state your question. Great. Thanks for taking the question.
and congrats on the performance. I I wanted to ask about the rewards program. You've had a couple of quarters now under your belt with the change in the rewards program. I know you mentioned thirty six million active users, but can you give us a little bit more sense on how that they're performing in terms of frequency, spend,
international you know i think this is now seven consecutive quarters of comp growth
if you exclude china our revenue was up five percent so
any more detail you can provide there would be great. Thanks. Yeah, look, that is one of those initiatives that continues to, I think, meet and exceed our.
really the team did a tremendous job around the world
and i'm really excited about the growth opportunities that are in front of
specifically to japan i gotta give the japan team a lot of credit they had another terrific year
our expectations. The way we've done the new tiering, you know, with green, gold, and reserve, we're continuing to see people move up from green.
and it's a really great business and i think we've said this consistently you know
we always evaluate what is the right ownership strategy and when
if and when the time comes where that should change you know we'll share that with you but
green to gold and gold to reserve. And that's really driven by first and foremost frequency. You know, and then I think as we get better with our personal.
i'm really proud of the way that the team delivered
and i'm really proud of how our international business is performing
and you know i'm really confident for the new unit growth that we've got coming down
for this fiscal year and into the out years
personalization, we're also going to see ticket continue to have an impact. But the early days, the first big moves we're seeing are in the frequency world.
when if and when the time comes where that should change
you know we'll share that with you but i'm really proud of
the way that the team delivered and i'm really proud of how our international business is performing
world. So, not surprising, you know, a lot of the new users that first come into green start out at a lower frequency level. And then, as they spend more time in the program, we see their frequency levels increase, and then we see people move.
and you know i'm really confident for the new unit growth that we've got coming down
for this fiscal year and into the out years
thank you and your next question comes from
moving up from green to gold and obviously gold to reserve. So the program is working exactly the way we would hope. Customers are giving us feedback that they're enjoying the program.
peter saleh with btig please state your question
great thanks for taking the question
thank you and your next question comes from peter saleh with
the program. They love being able to redeem these stars at 60 stars for the $2 offer. And, you know, the team's doing a great job of.
btig please state your question
great thanks for taking the question and congrats on
the performance
i wanted to ask about the rewards program you've had a couple of quarters now
figuring out how to take advantage of what is the next step in the evolution of that rewards program, which is going to be more around additional personalization.
under your belt with the change in the rewards program i know you mentioned thirty six million
Moving up from green to gold and obviously gold to reserve. So the program is working exactly the way we would hope. Customers are giving us feedback that they're enjoying the program.
the program. They love being able to redeem these stars at 60 stars for the $2 offer. And, you know, the team's doing a great job of figuring out how to take advantage of what is the next step in the evolution of that rewards program, which is going to be more around additional personalization.
active users but can you give us a little bit more sense on
how that they're performing in terms of frequency spend
Thank you. And your next question comes from Margaret May Binstock with Wolf Research. Please state your question. Hi, thank you for taking my question.
thank you and your next question comes from
peter saleh with btig please state your question
great thanks for taking the question and congrats on the
performance
Brian, I know you've talked about creating a second peak in the afternoon as a priority for fiscal 27. Can you talk a little bit about where the afternoon stands today, perhaps versus a
i wanted to ask about the rewards program you've had a couple of quarters now
figuring out how to take advantage of what is the next step in the evolution of that rewards program, which is going to be more around additional personalization.
Thank you. And your next question comes from Margaret May Binstock with Wolf Research. Please state your question. Hi, thank you for taking my question. Brian, I know you've talked about creating a second peak in the afternoon as a priority for fiscal 27. Can you talk a little bit about where the afternoon stands today, perhaps versus a year?
under your belt with the change in the rewards program i know you mentioned thirty six million dollars active
a year ago. What you see the biggest drivers are from here on the afternoon, and any update on how energy refreshers have trended since you launched. Thank you.
users but can you give us a little bit more sense on
how that they're performing in terms of frequency spend
Yeah. Thank you. And your next question comes from Margaret May Binstock with Wolf Research. Please state your question. Hi, thank you for taking my question.
Brian, I know you've talked about creating a second peak in the afternoon as a priority for fiscal 27. Can you talk a little bit about where the afternoon stands today, perhaps versus a year ago? What you see the biggest drivers are from here on the afternoon, and any update on how energy refreshers have trended since you launched? Thank you.
any more detail you can provide there would be great
thanks
yeah look that is a one of those
thanks for the question. You know, this is something that I'm really excited about. We're kind of in the early days of a lot of our efforts, but one of the things that's been really great is with the upgrades.
initiatives that continues to i think meet and exceed our expectations
the way we've done the new
tiering you know with green gold and reserve we're continuing to see
that we've made to our food and our pastry case, the biggest place where we've seen an increase of attach has been in the afternoon, in the PM. You know, so we've seen a nice little pickup.
people move up from green to gold and gold to reserve
and that's really driven by first and foremost frequency
you know and then i think as we get better
pickup in afternoon attach. The refreshers program, the thing that's great is, and we still have more work to do on this, but energy has actually skewed more.
with our personalization we're also gonna see ticket continue to
have an impact but the early days the first big moves were
seeing on our in the frequency world so not surprising you know a lot of the new users
more towards the morning, but the fact now that you can get caffeine-free refreshers is driving some nice growth in the afternoon. And we've got some work coming down this fiscal year where you'll see us.
first come into green start out at a lower frequency level then as
they spend more time in the program we see their frequency levels increase
as that we've made to our food and our pastry case, the biggest place where we've seen an increase of attach has been in the afternoon, in the PM. So we've seen a nice little pickup
pickup in afternoon attach. The refreshers program, the thing that's great is, and we still have more work to do on this, but energy has actually skewed more towards the morning. But the fact now that you can get caffeine-free refreshers is driving some nice growth in the afternoon. And we've got some work coming down this fiscal year where you'll see.
and then we see people moving up from you know green to gold and obviously gold to reserve so
you know the program is working exactly the way
us now highlight for people that there is a caffeine-free refresher program, which I think you're going to see play really well in the afternoon.
would hope customers are giving us feedback that they're enjoying the program
they love being able to redeem the stars at sixty
sixty stars for the two dollar offer and
work towards the morning. But the fact now that you can get caffeine-free refreshers is driving some nice growth in the afternoon. And we've got some work coming down this fiscal year where you'll see us.
us now highlight for people that there is a caffeine-free refresher program, which I think you're going to see play really well in the afternoon.
also have some work around a tea platform where we're going to put some health and wellness into our teas, which I'm really excited about. And so we're making
know the team's doing a great job of figuring out how to nail take advantage of what is the next step
making some work around a T platform where we're going to put some health and wellness into our Ts, which I'm really excited about. And so, we're making
in the evolution of that rewards program which is gonna be more around additional personalization
now highlight for people that there is a caffeine-free refresher program, which I think you're going to see play really well in the afternoon.
also have some work around a T platform where we're going to put some health and wellness into our Ts, which I'm really excited about. And so we're making really great progress in the afternoon. You know, TSDs are up versus a year ago. And I think you heard me say this in our early remarks: they're up all day in every day part.
moving up from you know green to gold and obviously gold to reserve so
know the program is working exactly the way
let's now highlight for people that there is a caffeine-free refresher program, which I think you're going to see play really well in the afternoon. We also have
also have some work around a T platform where we're going to put some health and wellness into our Ts, which I'm really excited about. And so we're making really great progress in the afternoon. You know, TSDs are up versus a year ago. And I think you heard me say this in our early remarks: they're up all day in every day part.
would hope customers are giving us feedback that they're enjoying the program
they love being able to redeem these stars at sixty
Really great progress in the afternoon. You know, TSDs are up versus a year ago. And I think you heard me say this in our early remarks: they're up all day in every day part.
but it's great to see that the morning is increasing, the afternoon is increasing, and the initiatives that we've targeted to the afternoon are actually working the way we'd hope they would work.
sixty stars for the two dollar offer and
know the team's doing a great job of figuring out how to take advantage of what is the next step
in the evolution of that rewards program which is gonna be more around
additional personalization
Maybe, sorry, maybe I'll just put a plug in as well for another favorite in the afternoon: our matcha business and our matcha platform. Our matcha businesses.
Really great progress in the afternoon. You know, TSDs are up versus a year ago. And I think you heard me say this in our early remarks: they're up all day in every day part.
thank you and your next question comes from margaret may bienstok with
but it's great to see that the morning is increasing, the afternoon is increasing, and the initiatives that we've targeted to the afternoon are actually working the way we'd hope they would work. Maybe, sorry, maybe I'll just put a plug in as well for another favorite in the afternoon: our matcha business and our matcha platform. Our matcha business is.
wolfe research please state your question
hi thank you for taking my question
is now over a billion-dollar platform, and it's growing tremendously year over year. It's what started as probably just a more simple matcha beverage. We now almost
brian i know you've talked about creating a second peak in the app
afternoon as a priority for fiscal twenty twenty seven can you talk a little bit about
where the afternoon stands today perhaps versus a year figuring out how to take advantage of what is the next
maybe. Sorry, maybe I'll just put a plug in as well for another favorite in the afternoon: is our matcha business and our matcha platform. Our matcha businesses.
is now over a billion-dollar platform, and it's growing tremendously year over year. It's what started as probably just a more simple matcha beverage. We now, almost everyone, puts a cold foam on it, and it is sought after more often in the afternoon. So, that's also been a great addition as we continue to evolve the matcha business.
step in the evolution of that rewards program which is gonna be more around
additional personalization
Everyone puts a cold foam on it, and it is sought after more often in the afternoon. So that's also been a great addition as we continue to evolve the matcha.
thank you and your next question comes from margaret may bienstok with
matcha business. Yeah, actually, as you mentioned, the other thing to think about, too, for the afternoon that's been great is our cold beverage innovation has really connected. And kind of to Kathy's point,
wolfe research please state your question
hi thank you for taking my question brian i know you've talked about creating a
second peak in the afternoon as a priority for fiscal twenty twenty seven
point, those cold beverages, a lot of them have cold foam. So, you know, as we talk about the mix that we're seeing, the combination of customers moving to cold, which are
can you talk a little bit about where the afternoon stands today perhaps versus a year ago
what you see the biggest drivers are
from here on the afternoon and any update on how energy refreshers have trended since you
launched thank you
yeah
also results in usually a little bit bigger size. And then the idea of modifying with cold foam, whether it's matcha, cold brew, you know, iced coffee.
thank you and your next question comes from margaret may bienstok with
wolfe research please state your question
hi thank you for taking my question brian i know you've talked about creating an
or iced Americanos continues to see a really nice impact in the afternoon. Thank you.
second peak in the afternoon as a priority for fiscal twenty twenty seven
can you talk a little bit about where the afternoon stands today perhaps versus a year ago
what you see the biggest drivers are
last question comes from Brian Bittner with Oppenheimer and Company. Please state your question. Thanks. Thanks for sneaking me in.
from here on the afternoon and any update on how energy refreshers have trended since you launched
thank you
yeah thanks for the question you know this is something that i'm really excited about we're
the green apron service investments really have been fully in the base for some time, it's look, it's clearly was the right strategy. That's obvious. But
kind of in the early days of a lot of our efforts
one of things that's been really great is with the upgrades that we've made to our food
and our pastry case the biggest place where we've seen an increase of
attach has been in the afternoon in the pm you know so we've seen a nice little pickup
is there now potentially an opportunity, Brian, to go back and surgically reanalyze the footprint and potentially see if maybe there's pockets where you can find opportunities?
in afternoon attach
the refreshers program
the thing that's great is and we we still have more work to do on this but
energy has actually skewed more towards the morning
opportunities to perhaps get more efficient now that you've had time with all this learning? And if so, could this potentially be a lever for maybe additional opportunities?
but the fact now that you can get caffeine free refreshers
is driving some nice growth in the afternoon and we've got some work coming down the
this fiscal year where you'll see us that we've made to our food and our pastry case
operating leverage moving forward. Thanks. Yeah, thanks for your question. You know, and I couldn't agree more that the Green Apron Service Labor Investment was the absolute.
the biggest place where we've seen an increase of attach has been in the afternoon in the pm
you know so we've seen a nice little pickup in afternoon attach
the refreshers program the thing that's great is
absolute right thing for the business. You know, the thing that's great to see is, and I'm going to get a little technical with you here, but we've got right now a three-hour peak in the morning, and the good
and we we still have more work to do on this but energy has actually
skewed more towards the morning but the fact now that you can get caffeine free refreshers
is driving some nice growth in the afternoon and we've got some work coming down the
good news is the way we're seeing the business respond to being staffed, deployed correctly in the morning, it's giving us confidence that that three-hour peak can actually become a four-hour peak.
this fiscal year where you'll see us now highlight for people
that there is a caffeine free refresher program
which i think you're going to see play really well in the afternoon
peak in the morning. And the reason why that's important is obviously we're earning our way into having additional labor to support more transactions at a peak-type performance.
we also towards the morning but the fact now that you can get caffeine free refreshers
is driving some nice growth in the afternoon and we've got some work coming down the
this fiscal year where you'll see us now highlight for people that there is a a
And I think you're going to see the same thing happen in the afternoon. You know, it'll start out as an hour, and then we'll stretch it into two hours, and then ideally it'll get to three hours. And if you look at Starbucks historically,
caffeine free refresher program which i think you're gonna see play really well
in the afternoon we also have some work around a
tea platform where we're gonna put some health and wellness into our teas
you know, way back when we actually had a four-hour morning peak. So we are getting back to what we know we can do. And you know, that is what I get excited about. And that's when you mentioned, like,
which i'm really excited about and so we're making up some work
in the morning. And the reason why that's important is obviously we're earning our way into having additional labor to support more transactions at a peak type performance.
And I think you're going to see the same thing happen in the afternoon. You know, it'll start out as an hour, and then we'll stretch it into two hours, and then ideally it'll get to three hours. And if you look at Starbucks historically, you know, way back when we actually had a four-hour morning peak. So we are getting back to what we know we can do. And, you know, that is what I get excited about. And that's when you mentioned, like,
around a tea platform where we're gonna put some health and wellness
into our teas which i'm really excited about
getting surgical. That's what I think about getting surgical, which is driving and extending the peaks so that we give customers better service, and our partners are staffed and deployed.
and so we're making snoopy highlight for people
that there is a a caffeine free refresher program
which i think you're going to see play really well in the afternoon
deployed to meet the demand that we know and see at those times of day. So we're going to continue to fine-tune it, but I really think we're fine-tuning it from a standpoint of driving more growth.
we also have some work around a tea platform where we're gonna put some health and wellness
into our teas which i'm really excited about
and so we're making really great progress in the afternoon you know
tsds are up
versus year ago
growth, more throughput, and bigger peaks. So I think that was the last question. Yes, that was the last question. I'll turn it over to Brian Nichols for closing remarks.
think you heard me say this in our early remarks they're up all day in every day part
Getting surgical, that's what I think about getting surgical, which is driving and extending the peaks so that we give customers better service, and our partners are staffed and deployed.
deployed to meet the demand that we know and see at those times of day. So we're going to continue to fine-tune it, but I really think we're fine-tuning it from a standpoint of driving more growth, more throughput, and bigger peaks. So I think that was the last question. Yes, that was the last question. I'll turn it over to Brian Nichols for closing remarks.
now highlight for people that there is a
a caffeine free refresher program which i think you're gonna see
remarks. Okay. So, look, thanks everybody for your time. You know, I'd like to wrap up. And there's a couple things I just want to leave you with. First, we had
play really well in the afternoon we also have some work
around a tea platform where we're gonna put some health and wellness
into our teas which i'm really excited about
a terrific quarter and a great year, okay, because we got back to I think winning on the fundamentals, and as a result, our core business is stronger, uh, we are ahead of schedule.
and so we're making really great progress in the afternoon you know ts
tsds are up
versus year ago
think you heard me say this in our early remarks they're up all day in every daypart
really great progress in the afternoon you know tsds are up
schedule, and the improvements we've made are going to be lasting improvements because they're built on the fundamentals of the business. The second thing is, back to Starbucks, I mentioned this earlier.
versus year ago
think you heard me say this in our early remarks they're up all day in every day part
but it's great to see that
it started as a turnaround plan. It really is now our growth plan. We've delivered five consecutive quarters of positive comps, three consecutive quarters of margin expansion. You know, we're seeing.
morning is increasing the afternoon is increasing
and the initiatives that we've targeted to the afternoon are actually working the way we'd hoped they would work
maybe sorry maybe i'll just put a plug in as well for another
seeing the TSDs perform in the peaks, both in the morning, the afternoon, and all day. So we're continuing to feel really confident in what our growth plan is all about.
favorite in the afternoon is our matcha business and our matcha platform
our matcha business is really great progress in the afternoon you know tsds are up
versus year ago
think you heard me say this in our early remarks they're up all day in every day part
then the third thing is: you know, I think it's really important as we look at fiscal year 27, we're focused on delivering consistent comp performance that's going to be driven by.
but it's great to see that
morning is increasing the afternoon is increasing
and the initiatives that we've targeted to the afternoon are actually working the way we'd hoped they would work
I think, the fundamentals of the business with great innovation, both in menu, digital, and then obviously across our assets. So we know when we get really
maybe maybe i'll just put a plug in as well for another
favorite in the afternoon is our matcha business and our matcha platform
our matcha business is now over a billion dollar platform and it's growing
Then the third thing is: you know, I think it's really important as we look at fiscal year 27, we're focused on delivering consistent comp performance that's going to be driven by.
I think, the fundamentals of the business with great innovation, both in menu, digital, and then obviously across our assets. So, we know when we get really good top line, we have the ability to expand the bottom line. And I think we demonstrated that as we closed out fiscal year 26. And I think that's what you're going to continue to see us do going forward. So,
tremendously year over year it's which started as probably just a more simple matcha
And then the third thing is: you know, I think it's really important as we look at fiscal year 27, we're focused on delivering consistent comp performance that's going to be driven by.
I think, the fundamentals of the business with great innovation, both in menu, digital, and then obviously across our assets. So, we know when we get really good top line, we have the ability to expand the bottom line. And I think we demonstrated that as we closed out fiscal year 26. And I think that's what you're going to continue to see us do going forward. So,
beverage we now almost maybe maybe i'll just
put a plug in as well for another
really good top line. We have the ability to expand the bottom line. And I think we demonstrated that as we closed out fiscal year 26, and I think that's what you're going to continue to see us do going forward.
So we've got a clear strategy. Really proud of our teams in every single coffee house. You know, I think the Seattle Support Center is.
favorite in the afternoon is our matcha business and our matcha platform
our matcha business is now over a billion dollar platform and it's growing
tremendously year over year it's which started as probably just a more simple matcha
dialed in and focused on absolutely the right work. And we've got a growth plan that we're going to continue to execute and deliver durable results. So I'm super excited about what's ahead.
beverage we now almost everyone puts a cold foam on it
and it is sought after more often in the afternoon so
that's also been a great addition as we continue to evolve
We've got a clear strategy. Really proud of our teams in every single coffee house. I think the Seattle Support Center is.
dialed in and focused on absolutely the right work. And we've got a growth plan that we're going to continue to execute and deliver durable results. So I'm super excited about what's ahead. The other thing I'll let you know, too, is holiday kicks off next week. And I've got an insider's look at what our merchandising looks like.
the matcha everyone puts a cold foam on it and it is
sought after more often in the afternoon so that's also been a great addition in
The other thing I'll let you know, too, is holiday kicks off next week. And I've got an insider's look at what our merchandising looks like.
we continue to evolve the matcha business
yeah actually as as you mentioned the other thing to think about too for the afternoon that's been great is
for that. All the merchandise looks fabulous. I haven't been here that long, but I think it's the best I've ever seen. So I can't wait to get out of the stores next week, see the stores turn red.
our cold beverage innovation has really connected
and kinda to kathy's point those cold beverages a lot of them have cold foam
so you know as we talk about the mix that we're seeing
with the great holiday merchandise. And if you've never had a tiramisu latte, get ready to have a tiramisu latte from Starbucks because I think that's also fabulous.
the combination of customers moving to cold
also results in usually a little bit bigger size and then the idea of modifying with
cold foam whether it's matcha cold brew know iced coffee
hopefully, you can get out there, celebrate with your family and friends. I know I'll be out there celebrating with our partners as we launch holiday. So, look forward to seeing everybody in a few months.
or iced americanos continues to see a really nice
nice impact in the afternoon
thank you and the last question
and I'm sure we'll be talking soon. So, thank you, and take care. This concludes Starbucks' fourth quarter and full fiscal year 2026 conference call.
comes from brian bittner with oppenheimer and company
please state your question
with the great holiday merchandise. And if you've never had a tiramisu latte, get ready to have a tiramisu latte from Starbucks because I think that's also fabulous. So
hopefully, you can get out there, celebrate with your family and friends. I know I'll be out there celebrating with our partners as we launch holiday. So, look forward to seeing everybody in a few months, and I'm sure we'll be talking soon. So, thank you, and take care. This concludes Starbucks' fourth quarter and full fiscal year 2026 conference.
thanks for sneaking me in question is now that the green apron
conference call. You may now disconnect.
service investments really have been fully in the base for some time it's
look it's clearly was the right strategy
that's obvious but is there now potentially an
opportunity brian to go back and surgically reanalyze the
and potentially see if maybe there's pockets
where you can find opportunities to perhaps get more efficient
now that you've had time with all this learning
and if so could this potentially be a lever for
maybe additional operating leverage moving forward
thanks
yeah thanks for your question you know and i couldn't agree more that
the green apron service labor investment was the absolute right thing for the business
you know the thing that's great to see is and i'm gonna get a little technical with you here but
you know we've got right now a three hour peak in the morning
and the good news is the way we're seeing the business respond
to being staffed deployed correctly in the morning it's giving us
confidence that that three hour peak can actually become a four hour peak in the morning
the reason why that's important is obviously we're earning our way into having additional labor
to support more transactions at a peak type performance
i think you're gonna see the same thing happen in the afternoon you know it'll start out as an hour
then we'll stretch it into two hours and then ideally it'll get to three hours
and if you look at starbucks historically you know way back
when we actually had a four hour morning peak so we are getting back
what we know we can do and you know that is what i get excited about and that's
when you mentioned like in the morning and the reason why that's important is
obviously we're earning our way into having additional labor
to support more transactions at a peak type performance
i think you're gonna see the same thing happen in the afternoon you know it'll start out as an hour
then we'll stretch it into two hours and then ideally it'll get to three hours
and if you look at starbucks historically you know way back
when we actually had a four hour morning peak so we are getting back
what we know we can do and you know that is what i get excited about and that's
when you mentioned like getting surgical that's what i think about getting surgical
which is driving and extending the peaks
so that we give customers better service and our partners are staffed and deployed
to meet the demand that we know and see at those times of day so
we're gonna continue to fine tune it but i really think we're fine tuning it from a standpoint of
driving more growth more throughput
and bigger peaks
so i think that was the last question
yes that was the last question i'll turn it over to brian nickel for closing
getting surgical that's what i think about getting surgical which is
driving and extending the peaks so that we give customers
better service and our partners are staffed and deployed
to meet the demand that we know and see at those times of day so
we're gonna continue to fine tune it but i really think we're fine tuning it from a standpoint of
driving more growth more throughput
and bigger peaks
so i think that was the last question
yes that was the last question i'll turn it over to brian nickel for closing remarks
okay so look thanks everybody for your time you know i i'd like to wrap up
and there's a couple things i just wanna leave you with first
we had a terrific quarter and a great year okay because we got back
to i think winning on the fundamentals and as a result our core business is stronger
we are ahead of schedule and the improvements we've made
gonna be lasting improvements because they're built on the fundamentals of the business
the second thing is back to starbucks i mentioned this earlier
you know it started as a turnaround plan it really is now our growth plan
we delivered five consecutive quarters of positive comps three consecutive
quarters of margin expansion you know we're seeing the tsds perform in the peak
both in the morning the afternoon and all day so we're continuing to feel
really confident in what our growth plan is all about and then the third thing is
i think it's really important as we look at fiscal year twenty seven
we're focused on delivering consistent comp performance that's gonna be
driven by i think the fundamentals of the business
with great innovation both in menu digital
and then obviously across our assets so
we know when we get then the third thing is you know i think it's really important as we look at fiscal year
twenty seven we're focused on delivering consistent comp performance that's going to be
driven by i think the fundamentals of the business
with great innovation both in menu digital
and then obviously across our assets so
we know when we get really good top line we have the ability to
expand the bottom line and i think we demonstrated that as we closed out fiscal year twenty six
and i think that's where you continue to see us do going forward so and then the third thing is
you know i think it's really important as we look at fiscal year twenty seven
we're focused on delivering consistent comp performance that's going to be driven by
think the fundamentals of the business
with great innovation both in menu digital
and then obviously across our assets so
we know when we get really good top line we have the ability to
expand the bottom line and i think we demonstrated that as we closed out fiscal year twenty six
and i think that's where you continue to see us do going forward so really good top line
we have the ability to expand the bottom line and i think we demonstrated that
as we closed out fiscal year twenty six and i think that's where you continue to see
us do going forward so we've got a clear strategy
really proud of our teams in
every single coffee house you know i think the seattle support center is
dialed in and focused on absolutely the right work and we've got a growth plan that we're gonna continue
execute and deliver durable results so i'm super excited about what's ahead
you know we've got a clear strategy really proud of our teams
in
every single coffee house you know i think the seattle support center is
dialed in and focused on absolutely the right work and we've got
a growth plan that we're gonna continue to execute and deliver durable results
so i'm super excited about what's ahead
you know the other thing i'll let you know too is
holiday kicks off next week and you know i've got a
insider's look at what our merchandising looks like
thing i'll let you know too is holiday kicks off next week
and you know i've got a
insider's look at what our merchandising looks like for that all the merchandise looks
fabulous i haven't been here that long but i think it's the best i've ever seen
so i can't wait to get out in the stores next week see the stores turn red
with the great holiday merchandise and if you've never had a tiramisu latte
get ready to have a tiramisu tiramisu latte from starbucks because
i think that's also fabulous so hopefully you can get out there celebrate with your family and friends
know i'll be out there celebrating with our partners as we launch holiday
so look forward to seeing everybody in a few months and i'm sure we'll be talking soon
thank you and
take care
this concludes starbucks fourth quarter
and full fiscal year twenty twenty six conference with the great holiday merchandise and
if you've never had a tiramisu latte get ready
have a tiramisu tiramisu latte from starbucks because
i think that's also fabulous so hopefully you can get out there celebrate with your family and friends
i know i'll be out there celebrating with our partners as we launch holiday
so look forward to seeing everybody in a few months and i'm sure we'll be talking soon
thank you and
take care
this concludes starbucks fourth quarter
and full fiscal year twenty twenty six conference call
may now disconnect
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