Earnings call · Starbucks
Thu Oct 29, Saidwire live coverage archive
https://saidwire.com/archive/earnings-sbux-oct29

STORY (final version)

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
4:18:02 PM ET  STARBUCKS: Q4 NET REVENUES $9.1B, DOWN 3.9% Y/Y; GLOBAL COMPS UP 7.2%, U.S. COMPS UP 7.7%
4:18:47 PM ET  STARBUCKS: Q4 CONSOLIDATED OPERATING MARGIN 14%, UP 450 BASIS POINTS; EPS UP ~54% TO $0.80
4:19:31 PM ET  STARBUCKS: FY NET REVENUES $37.9B, UP 2.1%; FY GLOBAL COMPS UP 6.2%, U.S. COMPS UP 6.5%
4:20:15 PM ET  STARBUCKS: FY OPERATING MARGIN 11.9%, UP 200 BASIS POINTS; FY EPS UP ~27% TO $2.72
4:20:56 PM ET  STARBUCKS: FY INTERNATIONAL COMPS UP 3.7%; FY EPS OF $2.72 EXCEEDED HIGH END OF GUIDANCE
4:21:36 PM ET  STARBUCKS: Q4 N. AMERICA COMPANY-OPERATED COMPS UP 7.9%, DOUBLE-DIGIT COMPS IN CANADA
4:25:03 PM ET  STARBUCKS: 90-DAY ACTIVE REWARDS MEMBERS HIT RECORD 36 MILLION, UP Y/Y AND FROM Q3
4:26:18 PM ET  STARBUCKS: COMPLETED MORE THAN 1,700 TOTAL COFFEE HOUSE UPLIFTS IN N. AMERICA, SURPASSING GOAL
4:27:12 PM ET  STARBUCKS: TO INTEGRATE DELIVERY INTO STARBUCKS APP IN Q2, CUSTOMERS TO EARN AND REDEEM STARS
4:29:16 PM ET  STARBUCKS: SEES FEWER COMPANY-OPERATED OPENINGS IN FY27; EXPECTS 2,000+ UPLIFTS IN FY27
4:30:41 PM ET  STARBUCKS: INTL NET NEW COFFEEHOUSE OPENINGS TO ACCELERATE NEARLY 50% VS FY26, ~3 PER DAY
4:31:24 PM ET  STARBUCKS: SEES POTENTIAL FOR NEARLY 40,000 INTL COFFEEHOUSES LONG TERM VS 23,000+ TODAY
4:32:09 PM ET  STARBUCKS: Q4 NET REVENUES $9.1B, DOWN 3.9% Y/Y; Q4 GLOBAL COMPS UP 7.2%
4:33:33 PM ET  STARBUCKS: Q4 U.S. COMPS UP 7.7%, TRANSACTIONS UP 2.4%, TICKET UP 5.2%
4:35:04 PM ET  STARBUCKS: Q4 N. AMERICA LICENSE REVENUES UP 2.6%; 18,176 COFFEEHOUSES, 247 CO-OP NET CLOSURES
4:35:48 PM ET  STARBUCKS: Q4 INTL NET REVENUES $1.3B, OPERATING INCOME $261.3M; INTL CO-OP COMPS UP 0.9%
4:36:28 PM ET  STARBUCKS: ENDS FY26 WITH 41,607 COFFEEHOUSES GLOBALLY; INTL 23,431 WITH 498 NET NEW IN Q4
4:37:08 PM ET  STARBUCKS: Q4 CHANNEL DEV NET REVENUES DOWN 8.9% TO $494.4M; OPERATING INCOME ABOUT FLAT Y/Y
4:37:52 PM ET  STARBUCKS: 617 NET NEW COFFEEHOUSES IN FY26, WELL AHEAD OF MOST RECENT EXPECTATIONS
4:38:32 PM ET  STARBUCKS: Q4 CONSOLIDATED OPERATING MARGIN EXPANDED 450 BPS TO APPROX 14%
4:38:59 PM ET  STARBUCKS: Q4 N. AMERICA OPERATING MARGIN EXPANDED 440 BPS TO APPROX 16%; G&A DOWN ~20%
4:40:02 PM ET  STARBUCKS: Q4 MARKED THIRD STRAIGHT QUARTER OF MARGIN EXPANSION, IMPROVEMENT IN EVERY SEGMENT
4:40:42 PM ET  STARBUCKS: SEES FY27 CONSOLIDATED OPERATING MARGIN 13.5% TO 14%, UP ~190 BPS AT MIDPOINT
4:41:25 PM ET  STARBUCKS: FY27 INTL OPERATING MARGIN SEEN STARTING AROUND 20%; CHANNEL DEV MID TO HIGH 40S PCT
4:42:07 PM ET  STARBUCKS: SEES FY27 EPS $3.15 TO $3.25, GROWING CLOSE TO 18% Y/Y AT THE MIDPOINT
4:43:34 PM ET  STARBUCKS: SEES FY27 ~1,200 NET NEW COFFEEHOUSES GLOBALLY; INTL ~1,100, N. AMERICA 90-100
4:44:14 PM ET  STARBUCKS: FY27 EPS GUIDANCE INCLUDES BENEFIT OF SLIGHTLY MORE THAN $0.10 FROM 53RD WEEK
4:45:45 PM ET  STARBUCKS: PLANS ABOUT $1B IN FY27 SHARE REPURCHASES; QUARTERLY DIVIDEND RAISED TO $0.63/SHARE
4:46:25 PM ET  STARBUCKS: SEES FY27 CAPEX APPROXIMATELY 5% OF NET REVENUES
4:48:33 PM ET  STARBUCKS CFO: EXPECTS TO HIT LOW END OF 13.5%-15% FY28 MARGIN TARGET IN FY27, A YEAR EARLY
4:52:44 PM ET  STARBUCKS: SEES FY28 US NEW UNITS NORTH OF 300; US FY27 NET NEW ~100 OR A LITTLE BELOW
4:57:04 PM ET  STARBUCKS CEO: HAS CLEAR LINE OF SIGHT ON 5,000 NEW US UNITS, SEES MORE UPSIDE TO THAT NUMBER
5:04:23 PM ET  STARBUCKS: SALES, MARGINS AND EARNINGS ALL AHEAD OF SCHEDULE; FY28 GUIDANCE 'A POINT IN TIME'
5:08:41 PM ET  STARBUCKS: INTL COMP GROWTH FOR SEVENTH STRAIGHT QUARTER; EX-CHINA REVENUE UP 5%
5:09:29 PM ET  STARBUCKS: SEES MORE THAN 2,000 COFFEEHOUSE UPLIFTS IN COMING FISCAL YEAR
5:17:01 PM ET  STARBUCKS CEO: TRANSACTIONS UP VS YEAR AGO IN EVERY DAYPART, MORNING AND AFTERNOON
5:17:41 PM ET  STARBUCKS: MATCHA BUSINESS NOW OVER A BILLION DOLLAR PLATFORM AND GROWING YEAR OVER YEAR
5:19:46 PM ET  STARBUCKS: SEES MORNING PEAK STRETCHING FROM 3 HOURS TO 4 HOURS; AFTERNOON PEAK AT 1 HOUR NOW
5:22:00 PM ET  STARBUCKS CEO: FIVE CONSECUTIVE QUARTERS OF POSITIVE COMPS, THREE OF MARGIN EXPANSION

POSTS (quotes verbatim; each shows when the words were said and when we drafted it)

Starbucks said fourth-quarter global comparable sales rose 7.2%, its fifth straight quarter of growth, and U.S. comps rose 7.7%. "Global comps were up 7.2%," an executive said on the earnings call.
  said 4:17:53 PM ET · drafted 4:19:03 PM ET

Starbucks said fourth-quarter consolidated operating margin "expanded 54 basis points year over year to 14%," calling it its third consecutive quarter of margin growth, on an earnings call Thursday.
  said 4:18:24 PM ET · drafted 4:20:06 PM ET

Starbucks said full-year fiscal 2026 earnings per share grew approximately 27% to $2.72, "exceeding the high end of our guidance," on its Oct. 29 earnings call. Operating margin expanded 200 basis points to 11.9%.
  said 4:19:17 PM ET · drafted 4:21:11 PM ET

Starbucks said that in the quarter, "more than 80% of our north American company operated coffee houses delivered positive comps up from less than 50% a year ago."
  said 4:21:48 PM ET · drafted 4:22:08 PM ET

Starbucks said 90-day active Starbucks Rewards members "reached a record 36 million," growing both year over year and sequentially from the third quarter, on its Oct. 29 earnings call.
  said 4:24:57 PM ET · drafted 4:26:21 PM ET

Starbucks said on its earnings call that "in q2 we'll begin to integrate delivery directly into the starbucks app" and that it is working on AI to make app search and discovery "more seamless."
  said 4:27:09 PM ET · drafted 4:27:24 PM ET

Starbucks said "in fiscal 27 we'll begin testing background ai models in the drive thru." An executive said roughly half of its customers use the drive-thru. (Earnings call, Oct. 29)
  said 4:28:16 PM ET · drafted 4:28:25 PM ET

Starbucks said Thursday it expects "fewer company operated openings in fiscal" 2027 as it rebuilds its development pipeline. It also expects to complete more than 2,000 coffeehouse uplifts in fiscal 2027.
  said 4:29:26 PM ET · drafted 4:29:28 PM ET

Starbucks said it sees room to grow "from more than 23,000 international coffee houses today to nearly 40,000 over the long term," including potentially doubling its presence in China and India.
  said 4:30:22 PM ET · drafted 4:30:32 PM ET

Starbucks CFO Cathy Smith said U.S. fourth-quarter comparable sales grew 7.7%, "with a healthy balance of transactions up 2.4% and ticket up 5.2%."
  said 4:32:20 PM ET · drafted 4:34:04 PM ET

Starbucks CFO Cathy Smith said international company-operated comparable sales, "which are now largely comprised of Japan and the uk grew 0.9%" in the fourth quarter.
  said 4:34:32 PM ET · drafted 4:35:05 PM ET

Starbucks CFO: "Q4 consolidated operating margin expanded 54 basis points to approximately 14%." He said it was the third consecutive quarter of margin expansion.
  said 4:38:06 PM ET · drafted 4:38:19 PM ET

Starbucks said consolidated general and administrative expense fell about 20% in the fourth quarter, "reflecting our cost savings efforts and China deconsolidation together."
  said 4:38:54 PM ET · drafted 4:39:19 PM ET

Starbucks on fiscal 2027 guidance: "We expect fiscal 2027 consolidated operating margin of 13.5% to 14%." It said that was up about 190 basis points at the midpoint.
  said 4:40:12 PM ET · drafted 4:40:23 PM ET

Starbucks said it has "realized roughly half of those gross savings" from its cost savings work, which it expects to continue through fiscal 2028. It expects consolidated G&A dollars to be flat to slightly down in fiscal 2027.
  said 4:40:34 PM ET · drafted 4:41:27 PM ET

Starbucks expects fiscal 2027 earnings per share of "$3.15 to $3.25," the company's finance chief said. The range includes a benefit of slightly more than 10 cents from a 53rd week.
  said 4:42:00 PM ET · drafted 4:44:47 PM ET

"We also expect to deploy approximately $1 billion towards share repurchases," a Starbucks executive said on the earnings call. Capital expenditures are expected at about 5% of net revenues in fiscal 2027.
  said 4:45:03 PM ET · drafted 4:45:45 PM ET

"We are already believing we will achieve that low end of that guidance in fiscal year 27."

Starbucks executive, on reaching the low end of its fiscal 2028 margin target of 13.5% to 15% a year early.
  said 4:48:32 PM ET · drafted 4:48:59 PM ET

Starbucks executive on fiscal 2027 net new U.S. company-operated stores: "Call it 100 net new range or a little below there." The reset pipeline and some closures drive the figure, the executive said.
  said 4:50:34 PM ET · drafted 4:51:15 PM ET

"We wanna get back into building new units, you know, north of 300 or so in the US," a Starbucks executive said of fiscal 2028. The company expects about 100 net new U.S. units in fiscal 2027.
  said 4:51:09 PM ET · drafted 4:52:35 PM ET

"We're just getting started in some of these ideas," a Starbucks executive said of drive-through tests on the earnings call. Details would be "premature," the executive said, adding the goal is to improve throughput.
  said 4:51:56 PM ET · drafted 4:54:55 PM ET

Starbucks executive on fiscal 2027 U.S. comparable sales: "We move into f y 27 we're gonna wait a little bit more towards ticket than transaction." Price will be "below CPI," the executive said.
  said 4:55:48 PM ET · drafted 4:56:59 PM ET

A Starbucks executive said the company has "clear line of sight on the 5000" additional units, adding, "I'm guessing there's gonna be more upside to that number."
  said 4:57:02 PM ET · drafted 4:58:03 PM ET

Starbucks executive, on first-quarter comparable sales: "Q one is the easiest lap if you just look at last year but if you look at absolute transactions we were actually fairly consistent through the year."
  said 4:58:38 PM ET · drafted 4:59:01 PM ET

Starbucks executive: "Protein would be an example of a platform obviously the energy refreshers is an example of a platform." The executive also cited afternoon "bites" and health and wellness.
  said 4:59:43 PM ET · drafted 5:00:05 PM ET

"We're gonna be getting to the replenishment here in the next you know call it six to 12 months," a Starbucks executive said on an earnings call, adding daily deliveries have made early progress.
  said 5:02:44 PM ET · drafted 5:03:13 PM ET

A Starbucks executive said sales, margins and earnings are ahead of schedule, adding "you see us guiding already to the low side of fiscal year 28." He responded to a Deutsche Bank analyst.
  said 5:03:57 PM ET · drafted 5:04:13 PM ET

A Starbucks executive said on the earnings call that the company has "no expectations that that's an endpoint" for its fiscal 2028 guidance, which the executive called "just a point in time on our journey."
  said 5:04:41 PM ET · drafted 5:05:21 PM ET

Starbucks executive on strategy: "Back to Starbucks as a strategy to switch gears from a turnaround plan to a growth plan." He said the company is ahead of schedule on sales, margins and earnings.
  said 5:05:28 PM ET · drafted 5:06:19 PM ET

Starbucks executive on coffeehouse uplifts: "Get going and be able to do more than 2000 in this coming fiscal year." He said customers and partners say the remodeled stores feel "like starbucks again."
  said 5:07:57 PM ET · drafted 5:08:26 PM ET

"This is now seven consecutive quarters of comp growth," a Starbucks executive said of its international business. The executive added that revenue was up 5% excluding China.
  said 5:09:25 PM ET · drafted 5:09:30 PM ET

Starbucks executive on whether its Japan ownership strategy could change: "If and when the time comes where that should change, you know, we'll share that with you."
  said 5:10:03 PM ET · drafted 5:10:33 PM ET

A Starbucks executive said the revamped rewards program "continues to, I think, meet and exceed our expectations." The comment came in response to a question from BTIG analyst Peter Saleh on the earnings call.
  said 5:11:19 PM ET · drafted 5:11:39 PM ET

A Starbucks executive said "the program is working exactly the way" the company would hope, citing rising customer frequency, and that the next step is more personalization, responding to BTIG's Peter Saleh.
  said 5:12:22 PM ET · drafted 5:12:40 PM ET

Starbucks says upgrades to its food and pastry case have driven its biggest increase in attach in the afternoon: "The biggest place where we've seen an increase of attach has been in the afternoon in the pm."
  said 5:14:31 PM ET · drafted 5:14:49 PM ET

Starbucks executive on afternoon sales: "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."
  said 5:14:19 PM ET · drafted 5:15:50 PM ET

Starbucks said transactions are up versus a year ago "in every daypart," adding, "morning is increasing, the afternoon is increasing." It responded to Wolfe Research's Margaret Binstock on afternoon sales.
  said 5:16:30 PM ET · drafted 5:16:54 PM ET

A Starbucks executive said on the earnings call: "Our matcha business is now over $1 billion platform and it's growing tremendously year over year." The remark came in answer to a question on afternoon sales.
  said 5:17:23 PM ET · drafted 5:17:56 PM ET

Starbucks executive says the company's three-hour morning peak "can actually become a four hour peak in the morning," citing the response to staffing deployed correctly. He spoke on the earnings call.
  said 5:19:14 PM ET · drafted 5:20:04 PM ET

"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," Starbucks CEO Brian Niccol said in closing remarks on the call.
  said 5:21:00 PM ET · drafted 5:21:07 PM ET

"We're focused on delivering consistent comp performance" in fiscal 2027, Starbucks CEO Brian Niccol said in closing remarks on the earnings call, adding that it would be driven by "the fundamentals of the business."
  said 5:21:52 PM ET · drafted 5:22:12 PM ET

"We delivered five consecutive quarters of positive comps three consecutive quarters of margin expansion," Starbucks CEO Brian Niccol said in closing remarks on the company's earnings call Thursday.
  said 5:21:19 PM ET · drafted 5:23:18 PM ET

TRANSCRIPT (copy-edited; times Eastern)

[4:15:20 PM ET] Good afternoon, and welcome to Starbucks' fourth.
[4:15:30 PM ET] 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.
[4:15:35 PM ET] to the next one.
[4:15:35 PM ET] Good afternoon, and welcome to Starbucks' fourth.
[4:15:35 PM ET] 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.
[4:15:40 PM ET] 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.
[4:15:50 PM ET] 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.
[4:16:00 PM ET] 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.
[4:16:05 PM ET] 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.
[4:16:05 PM ET] 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.
[4:16:05 PM ET] 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.
[4:16:10 PM ET] 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.
[4:16:10 PM ET] 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.
[4:16:10 PM ET] 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.
[4:16:15 PM ET] 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.
[4:16:20 PM ET] 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.
[4:16:25 PM ET] 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.
[4:16:25 PM ET] 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.
[4:16:25 PM ET] 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.
[4:16:30 PM ET] 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.
[4:16:30 PM ET] 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.
[4:16:35 PM ET] 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.
[4:16:40 PM ET] 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.
[4:16:50 PM ET] 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.
[4:16:55 PM ET] 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.
[4:16:55 PM ET] 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.
[4:16:55 PM ET] 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.
[4:17:00 PM ET] 2027. I'll now turn the call over to Brian. Good afternoon, and thanks for joining. We close fiscal 2026 with another
[4:17:10 PM ET] 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.
[4:17:15 PM ET] And for calendar planning purposes, please note that our first quarter fiscal 27 earnings conference call is tentatively scheduled for Wednesday, January 27, 2020.
[4:17:15 PM ET] 2027. I'll now turn the call over to Brian. Good afternoon, and thanks for joining. We close fiscal 2026 with another
[4:17:15 PM ET] 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.
[4:17:20 PM ET] 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.
[4:17:22 PM ET] four our net revenues were nine point one billion dollars
[4:17:25 PM ET] down three point nine percent year over year reflecting the mid year transition of our china
[4:17:25 PM ET] Seven. I'll now turn the call over to Brian. Good afternoon, and thanks for joining. We closed fiscal 2026 with another
[4:17:25 PM ET] 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.
[4:17:25 PM ET] 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.
[4:17:26 PM ET] business to a licensed model
[4:17:29 PM ET] i'll now turn the call over to brian
[4:17:30 PM ET] 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.
[4:17:32 PM ET] good afternoon and thanks for joining
[4:17:36 PM ET] we closed fiscal two thousand twenty six with another terrific quarter
[4:17:37 PM ET] and a much stronger starbucks than we had a year ago
[4:17:40 PM ET] back to starbucks started as a turnaround plan
[4:17:40 PM ET] 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
[4:17:42 PM ET] and now back to starbucks is our growth plan
[4:17:46 PM ET] in q four our net revenues were nine point one billion dollars
[4:17:49 PM ET] down three point nine percent year over year reflecting the mid year
[4:17:50 PM ET] to 80 cents. For the full year, consolidated net revenues grew to $37.9 billion, up 2.1%. Global company operations.
[4:17:50 PM ET] transition of our china business to a licensed model
[4:17:54 PM ET] global comps were up seven point two percent marking our fifth consecutive
[4:17:57 PM ET] quarter of comp growth and u s comps were up seven point seven percent
[4:18:00 PM ET] operated comps were up 6.2 percent, with U.S. comps up 6.5 percent and international comps of 3.7 percent. Consolidated operating
[4:18:01 PM ET] consolidated operating margin expanded four fifty basis points year over year
[4:18:02 PM ET] to fourteen percent
[4:18:04 PM ET] third consecutive quarter of margin growth
[4:18:05 PM ET] 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.
[4:18:05 PM ET] to 80 cents. For the full year, consolidated net revenues grew to $37.9 billion, up 2.1%. Global company operations.
[4:18:05 PM ET] operated comps were up 6.2 percent, with U.S. comps up 6.5 percent and international comps of 3.7 percent. Consolidated operating
[4:18:07 PM ET] and earnings per share grew approximately fifty four percent to zero eight zero dollars
[4:18:10 PM ET] operating to 80 cents. For the full year, consolidated net revenues grew to $37.9 billion, up 2.1 percent. Global company operating.
[4:18:10 PM ET] operated comps were up 6.2 percent, with U.S. comps up 6.5 percent and international comps of 3.7 percent. Consolidated operating
[4:18:10 PM ET] operating margin expanded 200 basis points to 11.9 percent, and earnings per share grew approximately 27 percent to $2.72, exceeding the high.
[4:18:11 PM ET] for the full year consolidated net revenues grew thirty seven
[4:18:13 PM ET] point nine billion dollars up two point one percent
[4:18:15 PM ET] 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.
[4:18:17 PM ET] global company operated comps were up six point two percent
[4:18:20 PM ET] 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.
[4:18:20 PM ET] with u s comps up six point five percent
[4:18:21 PM ET] and international comps up three point seven percent
[4:18:25 PM ET] consolidated operating margin expanded four fifty basis points year over year
[4:18:29 PM ET] to fourteen percent our third consecutive quarter of margin growth
[4:18:30 PM ET] 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
[4:18:31 PM ET] and earnings per share grew approximately fifty four percent to zero eight zero dollars
[4:18:35 PM ET] for the full year consolidated net revenues grew thirty
[4:18:39 PM ET] seven point nine billion dollars up two point one percent
[4:18:40 PM ET] 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.
[4:18:40 PM ET] 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.
[4:18:41 PM ET] global company operated comps were up six point two percent
[4:18:44 PM ET] with u s comps up six point five percent
[4:18:45 PM ET] 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.
[4:18:45 PM ET] and international comps up three point seven percent
[4:18:47 PM ET] consolidated operating expenses were zero eight zero dollars
[4:18:50 PM ET] 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.
[4:18:51 PM ET] for the full year consolidated net revenues grew thirty
[4:18:54 PM ET] seven point nine billion dollars up two point one percent
[4:18:57 PM ET] global company operated comps were up six point two percent
[4:19:00 PM ET] 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.
[4:19:00 PM ET] with u s comps up six point five percent
[4:19:01 PM ET] and international comps up three point seven percent
[4:19:05 PM ET] consolidated operating margin expanded two hundred basis
[4:19:08 PM ET] points to eleven point nine percent and earnings per share grew approximately
[4:19:10 PM ET] 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.
[4:19:11 PM ET] twenty seven percent to two point seven two dollars
[4:19:13 PM ET] exceeding the high end margin expanded two hundred basis points to eleven point nine percent
[4:19:17 PM ET] and earnings per share grew approximately twenty seven percent to two point
[4:19:19 PM ET] seven two dollars exceeding the high end of our guidance
[4:19:20 PM ET] 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.
[4:19:20 PM ET] 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.
[4:19:20 PM ET] 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.
[4:19:23 PM ET] these results reflect a relentless focus on executing our back to starbucks strategy
[4:19:25 PM ET] 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.
[4:19:27 PM ET] two years ago we committed to getting back to starbucks and delivering our brand promise more consistently
[4:19:30 PM ET] 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.
[4:19:31 PM ET] we put the customer at the center of every decision we gave our partners more support
[4:19:35 PM ET] got clear on what matters we restored the third place and we put the end of our guidance
[4:19:39 PM ET] these results reflect our relentless focus on executing our back to starbucks strategy
[4:19:40 PM ET] 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.
[4:19:43 PM ET] two years ago we committed to getting back to starbucks and delivering our brand promise more consistent
[4:19:43 PM ET] consistently
[4:19:47 PM ET] we put the customer at the center of every decision we gave our partners more support
[4:19:50 PM ET] 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.
[4:19:51 PM ET] got clear on what matters we restored the third place and we put starbucks back
[4:19:52 PM ET] on its front foot
[4:19:56 PM ET] our plan is working more customers are visiting us because the starbucks
[4:19:56 PM ET] experience is better
[4:20:00 PM ET] 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
[4:20:00 PM ET] our coffee houses are coffee houses again starbucks back on its front foot
[4:20:04 PM ET] our plan is working more customers are visiting us
[4:20:04 PM ET] because the starbucks experience is better
[4:20:09 PM ET] our coffee houses are coffee houses again our partners are creating more moments
[4:20:10 PM ET] 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.
[4:20:11 PM ET] of connection our brand is more visible relevant and loved
[4:20:15 PM ET] our licensed and channel development businesses are extending our reach
[4:20:17 PM ET] to more places and occasions and more of our sales growth is translating into earnings
[4:20:20 PM ET] 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
[4:20:20 PM ET] 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.
[4:20:20 PM ET] 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.
[4:20:22 PM ET] for more than fifty years we've grown by delivering on the starbucks brand promise
[4:20:23 PM ET] exceptional coffee
[4:20:25 PM ET] 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.
[4:20:25 PM ET] 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.
[4:20:25 PM ET] 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.
[4:20:27 PM ET] human connection and a great customer experience in a true third place
[4:20:30 PM ET] 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.
[4:20:30 PM ET] 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.
[4:20:30 PM ET] it comes down to the fundamentals when we execute them with excellence we grow
[4:20:34 PM ET] that's in occasions and more of our sales growth is translating into earnings
[4:20:38 PM ET] for more than fifty years we've grown by delivering on the starbucks brand promise
[4:20:39 PM ET] exceptional coffee
[4:20:40 PM ET] 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
[4:20:43 PM ET] human connection and a great customer experience in a true third place
[4:20:45 PM ET] 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.
[4:20:45 PM ET] 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
[4:20:46 PM ET] it comes down to the fundamentals when we execute them with excellence we grow
[4:20:48 PM ET] that's what we saw in fiscal twenty twenty six
[4:20:50 PM ET] early coffeehouse incentive program is driving greater discipline around staffing and product waste while keeping teams focused on great customer service. Our leadership pipeline.
[4:20:50 PM ET] 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
[4:20:50 PM ET] 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.
[4:20:51 PM ET] it's what gives me confidence in the durability of our performance for the future
[4:20:55 PM ET] 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.
[4:20:55 PM ET] we had a great quarter and a great year and it put us ahead of schedule on our
[4:20:56 PM ET] so we saw in fiscal twenty six
[4:20:59 PM ET] and it's what gives me confidence in the durability of our performance for the future
[4:21:00 PM ET] 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,
[4:21:03 PM ET] we had a great quarter and a great year and it
[4:21:05 PM ET] us ahead of schedule on our fiscal twenty twenty eight framework and as we focus
[4:21:07 PM ET] on growth in fiscal twenty twenty seven we have even more opportunity ahead
[4:21:09 PM ET] me walk you through some of the highlights for the quarter
[4:21:10 PM ET] and merchandise continue to create moments that drive culture and bring people into our coffee houses. Espresso, refreshers, matcha, and our artisanal bait case.
[4:21:14 PM ET] starting in north america company operated comps
[4:21:15 PM ET] grew seven point nine percent driven by double digit comps in canada
[4:21:17 PM ET] and strong comps in the u s
[4:21:20 PM ET] 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.
[4:21:20 PM ET] that momentum is being driven by great execution in our coffee houses
[4:21:22 PM ET] a strong brand and a healthier portfolio
[4:21:23 PM ET] first
[4:21:27 PM ET] our coffeehouses are coffeehouses again we're operating with greater discipline and consistency
[4:21:28 PM ET] anchored by green apron service
[4:21:30 PM ET] 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.
[4:21:30 PM ET] 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.
[4:21:30 PM ET] 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.
[4:21:32 PM ET] in the quarter more than eighty percent of our north american
[4:21:35 PM ET] 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.
[4:21:35 PM ET] company operated coffee houses delivered positive comps up from less than fifty percent a year
[4:21:36 PM ET] ago
[4:21:40 PM ET] average service times remained on target and we continue to refine smartq
[4:21:40 PM ET] 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.
[4:21:43 PM ET] and our operating routines to improve throughput and consistency across
[4:21:44 PM ET] anchored by green apron service
[4:21:48 PM ET] in the quarter more than eighty percent of our north america company operated coffee
[4:21:50 PM ET] 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,
[4:21:52 PM ET] houses delivered positive comps up from less than fifty percent a year ago
[4:21:56 PM ET] average service times remained on target and we continue to refine smart
[4:21:59 PM ET] queue and our operating routines to improve throughput
[4:22:00 PM ET] and consistency across all access points
[4:22:00 PM ET] 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,
[4:22:04 PM ET] inventory availability is at an all time high with daily delivery now reaching close to ninety percent
[4:22:07 PM ET] our north america company operated coffee houses and our new core competency
[4:22:08 PM ET] anchored by green apron service
[4:22:10 PM ET] 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.
[4:22:12 PM ET] in the quarter more than eighty percent of our north america company operated
[4:22:16 PM ET] coffeehouses delivered positive comps up from less than fifty percent a year ago
[4:22:20 PM ET] average service times remained on target and we continue to refine smart
[4:22:20 PM ET] 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.
[4:22:23 PM ET] queue and our operating routines to improve throughput
[4:22:24 PM ET] and consistency across all access points
[4:22:28 PM ET] inventory availability is at an all time high with daily delivery now reaching
[4:22:30 PM ET] 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.
[4:22:31 PM ET] to ninety percent of our north america company operated coffee houses
[4:22:31 PM ET] and our new core products across all access points
[4:22:36 PM ET] inventory availability is in an all time high with daily
[4:22:38 PM ET] delivery now reaching close to ninety percent of our north america company operated coffee houses
[4:22:40 PM ET] 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.
[4:22:40 PM ET] 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.
[4:22:40 PM ET] 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.
[4:22:41 PM ET] and our new quarterly coffee house incentive program is driving greater discipline
[4:22:45 PM ET] around staffing and product waste while keeping teams focused on great customer service
[4:22:45 PM ET] 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.
[4:22:47 PM ET] our leadership pipeline is also getting stronger
[4:22:50 PM ET] 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.
[4:22:51 PM ET] we now have more than three thousand coffeehouse coaches enrolled across our u s company operated business
[4:22:53 PM ET] and they've all been hired from within the company
[4:22:56 PM ET] these positions across all access points
[4:23:00 PM ET] inventory availability is at an all time high with daily delivery now reaching
[4:23:00 PM ET] 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.
[4:23:03 PM ET] close to ninety percent of our north america company operated coffee houses
[4:23:05 PM ET] and our new quarterly coffee house incentive program is driving greater discipline
[4:23:09 PM ET] around staffing and product waste while keeping teams focused on great customer service
[4:23:10 PM ET] Mexico. Our increasingly licensed international model, which combines the power of Starbucks with the deep market expertise of local operators, underpinned our Unicorn.
[4:23:12 PM ET] our leadership pipeline is also getting stronger
[4:23:15 PM ET] we now have more than three thousand coffeehouse coaches enrolled across our u company operated business
[4:23:18 PM ET] and they've all been hired from within the company
[4:23:20 PM ET] 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.
[4:23:21 PM ET] these positions are really coffeehouse incentive program is driving greater discipline
[4:23:25 PM ET] around staffing and product waste while keeping teams focused on great
[4:23:25 PM ET] 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.
[4:23:25 PM ET] customer service
[4:23:25 PM ET] 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
[4:23:27 PM ET] our leadership pipeline is also getting stronger
[4:23:30 PM ET] Latin America and the Caribbean, bringing Starbucks' premium coffee experience to nearly 500 new communities. Our progress through fiscal 26 reinforces what we know.
[4:23:31 PM ET] we now have more than three thousand coffee house coaches enroll across
[4:23:34 PM ET] our u s company operated business and they've all been hired from within the company
[4:23:38 PM ET] these positions improve leadership stability and execution
[4:23:38 PM ET] give our partners new pathways to grow
[4:23:40 PM ET] 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.
[4:23:41 PM ET] help build the next generation of leaders to support our future growth
[4:23:45 PM ET] 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.
[4:23:45 PM ET] Latin America and the Caribbean, bringing Starbucks' premium coffee experience to nearly 500 new communities. Our progress through fiscal 26 reinforces what we know.
[4:23:45 PM ET] 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.
[4:23:45 PM ET] second improve leadership stability and execution
[4:23:47 PM ET] give our partners new pathways to grow
[4:23:49 PM ET] help build the next generation of leaders to support our future growth
[4:23:50 PM ET] 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.
[4:23:53 PM ET] second customers are responding to
[4:23:54 PM ET] a stronger more relevant brand and menu
[4:23:58 PM ET] starbucks brand affinity is at near record
[4:24:00 PM ET] 13.5% to 14%, and EPS of $3.15 to $3.25. To deliver these results, five priorities will drive our work.
[4:24:00 PM ET] levels as our menu innovation marketing and merchandise continue to create moments
[4:24:03 PM ET] drive culture and bring people into our coffee houses
[4:24:07 PM ET] espresso refreshers matcha and our artisanal bake case
[4:24:08 PM ET] showed continued strength in the quarter
[4:24:10 PM ET] 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
[4:24:12 PM ET] our unicorn launch in august united thirty four markets for our first
[4:24:15 PM ET] global coffeehouse activation and delivered a record sales weekend and merchandise
[4:24:19 PM ET] continue to create moments that drive culture and bring people into our coffee houses
[4:24:20 PM ET] 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.
[4:24:23 PM ET] espresso refreshers matcha and our artisanal bake case
[4:24:24 PM ET] showed continued strength in the quarter
[4:24:28 PM ET] our unicorn launch in august united thirty four markets
[4:24:30 PM ET] 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.
[4:24:31 PM ET] for our first global coffeehouse activation and delivered a record sales weekend for our north america
[4:24:32 PM ET] company operated business
[4:24:36 PM ET] we followed that with our strongest north america fall launch day
[4:24:39 PM ET] and our global peanuts collaboration demonstrated the power of great merch
[4:24:40 PM ET] 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.
[4:24:40 PM ET] delivering for our north america company operated business
[4:24:44 PM ET] we followed that with our strongest north america fall launch day
[4:24:45 PM ET] 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.
[4:24:45 PM ET] 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.
[4:24:45 PM ET] 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.
[4:24:47 PM ET] and our global peanuts collaboration demonstrated the power of great merch
[4:24:48 PM ET] delivering robust sales days around the world
[4:24:50 PM ET] 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.
[4:24:51 PM ET] our u s company operated comp growth remained balanced
[4:24:55 PM ET] with contribution from both ticket and transactions ninety day active
[4:24:58 PM ET] starbucks rewards members reached a record thirty six million
[4:24:59 PM ET] growing both year over year and sequentially from q3
[4:25:00 PM ET] 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.
[4:25:01 PM ET] and sales growth remained broad based
[4:25:03 PM ET] across income levels generations and dayparts
[4:25:07 PM ET] together these results tell us the starbucks experience is resonating
[4:25:10 PM ET] 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.
[4:25:10 PM ET] 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.
[4:25:11 PM ET] our coffee houses feel more like starbucks too as of
[4:25:14 PM ET] fiscal year end we surpassed our goal by completing more than one thousand seven hundred total uplifts
[4:25:15 PM ET] 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.
[4:25:18 PM ET] across north america bringing back warmth comfortable seating and the third place to our
[4:25:19 PM ET] cafes
[4:25:20 PM ET] 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.
[4:25:22 PM ET] up lifted coffee houses continue to show transaction lift across access points
[4:25:24 PM ET] day parts formats and loyalty groups
[4:25:26 PM ET] giving us confidence to continue our pace of work
[4:25:27 PM ET] third
[4:25:30 PM ET] we're building a healthier coffee house portfolio
[4:25:30 PM ET] 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.
[4:25:34 PM ET] in north america we closed coffee houses that didn't show a path to delivering the experience or financial
[4:25:35 PM ET] performance we expect
[4:25:38 PM ET] up lifted coffee houses continue to show transaction lift across access points
[4:25:40 PM ET] 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.
[4:25:40 PM ET] 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.
[4:25:40 PM ET] 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.
[4:25:40 PM ET] day parts formats and loyalty groups
[4:25:42 PM ET] giving us confidence to continue our pace of work
[4:25:44 PM ET] third
[4:25:45 PM ET] 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.
[4:25:46 PM ET] we're building a healthier coffee house portfolio
[4:25:50 PM ET] in north america we closed coffeehouses that didn't show a path
[4:25:50 PM ET] 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.
[4:25:51 PM ET] delivering the experience or financial performance we expect
[4:25:55 PM ET] we also unveiled our smaller format coffee houses in multiple markets
[4:25:57 PM ET] taking the concept we showcased at investor day from prototype to reality
[4:25:58 PM ET] in less than a year
[4:25:59 PM ET] thanks
[4:26:00 PM ET] great innovation strengthens the ritual and gives customers more reasons to choose Starbucks. In fiscal 27, we'll bring beverages, food, and merchandise together.
[4:26:03 PM ET] we also unveiled our smaller format coffee houses in multiple markets
[4:26:05 PM ET] taking the concept we showcased at investor day from prototype to reality
[4:26:06 PM ET] in less than a year
[4:26:10 PM ET] 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.
[4:26:10 PM ET] 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,
[4:26:10 PM ET] customer and partner feedback has been terrific and we'll learn from these early openings to help shape how we build
[4:26:11 PM ET] for the future
[4:26:15 PM ET] 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.
[4:26:15 PM ET] great innovation strengthens the ritual and gives customers more reasons to choose Starbucks. In fiscal 27, we'll bring beverages, food, and merchandise together.
[4:26:15 PM ET] 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,
[4:26:15 PM ET] international is an important growth engine for starbucks
[4:26:18 PM ET] our diversified portfolio remained a key strength in q4
[4:26:20 PM ET] 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.
[4:26:20 PM ET] 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
[4:26:30 PM ET] 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.
[4:26:40 PM ET] 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
[4:26:50 PM ET] 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.
[4:27:00 PM ET] 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.
[4:27:04 PM ET] build more personalized touch points through relevant content and recommendations tailored to
[4:27:04 PM ET] customer tastes and preferences
[4:27:10 PM ET] 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.
[4:27:10 PM ET] in q2 we'll begin to integrate delivery directly into the starbucks app
[4:27:12 PM ET] we'll extend the opportunity for customers to begin earning and redeeming stars on delivery orders
[4:27:16 PM ET] we are working on opportunities for ai to make search and discovery in the app more seamless
[4:27:20 PM ET] 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.
[4:27:20 PM ET] with the potential to support conversational and agentic ordering over time
[4:27:23 PM ET] and we're exploring ways to make it easier for customers to place mobile orders from their cars and through
[4:27:30 PM ET] 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.
[4:27:30 PM ET] 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.
[4:27:30 PM ET] 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
[4:27:30 PM ET] emerging ai app and will extend the opportunity for customers
[4:27:30 PM ET] to begin earning and redeeming stars on delivery orders
[4:27:32 PM ET] we are working on opportunities for ai to make search and discovery in the app more seamless
[4:27:35 PM ET] 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.
[4:27:35 PM ET] with the potential to support conversational and agentic ordering over time
[4:27:39 PM ET] and we're exploring ways to make it easier for customers to place mobile orders from their cars
[4:27:40 PM ET] 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.
[4:27:40 PM ET] 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.
[4:27:41 PM ET] and through emerging ai platforms
[4:27:45 PM ET] 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.
[4:27:45 PM ET] also working to reimagine the drive thru experience to make it faster more convenient and more personal
[4:27:49 PM ET] roughly half of our customers use the drive thru making it a significant high platforms
[4:27:50 PM ET] 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.
[4:27:52 PM ET] we're also working to reimagine the drive thru experience to
[4:27:53 PM ET] make it faster more convenient and more personal
[4:27:57 PM ET] roughly half of our customers use the drive thru making it a
[4:27:59 PM ET] difference with the potential to support conversational and agentic ordering over time
[4:28:00 PM ET] 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.
[4:28:03 PM ET] and we're exploring ways to make it easier for customers to place mobile orders from their cars and through
[4:28:05 PM ET] emerging ai platforms
[4:28:09 PM ET] also working to reimagine the drive thru experience to make it faster more convenient and more personal
[4:28:10 PM ET] 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.
[4:28:13 PM ET] roughly half of our customers use the drive thru making it a significant opportunity
[4:28:17 PM ET] in fiscal twenty seven we'll begin testing background ai models in the drive thru
[4:28:20 PM ET] 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.
[4:28:21 PM ET] that help our baristas input orders more accurately and efficiently with significant opportunity
[4:28:25 PM ET] in fiscal twenty seven we'll begin testing background ai models in the drive
[4:28:29 PM ET] that help our baristas input orders more accurately and efficiently
[4:28:30 PM ET] 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.
[4:28:32 PM ET] as they interact with customers the intent is to help our partners
[4:28:32 PM ET] focus on connecting with customers
[4:28:36 PM ET] while improving both throughput and speed of service we're also exploring experiences that recognize
[4:28:38 PM ET] participating customers as they arrive
[4:28:39 PM ET] present personalized digital menus
[4:28:40 PM ET] 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.
[4:28:41 PM ET] and make payment more effortless
[4:28:42 PM ET] we're early in this work
[4:28:44 PM ET] and we'll test learn and scale what works
[4:28:45 PM ET] fourth
[4:28:47 PM ET] grow with discipline in the us and around the world
[4:28:50 PM ET] 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.
[4:28:51 PM ET] we see significant long term white space in north america
[4:28:53 PM ET] with the opportunity to build around five thousand additional coffee houses over time
[4:28:55 PM ET] 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.
[4:28:55 PM ET] 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.
[4:28:55 PM ET] 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.
[4:28:57 PM ET] we're focused on making disciplined decisions today that set us up for stronger
[4:28:58 PM ET] more durable growth in the future
[4:29:00 PM ET] 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.
[4:29:02 PM ET] rebuilding our development pipeline will take time which means we expect fewer company
[4:29:05 PM ET] 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.
[4:29:05 PM ET] 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.
[4:29:06 PM ET] operated openings in fiscal twenty twenty seven and a stronger healthier pipeline beyond that
[4:29:10 PM ET] as we do this work we'll continue investing in our uplift program
[4:29:10 PM ET] 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.
[4:29:13 PM ET] we expect to complete more than two thousand uplifts in fiscal twenty twenty seven
[4:29:16 PM ET] we'll also work to grow our north america license business bringing the starbucks
[4:29:16 PM ET] experience to even more customers
[4:29:20 PM ET] 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.
[4:29:20 PM ET] we expect international to lead our global unit growth this fiscal year
[4:29:23 PM ET] with net new coffeehouse openings accelerating by nearly
[4:29:26 PM ET] fifty percent compared to fiscal twenty twenty six it will take time which means we expect fewer company
[4:29:30 PM ET] 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.
[4:29:30 PM ET] operated openings in fiscal twenty twenty seven and a stronger healthier pipeline beyond that
[4:29:34 PM ET] as we do this work we'll continue investing in our uplift program
[4:29:37 PM ET] we expect to complete more than two thousand uplifts in fiscal twenty twenty seven
[4:29:40 PM ET] we'll also work to grow our north america license business bringing the starbucks experience to
[4:29:40 PM ET] 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.
[4:29:40 PM ET] even more customers
[4:29:44 PM ET] we expect international to lead our global unit growth this fiscal year
[4:29:47 PM ET] with net new coffeehouse openings accelerating by nearly fifty percent
[4:29:50 PM ET] 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.
[4:29:50 PM ET] to fiscal twenty twenty six that translates to about three new coffeehouses a day
[4:29:54 PM ET] beyond fiscal twenty seven we see substantial room to grow our footprint outside north
[4:29:58 PM ET] from more than twenty three thousand international in our uplift program
[4:30:00 PM ET] 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,
[4:30:01 PM ET] we expect to complete more than two thousand uplifts in fiscal twenty seven
[4:30:04 PM ET] we'll also work to grow our north america license business
[4:30:04 PM ET] bringing the starbucks experience to even more customers
[4:30:08 PM ET] we expect international to lead our global unit growth this fiscal year
[4:30:10 PM ET] 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.
[4:30:12 PM ET] with net new coffeehouse openings accelerating by nearly fifty percent compared to
[4:30:14 PM ET] fiscal twenty twenty six that translates to about three new coffeehouses a day
[4:30:18 PM ET] beyond fiscal twenty seven we see substantial room to grow our footprint outside north
[4:30:20 PM ET] 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.
[4:30:22 PM ET] from more than twenty three thousand international coffee houses today
[4:30:23 PM ET] to nearly forty thousand over the long term
[4:30:26 PM ET] that includes the potential to double our presence in china and india
[4:30:28 PM ET] with meaningful growth across other regions
[4:30:30 PM ET] 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.
[4:30:31 PM ET] fifth create more opportunity for partners
[4:30:35 PM ET] our hourly partner turnover rate remains well below the industry average
[4:30:38 PM ET] driven by what third party studies confirm our industry leading pay and benefits
[4:30:40 PM ET] 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,
[4:30:41 PM ET] as well as improved staffing and flexible schedules that give partners the hours they want to work
[4:30:45 PM ET] and in fiscal twenty seven we'll expand coffee house coaches to more north american coffee houses
[4:30:49 PM ET] giving experienced partners more opportunities for advancement
[4:30:50 PM ET] 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.
[4:30:50 PM ET] while building a pipeline of talent to support future coffee house growth
[4:30:54 PM ET] we'll pair that with more training and development opportunities
[4:30:56 PM ET] and better tools for leaders to build and manage strong teams
[4:31:00 PM ET] dedication were critical to delivering our back-to-Starbucks priorities. Now, to our fourth quarter results and outlook. Fourth quarter consolidated net revenue.
[4:31:00 PM ET] taken together these priorities give us clear direction and confidence in the path
[4:31:00 PM ET] ahead
[4:31:04 PM ET] back to starbucks started as a turnaround plan and it put us back in a position of strength
[4:31:05 PM ET] today
[4:31:06 PM ET] back to starbucks is our growth plan
[4:31:07 PM ET] to conclude
[4:31:10 PM ET] revenues were $9.1 billion, down 3.9% year over year, primarily reflecting Starbucks China's transition from company-operated to a licensed joint.
[4:31:12 PM ET] fiscal twenty six was a tremendous year of progress and results
[4:31:12 PM ET] and it gives us confidence in our trajectory
[4:31:14 PM ET] we're ahead of schedule in relation to our fiscal twenty twenty eight framework
[4:31:18 PM ET] and we see a clear path to consistent comp growth and stronger earnings in fiscal twenty twenty seven
[4:31:20 PM ET] joint venture. Global comps grew 7.2%, our fifth consecutive positive quarter. North America net revenues grew 6.3%.
[4:31:20 PM ET] to our partners around the world thank you
[4:31:24 PM ET] the progress we've made reflects your focus ownership and belief in our brand promise
[4:31:26 PM ET] i'm confident we'll keep building on what is working
[4:31:30 PM ET] 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
[4:31:30 PM ET] raising the bar and bringing the best of starbucks to even more customers around the world
[4:31:34 PM ET] with that i'll turn it over to kathy to take you through our results in more detail
[4:31:35 PM ET] and our fiscal twenty twenty seven guidance
[4:31:39 PM ET] thank you brian and thank you all for joining us today
[4:31:40 PM ET] healthy balance of transactions up 2.4% and ticket up 5.2%. Contribution from transactions moderated from Q3.
[4:31:42 PM ET] in fiscal twenty twenty six we strengthened the fundamentals of our business
[4:31:45 PM ET] and that work is increasingly showing up in our financial performance
[4:31:49 PM ET] i'd like to also thank our partners whose focus and dedication were
[4:31:50 PM ET] particularly as we began to lap the growth from last year. On a two-year basis, U.S. transaction comps improved sequentially from Q3.
[4:31:51 PM ET] critical to delivering our back to starbucks priorities
[4:31:53 PM ET] now to our fourth quarter results and outlook
[4:31:57 PM ET] fourth quarter consolidated net revenues
[4:31:59 PM ET] nine point one billion dollars down three point nine percent year over year
[4:32:00 PM ET] 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.
[4:32:03 PM ET] primarily reflecting starbucks china's transition from company operated
[4:32:04 PM ET] to a licensed joint venture
[4:32:07 PM ET] global comps grew seven point two percent
[4:32:09 PM ET] our fifth consecutive positive quarter
[4:32:10 PM ET] access points. Ticket growth continued to reflect balanced contribution from pricing, attach, mix, and delivery growth, with pricing and mix including.
[4:32:13 PM ET] north america net revenues grew six point three
[4:32:13 PM ET] percent to seven point three billion dollars
[4:32:15 PM ET] led by strong company operated comps
[4:32:17 PM ET] in both the u s and canada
[4:32:20 PM ET] 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.
[4:32:21 PM ET] u s comps grew seven point seven percent
[4:32:22 PM ET] with a healthy balance of transactions up two point four percent
[4:32:24 PM ET] and ticket up five point two percent
[4:32:28 PM ET] contribution from transactions moderated from q3
[4:32:30 PM ET] 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.
[4:32:31 PM ET] particularly as we began to lap the growth from last year
[4:32:36 PM ET] on a two year basis u s transaction comps improved sequentially from q3
[4:32:38 PM ET] a sign that customers continue to choose us more often
[4:32:40 PM ET] 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.
[4:32:40 PM ET] and as brian mentioned
[4:32:44 PM ET] we delivered growth across all dayparts income levels and access points
[4:32:48 PM ET] ticket growth continued to reflect
[4:32:49 PM ET] balanced contribution from pricing attach
[4:32:50 PM ET] 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.
[4:32:52 PM ET] mix and delivery growth with pricing and mix including merchandise
[4:32:55 PM ET] driving most of the sequential improvement from q3
[4:32:59 PM ET] we've been very pleased with our delivery performance
[4:33:00 PM ET] into higher frequency tiers, and Starbucks Rewards members led our transaction and sales growth in the quarter. North America licensed revenues grew 2%.
[4:33:02 PM ET] in the us with revenues more than tripling over the past five years
[4:33:04 PM ET] and these transactions have been largely incremental
[4:33:08 PM ET] expanding delivery to more coffee houses supported our growth in fiscal twenty twenty six
[4:33:10 PM ET] 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.
[4:33:12 PM ET] and with delivery soon to be fully integrated into the starbucks app
[4:33:14 PM ET] we see additional runway in fiscal twenty twenty seven
[4:33:18 PM ET] we're also driving the engagement we want to see in our starbucks rewards
[4:33:18 PM ET] program
[4:33:20 PM ET] quarter with 18,176 coffee houses in North America. This reflects 247 company-operated net closures, primarily from
[4:33:22 PM ET] ninety day active members reached a record thirty six million in the quarter
[4:33:25 PM ET] more members are moving into higher frequency tiers
[4:33:29 PM ET] and starbucks rewards members led our transaction and sales growth in the quarter
[4:33:30 PM ET] 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.
[4:33:30 PM ET] quarter with 18,176 coffee houses in North America. This reflects 247 company-operated net closures, primarily from
[4:33:30 PM ET] from last month's portfolio actions, and partially offset by 52 net licensed openings. Moving to international.
[4:33:33 PM ET] north america license revenues grew two point six percent in q4
[4:33:35 PM ET] last month's portfolio actions, and partially offset by 52 net licensed openings. Moving to international, the
[4:33:37 PM ET] reflecting a third consecutive quarter of positive system wide comps
[4:33:38 PM ET] and strength across broader retail travel and leisure
[4:33:40 PM ET] segment delivered Q4 net revenues of $1.3 billion and operating income of $261.3 million with positive system-wide comps.
[4:33:43 PM ET] we ended the quarter with eighteen thousand one hundred and seventy six
[4:33:43 PM ET] coffee houses in north america
[4:33:47 PM ET] this reflects two forty seven company operated net closures
[4:33:50 PM ET] comps across our diversified portfolio. International company-operated comps, which are now largely comprised of Japan and the UK, grew 0.9%.
[4:33:51 PM ET] primarily from six percent in q4 reflecting a third consecutive quarter of positive
[4:33:54 PM ET] system wide comps and strength across broader retail travel and leisure
[4:33:59 PM ET] we ended the quarter with eighteen thousand one hundred and seventy six
[4:33:59 PM ET] coffee houses in north america
[4:34:00 PM ET] 0.9%. We had exceptional performance in the UK, balanced by tougher comparisons in Japan. As a reminder, Starbucks China's retail.
[4:34:03 PM ET] this reflects two forty seven company operated net closures
[4:34:07 PM ET] primarily from last month's portfolio actions and partially offset
[4:34:09 PM ET] by fifty two net licensed openings
[4:34:10 PM ET] retail operations are now deconsolidated from our financials and reported as a licensed business. With our 40% joint venture economics reported in income from
[4:34:13 PM ET] moving to international
[4:34:15 PM ET] this is from last month's portfolio actions and partially offset
[4:34:17 PM ET] by fifty two net licensed openings
[4:34:20 PM ET] 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.
[4:34:21 PM ET] moving to international
[4:34:23 PM ET] the segment delivered q4 net revenues of one point three billion dollars
[4:34:27 PM ET] and operating income of two hundred and sixty one point three million dollars
[4:34:28 PM ET] with positive system wide comps
[4:34:30 PM ET] Operations are now deconsolidated from our financials and reported as a licensed business. With our 40% joint venture economics reported in income from
[4:34:30 PM ET] across our diversified portfolio
[4:34:30 PM ET] 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.
[4:34:30 PM ET] International drove our unit growth in fiscal 26, ending Q4 with 23,431 coffee houses, including
[4:34:32 PM ET] international company operated comps
[4:34:35 PM ET] operations are now deconsolidated from our financials and reported as a licensed business. With our 40% joint venture economics reported in income from
[4:34:35 PM ET] 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.
[4:34:35 PM ET] International drove our unit growth in fiscal 26, ending Q4 with 23,431 coffee houses, including
[4:34:36 PM ET] which are now largely comprised of japan and the uk grew zero point nine percent
[4:34:40 PM ET] Include international drove our unit growth in fiscal 26, ending Q4 with 23,431 coffee houses.
[4:34:40 PM ET] including 498 net new openings in the fourth quarter. This demonstrates our continued confidence in the long-term opportunity to grow our brand globally.
[4:34:40 PM ET] we had exceptional performance in the uk balanced by
[4:34:41 PM ET] tougher comparisons in japan
[4:34:43 PM ET] as a reminder
[4:34:46 PM ET] starbucks china's retail operations are now deconsolidated
[4:34:48 PM ET] from our financials and reported as a licensed business
[4:34:50 PM ET] brand globally. In total, we ended fiscal 26 with 41,607 coffee houses globally, with 617 net.
[4:34:52 PM ET] with our forty percent joint venture economics reported in income from
[4:34:53 PM ET] equity investees
[4:34:55 PM ET] net international drove our unit growth in fiscal 26, ending Q4 with 23,431 coffee houses.
[4:34:55 PM ET] including 498 net new openings in the fourth quarter. This demonstrates our continued confidence in the long-term opportunity to grow our brand globally.
[4:34:55 PM ET] brand globally. In total, we ended fiscal 26 with 41,607 coffee houses globally, with 617 net.
[4:34:57 PM ET] this transition will continue to be the driver
[4:35:00 PM ET] of year over year changes in international through the first half of fiscal twenty twenty seven
[4:35:00 PM ET] net new openings for the full year, well ahead of our most recent expectations. In channel development, Q4 net revenues declined 8.9%.
[4:35:03 PM ET] our are now deconsolidated from our financials
[4:35:04 PM ET] and reported as a licensed business
[4:35:08 PM ET] with our forty percent joint venture economics reported in income from
[4:35:09 PM ET] equity investees
[4:35:10 PM ET] 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.
[4:35:13 PM ET] this transition will continue to be the driver of year over year changes
[4:35:16 PM ET] in international through the first half of fiscal twenty twenty seven
[4:35:20 PM ET] international drove our unit growth in fiscal twenty
[4:35:20 PM ET] first three quarters. Operating income was about flat year over year, despite the lower revenue base. With consumers remaining choiceful in their spending,
[4:35:23 PM ET] six ending q4 with twenty three thousand four hundred and thirty one coffee
[4:35:25 PM ET] at new openings for the full year, well ahead of our most recent expectations. In channel development, Q4Net revenues declined 8.9%.
[4:35:25 PM ET] 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,
[4:35:26 PM ET] including our operations are now deconsolidated
[4:35:28 PM ET] from our financials and reported as a licensed business
[4:35:30 PM ET] 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.
[4:35:32 PM ET] with our forty percent joint venture economics reported in income from
[4:35:33 PM ET] equity investees
[4:35:37 PM ET] this transition will continue to be the driver
[4:35:40 PM ET] of year over year changes in international through the first half of fiscal twenty twenty seven
[4:35:40 PM ET] and to build new occasions with offerings like refreshers and protein. Moving to margin, Q4 consolidated operating margin expanded 450 basis.
[4:35:44 PM ET] international drove our unit growth in fiscal twenty six
[4:35:45 PM ET] quarters. Operating income was about flat year over year, despite the lower revenue base. With consumers remaining choiceful in their spending,
[4:35:45 PM ET] 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.
[4:35:45 PM ET] and to build new occasions with offerings like refreshers and protein. Moving to margin, Q4 consolidated operating margin expanded 450 basis.
[4:35:47 PM ET] ending q4 with twenty three thousand four hundred and thirty one coffee houses
[4:35:48 PM ET] including
[4:35:50 PM ET] basis points to approximately 14%. This was our third consecutive quarter of margin expansion, with improvement across every segment.
[4:35:52 PM ET] international drove our unit growth in fiscal twenty six
[4:35:55 PM ET] ending q4 with twenty three thousand four hundred and thirty one coffee houses
[4:35:59 PM ET] including four ninety eight net new openings in the fourth quarter
[4:36:00 PM ET] North America operating margin expanded 440 basis points to approximately 16%, driven primarily by sales leverage, disciplined execution.
[4:36:03 PM ET] this demonstrates our continued confidence
[4:36:04 PM ET] in the long term opportunity to grow our brand globally
[4:36:08 PM ET] in total we ended fiscal twenty twenty six
[4:36:10 PM ET] 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.
[4:36:11 PM ET] with forty one thousand six hundred and seven coffee houses globally
[4:36:12 PM ET] with six seventeen net
[4:36:16 PM ET] international drove our unit growth in fiscal twenty six
[4:36:19 PM ET] ending q4 with twenty three thousand four hundred and thirty one coffee houses
[4:36:20 PM ET] partially offset by higher product and distribution costs, mainly from product mix. Coffee price impacts were roughly neutral in the quarter.
[4:36:23 PM ET] including four ninety eight net new openings in the fourth quarter
[4:36:27 PM ET] this demonstrates our continued confidence
[4:36:28 PM ET] in the long term opportunity to grow our brand globally
[4:36:30 PM ET] 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.
[4:36:30 PM ET] partially offset by higher product and distribution costs, mainly from product mix. Coffee price impacts were roughly neutral in the quarter.
[4:36:30 PM ET] Consolidated GNA declined approximately 20%, reflecting our cost savings efforts and China deconsolidation. Together, these results.
[4:36:32 PM ET] in total we ended fiscal twenty twenty six
[4:36:35 PM ET] validated GNA declined approximately 20%, reflecting our cost savings efforts and China deconsolidation. Together, these results.
[4:36:35 PM ET] with forty one thousand six hundred and seven coffee houses globally
[4:36:37 PM ET] with six seventeen net new openings for the full year
[4:36:40 PM ET] well ahead of our most recent expectations
[4:36:40 PM ET] 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.
[4:36:44 PM ET] in channel development q4 net revenues
[4:36:44 PM ET] declined eight point nine percent
[4:36:48 PM ET] to four hundred and ninety four point four million dollars led by the global coffee alliance
[4:36:50 PM ET] 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.
[4:36:51 PM ET] and the absence of coffee price related tailwinds
[4:36:52 PM ET] we saw in the first three quarters
[4:36:56 PM ET] operating income was about flat year over year
[4:36:57 PM ET] despite the lower revenue base
[4:37:00 PM ET] 24.7%. All in, fourth quarter EPS was 80 cents, up approximately 54 percent year over year.
[4:37:01 PM ET] with consumers remaining choiceful in their spending
[4:37:01 PM ET] at new openings for the full year
[4:37:04 PM ET] well ahead of our most recent expectations
[4:37:05 PM ET] reflects stronger execution with more of our sales growth flowing to the bottom line. Interest and other income of $59.2 million.
[4:37:05 PM ET] 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.
[4:37:05 PM ET] 24.7%. All in, fourth quarter EPS was 80 cents, up approximately 54 percent year over year.
[4:37:08 PM ET] in channel development q4 net revenues
[4:37:08 PM ET] declined eight point nine percent
[4:37:10 PM ET] 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.
[4:37:12 PM ET] to four hundred and ninety four point four million dollars led by the global coffee alliance
[4:37:15 PM ET] and the absence of coffee price related tailwinds
[4:37:16 PM ET] we saw in the first three quarters
[4:37:20 PM ET] underway. Turning to our outlook. In fiscal 27, we see multiple drivers of growth and a clear path to stronger earnings as we continue.
[4:37:20 PM ET] operating income was about flat year over year
[4:37:21 PM ET] despite the lower revenue base
[4:37:25 PM ET] seven percent. All in, fourth quarter EPS was eighty cents, up approximately fifty four percent year over year.
[4:37:25 PM ET] 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.
[4:37:25 PM ET] underway. Turning to our outlook. In fiscal 27, we see multiple drivers of growth and a clear path to stronger earnings as we continue.
[4:37:25 PM ET] with consumers remaining choiceful in their spending
[4:37:28 PM ET] we and our partners will continue to lean into innovation and marketing
[4:37:30 PM ET] continue advancing our long-term priorities. As a reminder, fiscal 27 is a 53-week year. Our guidance includes the extra week.
[4:37:31 PM ET] to maintain our number one position in at home and ready
[4:37:34 PM ET] to drink coffee in north america and to build new
[4:37:35 PM ET] 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.
[4:37:35 PM ET] underway. Turning to our outlook. In fiscal 27, we see multiple drivers of growth and a clear path to stronger earnings as we continue.
[4:37:35 PM ET] continue advancing our long-term priorities. As a reminder, fiscal 27 is a 53-week year. Our guidance includes the extra week.
[4:37:35 PM ET] occasions with offerings like refreshers and protein
[4:37:39 PM ET] moving to margin q4 consolidated
[4:37:40 PM ET] 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.
[4:37:41 PM ET] operating margin expanded four fifty basis to quarters
[4:37:45 PM ET] operating income was about flat year over year
[4:37:45 PM ET] despite the lower revenue base
[4:37:49 PM ET] with consumers remaining choiceful in their spending
[4:37:50 PM ET] revenues to decrease by approximately 1 percent year over year, including approximately $700 million of revenues related to the 53rd week. The expected decline.
[4:37:52 PM ET] we and our partners will continue to lean into innovation and marketing activations
[4:37:55 PM ET] to maintain our number one position in at home
[4:37:58 PM ET] and ready to drink coffee in north america and to build new occasions
[4:37:59 PM ET] with offerings like refreshers and protein
[4:38:00 PM ET] 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.
[4:38:03 PM ET] moving to margin q4 consolidated
[4:38:06 PM ET] operating margin expanded four fifty basis points
[4:38:06 PM ET] to approximately fourteen percent
[4:38:10 PM ET] revenues decrease by approximately 1% year over year, including approximately $700 million of revenues related to the 53rd week. The expected decline.
[4:38:10 PM ET] 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.
[4:38:10 PM ET] this was our third consecutive quarter of margin expansion
[4:38:10 PM ET] revenue expectations also include modest coffee deflation and the impact of fewer new North America coffee house openings. We expect full-year North America.
[4:38:11 PM ET] with improvement across every segment
[4:38:15 PM ET] Revenue expectations also include modest coffee deflation and the impact of fewer new North America coffeehouse openings.
[4:38:15 PM ET] north america operating margin expanded four forty basis points
[4:38:19 PM ET] to approximately sixteen percent driven primarily by sales leverage
[4:38:20 PM ET] 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
[4:38:21 PM ET] disciplined execution and cost savings
[4:38:25 PM ET] we also lapped our green apron service labor investments in august
[4:38:26 PM ET] which are now a part of our base
[4:38:30 PM ET] Revenue expectations also include modest coffee deflation and the impact of fewer new North America coffee house openings. We expect full-year North America.
[4:38:30 PM ET] 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
[4:38:30 PM ET] revenue growth will trail the segment's comp growth, reflecting the recent company-operated coffee house closures. In addition, we expect channel development.
[4:38:30 PM ET] these benefits were partially offset by higher product and distribution costs
[4:38:32 PM ET] mainly from product mix
[4:38:35 PM ET] coffee price impacts were roughly neutral in the quarter
[4:38:35 PM ET] new growth will trail the segment's comp growth, reflecting the recent company-operated coffeehouse closures. In addition, we expect channel development.
[4:38:37 PM ET] consolidation and cost savings
[4:38:40 PM ET] net revenues to decline by approximately 10%, also heavily influenced by coffee price trends. In the U.S., consumers are increasingly prioritizing.
[4:38:41 PM ET] we also lapped our green apron service labor investments in august
[4:38:42 PM ET] which are now a part of our base
[4:38:46 PM ET] these benefits were partially offset by higher product and distribution costs
[4:38:48 PM ET] mainly from product mix
[4:38:50 PM ET] growth will trail the segment's comp growth, reflecting the recent company-operated coffee house closures. In addition, we expect channel development.
[4:38:50 PM ET] net revenues to decline by approximately 10%, also heavily influenced by coffee price trends. In the U.S., consumers are increasingly prioritizing.
[4:38:50 PM ET] prioritizing experiences that feel worth it. That reinforces our focus on quality, craft, and connection, and on delivering a consistently great customer.
[4:38:51 PM ET] coffee price impacts were roughly neutral in the quarter
[4:38:55 PM ET] consolidated g and a declined approximately twenty percent
[4:38:55 PM ET] customerizing experiences that feel worth it. That reinforces our focus on quality, craft, and connection, and on delivering a consistently great customer.
[4:38:58 PM ET] reflecting our cost savings efforts and china deconsolidation
[4:38:59 PM ET] together
[4:39:00 PM ET] net revenues to decline by approximately 10%, also heavily influenced by coffee price trends. In the U.S., consumers are increasingly prioritizing.
[4:39:00 PM ET] prioritizing experiences that feel worth it. That reinforces our focus on quality, craft, and connection, and on delivering a consistently great customer.
[4:39:00 PM ET] customer experience. We expect fiscal 27 North America comps to grow approximately 4%, led by beverage and food innovation, green apron service.
[4:39:05 PM ET] net revenues to decline by approximately 10%, also heavily influenced by coffee price trends. In the U.S., consumers are increasingly prioritizing.
[4:39:05 PM ET] prioritizing experiences that feel worth it. That reinforces our focus on quality, craft, and connection, and on delivering a consistently great customer.
[4:39:05 PM ET] customer experience. We expect fiscal 27 North America comps to grow approximately 4%, led by beverage and food innovation, green apron service.
[4:39:10 PM ET] experience. We expect fiscal 27 North America comps to grow approximately 4%, led by beverage and food innovation, green apron.
[4:39:10 PM ET] apron service, delivery, and a small contribution from uplifts and sales transfer from coffee house closures. Any pricing will remain focused and well.
[4:39:20 PM ET] below CPI. We expect fiscal 27's cadence of U.S. comps to be more balanced across the quarters than fiscal 26. Specifically,
[4:39:30 PM ET] 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.
[4:39:31 PM ET] expect
[4:39:34 PM ET] less variability between q1 and the rest of the year
[4:39:37 PM ET] also moving forward we'll focus our annual comp guidance on our north america company
[4:39:40 PM ET] It is the primary driver of our underlying comp performance as our international portfolio is now predominantly licensed. We expect fiscal 2020.
[4:39:42 PM ET] operated business it is the primary driver of our underlying comp performance
[4:39:45 PM ET] as our international portfolio is now predominantly licensed
[4:39:45 PM ET] below CPI. We expect fiscal 27's cadence of U.S. comps to be more balanced across the quarters than fiscal 26. Specifically,
[4:39:45 PM ET] 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.
[4:39:47 PM ET] we expect fiscal to be below cpi
[4:39:50 PM ET] 27 consolidated operating margin of 13.5 to 14 percent, up approximately 190 basis points at the midpoint. This is led by
[4:39:51 PM ET] we expect fiscal twenty twenty seven's cadence
[4:39:54 PM ET] of u s comps to be more balanced across the quarters than fiscal twenty twenty six
[4:39:57 PM ET] specifically we expect less variability between q1 and the rest
[4:39:58 PM ET] rest of the year
[4:40:00 PM ET] by our North America business and supported by sales leverage and our focus on disciplined coffeehouse execution. In addition, we remain on
[4:40:02 PM ET] also moving forward we'll focus our annual comp guidance on our north america company
[4:40:06 PM ET] operated business it is the primary driver of our underlying comp performance
[4:40:09 PM ET] as our international portfolio is now predominantly licensed
[4:40:10 PM ET] 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.
[4:40:13 PM ET] we expect fiscal twenty twenty seven consolidated operating margin of
[4:40:14 PM ET] thirteen point five percent to fourteen percent
[4:40:17 PM ET] up approximately one hundred and ninety basis points at the midpoint
[4:40:20 PM ET] 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.
[4:40:21 PM ET] this is led by our north america business
[4:40:21 PM ET] and supported by sales leverage
[4:40:24 PM ET] and our focus on disciplined coffeehouse execution
[4:40:28 PM ET] in addition we remain on track with our cost savings work
[4:40:30 PM ET] service. In GNA, we continue to realize savings from actions we took last year and expect consolidated GNA dollars to be flat to slow.
[4:40:31 PM ET] which we expect to continue realizing through fiscal twenty twenty eight
[4:40:35 PM ET] and to date we've realized roughly half of those gross savings
[4:40:38 PM ET] we expect benefits to operating margin to become more
[4:40:40 PM ET] 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.
[4:40:41 PM ET] evident in fiscal twenty twenty seven as we now have lapped
[4:40:42 PM ET] our labor investments in green apron service
[4:40:46 PM ET] in g and a we continue to realize savings from
[4:40:50 PM ET] 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.
[4:40:50 PM ET] actions we took last year and expect consolidated g and a dollars to be flat
[4:40:52 PM ET] to slightly down year over year
[4:40:56 PM ET] for international we expect operating margin to begin
[4:40:59 PM ET] the year at around twenty percent and improve slightly through the year supported by sales
[4:41:00 PM ET] over the longer term. For tax, we expect our effective tax rate will be roughly in line with or slightly below fiscal 26.
[4:41:01 PM ET] leverage and our capital efficient licensed model
[4:41:05 PM ET] 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.
[4:41:05 PM ET] 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.
[4:41:05 PM ET] over the longer term. For tax, we expect our effective tax rate will be roughly in line with or slightly below fiscal 26.
[4:41:05 PM ET] and in channel development we expect operating margin to remain in the mid
[4:41:06 PM ET] to high forty percent range
[4:41:07 PM ET] over the longer term
[4:41:10 PM ET] Putting it all together, we expect EPS of $3.15 to $3.25, growing close to 18% year-over-year.
[4:41:11 PM ET] for tax we expect our effective tax rate
[4:41:14 PM ET] will be roughly in line with or slightly below fiscal twenty six
[4:41:15 PM ET] slightly down year over year
[4:41:19 PM ET] for international we expect operating margin to begin
[4:41:20 PM ET] over the longer term. For tax, we expect our effective tax rate will be roughly in line with or slightly below fiscal 26.
[4:41:20 PM ET] Putting it all together, we expect EPS of $3.15 to $3.25, growing close to 18% year-over-year.
[4:41:20 PM ET] 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.
[4:41:23 PM ET] the year at around twenty percent and improve slightly through the year supported by sales
[4:41:25 PM ET] expier at the midpoint. Our guidance includes a benefit of slightly more than 10 cents related to the 53rd week. Finally, we expier.
[4:41:25 PM ET] and our capital efficient licensed model
[4:41:29 PM ET] and in channel development we expect operating margin to remain in the
[4:41:30 PM ET] 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.
[4:41:30 PM ET] mid to high forty percent range
[4:41:31 PM ET] over the longer term
[4:41:35 PM ET] for tax we expect our effective tax rate
[4:41:37 PM ET] will be roughly in line with or slightly below fiscal twenty twenty six
[4:41:40 PM ET] 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.
[4:41:41 PM ET] putting it all together we expect eps
[4:41:42 PM ET] of three point one five dollars
[4:41:44 PM ET] to three point two five dollars
[4:41:47 PM ET] growing close to eighteen percent year over year over the longer term
[4:41:50 PM ET] 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.
[4:41:50 PM ET] 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.
[4:41:50 PM ET] 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.
[4:41:51 PM ET] for tax we expect our effective tax rate
[4:41:54 PM ET] will be roughly in line with or slightly below fiscal twenty twenty six
[4:41:55 PM ET] 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.
[4:41:57 PM ET] putting it all together we
[4:41:58 PM ET] expect eps of three point one five dollars
[4:42:00 PM ET] Fiscal 27 is an important step toward our fiscal 28 framework. We're tracking ahead of pace toward our 2028 goals.
[4:42:00 PM ET] to three point two five dollars
[4:42:03 PM ET] growing close to eighteen percent year over year at the midpoint
[4:42:05 PM ET] 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.
[4:42:05 PM ET] 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.
[4:42:05 PM ET] Fiscal 27 is an important step toward our fiscal 28 framework. We're tracking ahead of pace toward our 2028 goals.
[4:42:07 PM ET] our guidance includes a benefit of slightly more than point one zero dollars
[4:42:09 PM ET] related to the fifty third week
[4:42:10 PM ET] and we remain focused on building from here. Our capital allocation priorities remain investing in the business with discipline, maintaining our investment.
[4:42:11 PM ET] finally we expect the year at the midpoint
[4:42:15 PM ET] 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.
[4:42:15 PM ET] Fiscal 27 is an important step toward our fiscal 28 framework. We're tracking ahead of pace toward our 2028 goals.
[4:42:15 PM ET] and we remain focused on building from here. Our capital allocation priorities remain investing in the business with discipline, maintaining our investment.
[4:42:16 PM ET] our guidance includes a benefit of slightly more than zero one zero dollars related to the fifty
[4:42:17 PM ET] third week
[4:42:20 PM ET] Fiscal 27 is an important step toward our fiscal 28 framework. We're tracking ahead of pace toward our 2028 goals.
[4:42:20 PM ET] and we remain focused on building from here. Our capital allocation priorities remain investing in the business with discipline, maintaining our investment.
[4:42:20 PM ET] investment-grade balance sheet and supporting a competitive dividend. We recently raised our quarterly dividend to 63 cents per share, our 16th competitive.
[4:42:22 PM ET] finally we expect approximately twelve hundred net new coffee houses globally in fiscal
[4:42:25 PM ET] grade balance sheet and supporting a competitive dividend. We recently raised our quarterly dividend to 63 cents per share, our 16th competitive.
[4:42:25 PM ET] twenty twenty seven international is expected to drive much of this growth
[4:42:28 PM ET] at approximately eleven hundred net new openings with china contributing about half
[4:42:30 PM ET] consecutive annual increase. We also expect to deploy approximately $1 billion toward share repurchases, reflecting our confidence in the
[4:42:33 PM ET] in north america we expect ninety to one hundred net new coffee houses
[4:42:33 PM ET] for the year
[4:42:37 PM ET] about half is expected to expect approximately twelve hundred net new coffee houses globally in
[4:42:40 PM ET] the business and our plan. In fiscal 27, we expect capital expenditures to be approximately 5% of net revenues, primarily as we continue investing.
[4:42:41 PM ET] fiscal twenty twenty seven international is expected to drive much of this growth
[4:42:44 PM ET] at approximately eleven hundred net new openings with china contributing about half
[4:42:49 PM ET] in north america we expect ninety to one hundred net new coffee houses
[4:42:49 PM ET] for the year
[4:42:50 PM ET] consecutive annual increase. We also expect to deploy approximately $1 billion towards share repurchases, reflecting our confidence in the
[4:42:50 PM ET] the business and our plan. In fiscal 27, we expect capital expenditures to be approximately 5% of net revenues, primarily as we continue investing.
[4:42:50 PM ET] investing in uplifts and our back-to-Starbucks priorities. To conclude, fiscal 26 demonstrated the meaningful progress we're making and gives.
[4:42:53 PM ET] about half is expected to come from our licensed portfolio
[4:42:55 PM ET] investing in uplifts and our back to Starbucks priorities. To conclude, fiscal 26 demonstrated the meaningful progress we're making and gifts.
[4:42:56 PM ET] the balance is expected to come from our company operated business
[4:42:57 PM ET] as we rebuild the development pipeline brian discussed
[4:43:00 PM ET] 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
[4:43:02 PM ET] it did come from our licensed portfolio
[4:43:04 PM ET] the balance is expected to come from our company operated business
[4:43:06 PM ET] as we rebuild the development pipeline brian discussed
[4:43:08 PM ET] fiscal twenty twenty seven is an important step
[4:43:10 PM ET] discipline and delivering sustainable growth and long term shareholder value. And with that, we are now ready to take your questions.
[4:43:10 PM ET] toward our fiscal twenty eight framework
[4:43:14 PM ET] we're tracking ahead of pace toward our twenty twenty eight goals
[4:43:17 PM ET] and new openings with china contributing about half
[4:43:20 PM ET] 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.
[4:43:21 PM ET] in north america we expect ninety to one hundred net
[4:43:21 PM ET] new coffee houses for the year
[4:43:25 PM ET] Back to Starbucks has moved us from turnaround to growth, and our priorities are clear. We're focused on executing with
[4:43:25 PM ET] discipline and delivering sustainable growth and long term shareholder value. And with that, we are now ready to take your questions.
[4:43:25 PM ET] 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.
[4:43:25 PM ET] about half is expected to come from our licensed portfolio
[4:43:28 PM ET] the balance is expected to come from our company operated business
[4:43:30 PM ET] as we rebuild the development pipeline brian discussed
[4:43:30 PM ET] to discipline and deliver sustainable growth and long-term shareholder value. And with that, we are now ready to take your questions.
[4:43:30 PM ET] 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.
[4:43:30 PM ET] 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.
[4:43:32 PM ET] fiscal twenty twenty seven is an important step
[4:43:34 PM ET] toward our fiscal twenty eight framework
[4:43:35 PM ET] 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.
[4:43:38 PM ET] we're tracking ahead of pace toward our twenty twenty eight goals
[4:43:40 PM ET] allows. And your first question comes from Brian Harbour with Morgan Stanley. Please state your question.
[4:43:40 PM ET] and we remain focused on building from here
[4:43:44 PM ET] our capital allocation priorities remain investing in the business
[4:43:48 PM ET] with discipline maintaining our investment to come from our licensed portfolio
[4:43:52 PM ET] the balance is expected to come from our company operated business
[4:43:54 PM ET] as we rebuild the development pipeline brian discussed
[4:43:57 PM ET] fiscal twenty twenty seven is an important step
[4:43:57 PM ET] Yeah, thanks. Good afternoon, guys. In guiding 4% same-store sales this year, I mean, that is very specific.
[4:43:58 PM ET] toward our fiscal twenty eight framework
[4:44:00 PM ET] 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
[4:44:02 PM ET] we're tracking ahead of pace toward our twenty twenty eight goals
[4:44:04 PM ET] and we remain focused on building from here
[4:44:05 PM ET] And your first question comes from Brian Harbor with Morgan Stanley. Please state your question.
[4:44:05 PM ET] 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
[4:44:08 PM ET] our capital allocation priorities remain investing in the business with
[4:44:10 PM ET] plus. You know, thanks. Good afternoon, guys. In guiding 4% Seamster sales this year, I mean, that is very specific.
[4:44:10 PM ET] 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?
[4:44:11 PM ET] discipline maintaining our investment
[4:44:13 PM ET] fiscal twenty twenty seven is an important step
[4:44:14 PM ET] toward our fiscal twenty eight framework
[4:44:15 PM ET] 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?
[4:44:18 PM ET] we're tracking ahead of pace toward our twenty twenty eight goals
[4:44:20 PM ET] 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
[4:44:20 PM ET] 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?
[4:44:20 PM ET] and we remain focused on building from here
[4:44:24 PM ET] our capital allocation priorities remain
[4:44:25 PM ET] 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?
[4:44:28 PM ET] investing in the business with discipline maintaining our investment grade balance sheet
[4:44:29 PM ET] and supporting a competitive dividend
[4:44:30 PM ET] 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
[4:44:33 PM ET] we recently raised our quarterly dividend to zero six three dollars per share
[4:44:37 PM ET] our sixteenth balance sheet and supporting a competitive dividend
[4:44:40 PM ET] 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
[4:44:41 PM ET] we recently raised our quarterly dividend to zero six three dollars per share
[4:44:44 PM ET] our sixteenth consecutive annual increase
[4:44:46 PM ET] we also expect to deploy
[4:44:49 PM ET] approximately one billion dollars towards share repurchases
[4:44:50 PM ET] 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.
[4:44:52 PM ET] reflecting our confidence in the business and our plan
[4:44:56 PM ET] in fiscal twenty twenty seven we expect capital expenditures to be approximately
[4:44:57 PM ET] five percent of net revenues
[4:45:00 PM ET] primarily as we continue in consecutive annual increase
[4:45:00 PM ET] 28. And we just see strength in the business that gave us the confidence to commit to 4% comps.
[4:45:04 PM ET] we also expect to deploy
[4:45:05 PM ET] approximately one billion dollars towards share repurchases
[4:45:08 PM ET] reflecting our confidence in the business and our plan
[4:45:10 PM ET] 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.
[4:45:12 PM ET] in fiscal twenty twenty seven we expect capital expenditures to be
[4:45:13 PM ET] approximately five percent of net revenues
[4:45:17 PM ET] primarily as we continue investing in uplifts
[4:45:17 PM ET] and our back to starbucks priorities
[4:45:19 PM ET] to conclude
[4:45:20 PM ET] 28? And we just see strength in the business that gave us the confidence to commit to 4% comps.
[4:45:20 PM ET] 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.
[4:45:23 PM ET] fiscal twenty twenty six demonstrated the meaningful progress we're making
[4:45:25 PM ET] 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.
[4:45:25 PM ET] and gives us an back to starbucks priorities
[4:45:27 PM ET] to conclude
[4:45:30 PM ET] 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.
[4:45:30 PM ET] 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.
[4:45:31 PM ET] fiscal twenty twenty six demonstrated the meaningful progress we're making
[4:45:32 PM ET] and gives us confidence in the path ahead
[4:45:34 PM ET] back to starbucks has moved us
[4:45:35 PM ET] 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.
[4:45:35 PM ET] from turnaround to growth
[4:45:35 PM ET] 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.
[4:45:37 PM ET] and our priorities are clear
[4:45:40 PM ET] thank you. Thank you. And your next question comes from Danilo Gargiolo with Bernstein. Please steer your question. Great, thank you.
[4:45:40 PM ET] 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
[4:45:41 PM ET] we're focused on executing with discipline and delivering sustainable growth
[4:45:42 PM ET] and long term shareholder value
[4:45:43 PM ET] and with that we
[4:45:45 PM ET] are now ready to take your questions
[4:45:49 PM ET] we will now begin our question and answer session
[4:45:50 PM ET] 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
[4:45:53 PM ET] then the number one on your telephone keypad
[4:45:56 PM ET] in order confidence in the path ahead
[4:45:58 PM ET] back to starbucks has moved us
[4:45:59 PM ET] from turnaround to growth
[4:46:00 PM ET] 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.
[4:46:01 PM ET] and our priorities are clear
[4:46:05 PM ET] we're focused on executing with discipline and delivering sustainable growth
[4:46:06 PM ET] and long term shareholder value
[4:46:07 PM ET] and with that we
[4:46:09 PM ET] are now ready to take your questions
[4:46:10 PM ET] 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
[4:46:13 PM ET] we will now begin our question and answer session
[4:46:17 PM ET] on your telephone keypad
[4:46:20 PM ET] 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.
[4:46:21 PM ET] in order discipline and delivering sustainable growth
[4:46:22 PM ET] and long term shareholder value
[4:46:23 PM ET] and with that
[4:46:25 PM ET] are now ready to take your questions
[4:46:29 PM ET] we will now begin our question and answer session
[4:46:30 PM ET] 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
[4:46:30 PM ET] 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.
[4:46:33 PM ET] then the number one on your telephone keypad
[4:46:35 PM ET] 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.
[4:46:36 PM ET] in order to allow as many questions as possible
[4:46:40 PM ET] 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.
[4:46:40 PM ET] we ask you to please limit yourself to one question at a time
[4:46:43 PM ET] we will come back for follow-up questions as time allows
[4:46:44 PM ET] to allow as many questions as possible
[4:46:48 PM ET] we ask you to please limit yourself to one question at a time
[4:46:50 PM ET] 50% of the $2 billion growth savings program achieved. And this year, more towards GNA, as we always shared. Next would be office.
[4:46:51 PM ET] we will come back for follow-up questions as time allows
[4:46:55 PM ET] 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.
[4:46:55 PM ET] 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.
[4:46:57 PM ET] and your first question comes from brian harbour with morgan stanley
[4:46:57 PM ET] please state your question
[4:47:00 PM ET] 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.
[4:47:03 PM ET] thanks good afternoon guys in guiding
[4:47:07 PM ET] four percent same store sales this year i mean that is very specific you had
[4:47:10 PM ET] because of just the realities of getting new products online with new vendors. Sometimes we have to let existing contracts finish.
[4:47:11 PM ET] the three percent plus algo
[4:47:14 PM ET] so should we think about that as being you essentially view this as an on algo europe
[4:47:15 PM ET] plus
[4:47:20 PM ET] 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.
[4:47:20 PM ET] 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.
[4:47:25 PM ET] 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.
[4:47:25 PM ET] 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.
[4:47:30 PM ET] 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.
[4:47:30 PM ET] 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.
[4:47:40 PM ET] 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.
[4:47:50 PM ET] 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
[4:48:00 PM ET] 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.
[4:48:00 PM ET] 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.
[4:48:05 PM ET] 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.
[4:48:05 PM ET] as you've seen the most of that this year we'll have a little bit of benefit from the
[4:48:07 PM ET] calendarization of the work we did this year
[4:48:10 PM ET] 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.
[4:48:10 PM ET] yeah yeah the only thing i would add to what kathy said is just
[4:48:12 PM ET] you remember at our investor day we we
[4:48:16 PM ET] targeted the idea of thirteen and a half to fifteen percent
[4:48:19 PM ET] margins by fiscal year twenty eight and i think the fact that we are already
[4:48:20 PM ET] 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.
[4:48:22 PM ET] believing we will achieve that low end of that guidance in fiscal year twenty
[4:48:25 PM ET] seven speaks to i think the excellent work
[4:48:26 PM ET] on the cost that we are already
[4:48:30 PM ET] David Palmer with EverCorp ISI. Please state your question. Thanks. I wanted to ask a question about the company unit.
[4:48:30 PM ET] believing we will achieve that low end of that
[4:48:33 PM ET] guidance in fiscal year twenty seven speaks to i think the excellent work
[4:48:37 PM ET] on the cost but also the fundamentals that are
[4:48:40 PM ET] driving the top line in transaction so the fact that we're already hitting what we were
[4:48:40 PM ET] unit growth in the United States, Americas. I think you s your comment was that net unit growth would be something south of 100.
[4:48:44 PM ET] guiding for twenty eight the low end in twenty seven i think just
[4:48:45 PM ET] 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.
[4:48:45 PM ET] 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.
[4:48:46 PM ET] speaks to the strength of the business and the operating discipline that we have on cost
[4:48:50 PM ET] I think maybe closer to 40 to 50 this year. Could you speak to maybe the ramp that you see going into, you know?
[4:48:50 PM ET] your next question comes from david palmer
[4:48:52 PM ET] with evercore isi please state your question
[4:48:56 PM ET] thanks i wanted to ask
[4:48:59 PM ET] question about the company unit growth
[4:49:00 PM ET] 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
[4:49:02 PM ET] in the united states americas
[4:49:03 PM ET] i think your comment was net unit growth
[4:49:04 PM ET] would be something
[4:49:09 PM ET] south of a hundred in twenty seven i think just speaks to the strength of the business
[4:49:10 PM ET] I think maybe closer to 40 to 50 this year. Could you speak to maybe the ramp that you see going into, you know?
[4:49:10 PM ET] and the operating discipline that we have on cost
[4:49:10 PM ET] 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
[4:49:14 PM ET] your next question comes
[4:49:15 PM ET] 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
[4:49:16 PM ET] from david palmer with evercore isi please state your question
[4:49:20 PM ET] 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.
[4:49:20 PM ET] thanks i wanted to ask
[4:49:23 PM ET] question about the company unit growth
[4:49:26 PM ET] in the united states americas
[4:49:28 PM ET] think your comment was that net unit growth would be something
[4:49:30 PM ET] 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.
[4:49:32 PM ET] south of one hundred i think maybe closer to forty to fifty
[4:49:32 PM ET] this year
[4:49:36 PM ET] could you speak to maybe the ramp that you see
[4:49:40 PM ET] going into longer term going forward i know there's
[4:49:40 PM ET] 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.
[4:49:43 PM ET] capabilities that have to be added back and if i
[4:49:46 PM ET] could throw in one other thing the technology tests that you're talking about
[4:49:48 PM ET] i think maybe closer to forty to fifty
[4:49:48 PM ET] this year
[4:49:50 PM ET] 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.
[4:49:52 PM ET] could you speak to maybe the ramp that you see
[4:49:56 PM ET] going into longer term going forward i know there's capabilities that have
[4:50:00 PM ET] 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.
[4:50:00 PM ET] to be added back and if i could throw in one other thing
[4:50:02 PM ET] the technology test that you're talking about sounds like
[4:50:04 PM ET] a lot of that's going to help the drive through and
[4:50:08 PM ET] and could you just give us a sense of timetable if that works
[4:50:10 PM ET] and if it does work what it sounds like
[4:50:10 PM ET] 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
[4:50:12 PM ET] a lot of that's going to help the drive through and
[4:50:16 PM ET] and could you just give us a sense of timetable if that works
[4:50:20 PM ET] and if it does work what metrics do you think that will affect sales or
[4:50:20 PM ET] 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
[4:50:21 PM ET] profitability and when that could hit
[4:50:22 PM ET] and thank you
[4:50:26 PM ET] yes so i'll start on the first part of your question
[4:50:29 PM ET] in regard to new units in the us specifically you know we think it's gonna be you know
[4:50:30 PM ET] 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.
[4:50:30 PM ET] in that
[4:50:34 PM ET] call it hundred net new range or a little below there
[4:50:35 PM ET] 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
[4:50:35 PM ET] 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.
[4:50:38 PM ET] and that's really driven by the fact that we had to reset the pipeline
[4:50:40 PM ET] 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.
[4:50:41 PM ET] obviously we had to do some closures but what i'm really excited
[4:50:44 PM ET] about is how the pipeline is building for twenty eight
[4:50:47 PM ET] you know and i think we showed you guys our proto
[4:50:49 PM ET] at investor day i'm happy to say that that prototype is now
[4:50:50 PM ET] 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,
[4:50:52 PM ET] up and running in a couple markets and we're seeing great
[4:50:56 PM ET] response both in the cost to build and then the way that our teams are able to operate our
[4:50:59 PM ET] partners are providing great experiences for our customers so the feedback
[4:51:00 PM ET] 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.
[4:51:03 PM ET] on the new unit has been really positive obviously it's early days on the
[4:51:06 PM ET] they've all opened really well and then you know as you look out into fiscal year
[4:51:10 PM ET] twenty eight you know we wanna get back into building new units
[4:51:10 PM ET] 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.
[4:51:12 PM ET] you know north of three hundred or so in the us and
[4:51:15 PM ET] you know we believe that is what gets us going towards
[4:51:17 PM ET] that opportunity of five thousand or more in north america so
[4:51:20 PM ET] more throughput that ultimately drives the top and bottom line. Your next question comes from Chris O'Cull with Baird. Please go ahead.
[4:51:21 PM ET] lots of opportunity on the new unit side of things
[4:51:23 PM ET] it does take a little bit of time to reset the pipelines so the feedback
[4:51:27 PM ET] on the new unit has been really positive obviously it's early days on the performance but
[4:51:30 PM ET] 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.
[4:51:31 PM ET] they've all opened really well and then you know as you look out into fiscal year twenty eight you know we wanna
[4:51:35 PM ET] get back into building new units you know north of three hundred or so in the us
[4:51:35 PM ET] 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.
[4:51:35 PM ET] 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.
[4:51:38 PM ET] and you know we believe that is what gets us going towards
[4:51:40 PM ET] or throughput that ultimately drives the top and bottom line. Your next question comes from Chris O'Cull with Baird. Please go ahead.
[4:51:40 PM ET] 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.
[4:51:41 PM ET] that opportunity of five thousand or more in north america so
[4:51:45 PM ET] lots of opportunity on the new unit side of things
[4:51:45 PM ET] more throughput that ultimately drives the top and bottom line. Your next question comes from Chris O'Cull with Baird. Please go ahead.
[4:51:45 PM ET] 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.
[4:51:47 PM ET] you know it does take a little bit of time to reset the pipeline
[4:51:50 PM ET] but i believe we now have done all the hard work and now it's in the business of
[4:51:50 PM ET] the team for the progress it's making. So I had a follow-up question about the North American margin.
[4:51:50 PM ET] 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?
[4:51:53 PM ET] the pipeline and getting the units built on your question about drive through
[4:51:55 PM ET] 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.
[4:51:55 PM ET] 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?
[4:51:57 PM ET] you know we're just getting started in some of these ideas and you know
[4:52:00 PM ET] uneven? Thanks, Chris. So starting to Q4 2026's North American margin, as you just said,
[4:52:01 PM ET] it'll be exciting to see how these things test out once we
[4:52:04 PM ET] better understanding of the testing you know our goal is david that we'll improve throughput
[4:52:05 PM ET] 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
[4:52:05 PM ET] 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,
[4:52:08 PM ET] 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
[4:52:10 PM ET] 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
[4:52:12 PM ET] line so more to come it'd be premature to get
[4:52:15 PM ET] specific on this but you know the whole rationale behind it is to give a better customer experience
[4:52:19 PM ET] and also a better partner experience which then results in
[4:52:20 PM ET] more throughput that ultimately drives the top and bottom line
[4:52:20 PM ET] 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.
[4:52:24 PM ET] your next question comes from chris
[4:52:26 PM ET] o'cull with baird please go ahead with your question
[4:52:30 PM ET] 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.
[4:52:31 PM ET] yes good afternoon and congrats to the team for the progress it's making
[4:52:34 PM ET] so i had a follow-up question about the north american margin it'd be
[4:52:38 PM ET] premature to get specific on this but the
[4:52:40 PM ET] 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.
[4:52:40 PM ET] whole rationale behind it is to give a better customer experience
[4:52:43 PM ET] and also a better partner experience which then results in
[4:52:44 PM ET] more throughput that ultimately drives the top and bottom line
[4:52:48 PM ET] your next question comes from chris
[4:52:50 PM ET] 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.
[4:52:50 PM ET] o'cull with baird please go ahead with your question
[4:52:55 PM ET] yes good afternoon and congrats to the team for the progress it's making
[4:52:58 PM ET] so i had a follow-up question about the north american margin or throughput
[4:53:00 PM ET] 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,
[4:53:00 PM ET] that ultimately drives the top and bottom line
[4:53:00 PM ET] 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.
[4:53:04 PM ET] your next question comes from chris
[4:53:05 PM ET] 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.
[4:53:06 PM ET] o'cull with baird please go ahead with your question
[4:53:10 PM ET] 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.
[4:53:11 PM ET] yes good afternoon and congrats to the team for the progress it's making
[4:53:14 PM ET] so i had a follow-up question about the north american margin
[4:53:18 PM ET] the profit flow through was much better than we expected in the fourth quarter
[4:53:18 PM ET] beyond higher sales
[4:53:20 PM ET] 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.
[4:53:22 PM ET] what were the biggest drivers of the leverage
[4:53:24 PM ET] and then looking or throughput that ultimately drives the top and bottom line
[4:53:25 PM ET] 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.
[4:53:25 PM ET] 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
[4:53:28 PM ET] your next question comes from chris
[4:53:30 PM ET] 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
[4:53:30 PM ET] o'cull with baird please go ahead with your question
[4:53:34 PM ET] yes good afternoon and congrats to the team for the progress it's making
[4:53:38 PM ET] so i had a follow-up question about the north american margin
[4:53:40 PM ET] 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.
[4:53:42 PM ET] the profit flow through was much better than we expected in the fourth quarter
[4:53:42 PM ET] beyond higher sales
[4:53:46 PM ET] what were the biggest drivers of the leverage then look at
[4:53:50 PM ET] 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?
[4:53:51 PM ET] yeah good afternoon and congrats to the team for the progress it's making
[4:53:54 PM ET] so i had a follow-up question about the north american margin
[4:53:58 PM ET] the profit flow through was much better than we expected in the fourth quarter
[4:53:58 PM ET] beyond higher sales
[4:54:00 PM ET] 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.
[4:54:02 PM ET] what were the biggest drivers of the leverage and then looking ahead
[4:54:05 PM ET] 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.
[4:54:05 PM ET] 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.
[4:54:06 PM ET] what does guidance assume for the north american international operating margins
[4:54:10 PM ET] next year and are there any unusual items that could make the quarterly
[4:54:10 PM ET] 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?
[4:54:10 PM ET] 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.
[4:54:13 PM ET] progression uneven the profit flow through is much better than we
[4:54:15 PM ET] 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.
[4:54:16 PM ET] expected in the fourth quarter beyond higher sales
[4:54:18 PM ET] what were the biggest drivers of the leverage and then looking ahead
[4:54:20 PM ET] 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
[4:54:22 PM ET] what does guidance assume for the north american international operating margins
[4:54:25 PM ET] 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.
[4:54:25 PM ET] 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
[4:54:26 PM ET] next year and are there any unusual items that could make the quarterly progression uneven
[4:54:29 PM ET] thanks chris so
[4:54:30 PM ET] 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?
[4:54:40 PM ET] 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.
[4:54:50 PM ET] 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.
[4:54:55 PM ET] 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.
[4:54:55 PM ET] 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.
[4:54:58 PM ET] starting to q four twenty twenty six is
[4:54:58 PM ET] north america margin as you just said the profit flow
[4:54:58 PM ET] through is much better than we expected in the fourth quarter beyond higher sales
[4:54:58 PM ET] what were the biggest drivers of the leverage
[4:54:58 PM ET] and then looking ahead what does guidance assume for the north america and international
[4:54:58 PM ET] operating margins next year and are there any unusual items that could make the quarterly
[4:54:58 PM ET] progression uneven
[4:54:58 PM ET] thanks chris so
[4:54:58 PM ET] starting to q four twenty twenty six is
[4:55:00 PM ET] 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.
[4:55:10 PM ET] 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.
[4:55:20 PM ET] 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.
[4:55:30 PM ET] 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.
[4:55:35 PM ET] 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.
[4:55:35 PM ET] 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.
[4:55:36 PM ET] progress both there in attacks and attach and mix we'll see some
[4:55:39 PM ET] price continue to come through it'll be below cpi and then the remainder of that comp
[4:55:40 PM ET] 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.
[4:55:42 PM ET] growth will be in transactions in us and that was about half
[4:55:46 PM ET] pricing delivery and about half attach and mix
[4:55:49 PM ET] as we move into f y twenty seven we're gonna wait a little bit more towards
[4:55:50 PM ET] 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.
[4:55:53 PM ET] ticket than transaction as we continue to see the strength of
[4:55:56 PM ET] all the work the team's doing in attach and mix
[4:55:58 PM ET] we continue to see really good progress both there in attacks and attach
[4:56:00 PM ET] 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
[4:56:02 PM ET] and mix we'll see some price continue to come through it'll be below cpi
[4:56:05 PM ET] 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.
[4:56:05 PM ET] 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
[4:56:06 PM ET] and then the remainder of that comp growth will be in transactions
[4:56:07 PM ET] continue to be led by our great operations
[4:56:10 PM ET] 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.
[4:56:11 PM ET] yeah the the only thing i would add to that is the thing that
[4:56:15 PM ET] gives us a lot of confidence in kind of pushing the guidance
[4:56:17 PM ET] up in twenty seven versus just a long term guidance of three or better
[4:56:20 PM ET] 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.
[4:56:20 PM ET] is the fact that we continue to have really good strength in transactions
[4:56:23 PM ET] you know so that's the foundational elements that are driving the business
[4:56:27 PM ET] and i think we've made great progress in food attach and mix as kathy mentions
[4:56:30 PM ET] 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.
[4:56:30 PM ET] you know on your question around new units you know the way i
[4:56:30 PM ET] 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.
[4:56:31 PM ET] continue to be led by our great operations
[4:56:35 PM ET] 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.
[4:56:35 PM ET] yeah the the only thing i would add to that is the thing that
[4:56:39 PM ET] gives us a lot of confidence in kind of pushing the guidance
[4:56:40 PM ET] 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.
[4:56:41 PM ET] up in twenty seven versus just a long term guidance of three or better
[4:56:44 PM ET] is the fact that we continue to have really good strength in transactions
[4:56:47 PM ET] you know so that's the foundational elements that are driving the business
[4:56:50 PM ET] 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.
[4:56:51 PM ET] then i think we've made great progress in food attach and mix as kathy mentions
[4:56:54 PM ET] you know on your question around new units you know the way i would describe it is we've got
[4:56:58 PM ET] clear line of sight on the five thousand you know obviously
[4:56:58 PM ET] as we get closer down the road
[4:57:00 PM ET] 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.
[4:57:00 PM ET] 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.
[4:57:02 PM ET] i'm guessing there's gonna be more upside to that number but for now you know we've
[4:57:04 PM ET] as we've done all the market planning we feel really good about
[4:57:05 PM ET] 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.
[4:57:07 PM ET] you know saying what we see line of sight on the five thousand additional units
[4:57:10 PM ET] 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.
[4:57:11 PM ET] we'll describe it as we've got clear line of sight on the
[4:57:14 PM ET] five thousand you know obviously as we get closer down the road
[4:57:18 PM ET] guessing there's gonna be more upside to that number but for now you know we've
[4:57:20 PM ET] as we've done all the market planning we feel really good about
[4:57:20 PM ET] 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.
[4:57:23 PM ET] you know saying what we see line of sight on the five thousand additional units
[4:57:27 PM ET] your next question comes from andrew charles
[4:57:28 PM ET] with td cowen please state your question
[4:57:30 PM ET] 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.
[4:57:32 PM ET] great thank you very much just one quick clarification and then a
[4:57:33 PM ET] question
[4:57:36 PM ET] your next question comes from andrew charles with td cowen please state your question
[4:57:40 PM ET] 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
[4:57:40 PM ET] great thank you very much just one
[4:57:43 PM ET] quick clarification and then a question curious what drove the expectation that
[4:57:46 PM ET] 1q north america same store sales to run pretty consistent with
[4:57:48 PM ET] 2q to 4q given that there's an easier comp in the first quarter
[4:57:50 PM ET] absolute transaction volume per quarter. It's actually far more consistent throughout the year. And so that's what gives us the guidance.
[4:57:52 PM ET] and my real question is brian the proxy calls out a successful new platform launch in the u s
[4:57:53 PM ET] by the end of the fiscal year
[4:57:57 PM ET] i'm curious the priorities laid out what fits this criteria you've spoken in past curious what
[4:58:00 PM ET] 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.
[4:58:01 PM ET] drove the expectation that 1q north america same store sales to run pretty
[4:58:04 PM ET] consistent with q2 to 4q given that there's an easier comp in the first quarter
[4:58:08 PM ET] my real question is brian the proxy calls out a successful new platform
[4:58:09 PM ET] launch in the u s by the end of the fiscal year
[4:58:10 PM ET] 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.
[4:58:13 PM ET] i'm curious of the priorities laid out what fits this criteria you've spoken in the past about
[4:58:17 PM ET] one in the morning of the afternoon is a bigger focus so
[4:58:19 PM ET] perhaps the revamped afternoon food platform is going to satisfy that criteria but
[4:58:20 PM ET] 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.
[4:58:20 PM ET] curious if could expand just more on your thoughts
[4:58:24 PM ET] about how you have one in the morning and the afternoon could be your focus so
[4:58:25 PM ET] 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.
[4:58:25 PM ET] 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.
[4:58:27 PM ET] perhaps the revamped afternoon food platform is going to satisfy that criteria but
[4:58:28 PM ET] curious if you could expand just more on your thoughts
[4:58:30 PM ET] 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.
[4:58:32 PM ET] so i'll start andrew on the the
[4:58:36 PM ET] cadence of our comp guidance throughout the course of the year
[4:58:38 PM ET] yes q one is the easiest lap if you just look at last year but if you look at absolute
[4:58:40 PM ET] 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.
[4:58:42 PM ET] transactions we were actually fairly consistent through the year
[4:58:45 PM ET] one thing the team's done a lot of work on is trying to take some of the seasonality out of our business
[4:58:49 PM ET] and so we have a strong product lineup that happens the cadence of it
[4:58:50 PM ET] ideas. And those working together are doing a nice job of driving transaction and sales. Thank you. And your next question comes from John.
[4:58:52 PM ET] is less you know in the past we used to have i think a little bit more very distinct
[4:58:56 PM ET] seasons we've been trying to make sure that we smooth that out
[4:58:58 PM ET] you saw it a little bit last year you'll see it a little bit more this year
[4:59:00 PM ET] John Ivanco with JPMorgan Chase and Company. Please state your question.
[4:59:01 PM ET] but they worked really hard at pulling seasonality
[4:59:03 PM ET] and then the other thing is i just look at the absolute transaction volume
[4:59:06 PM ET] per quarter it's actually far more consistent throughout the the year
[4:59:10 PM ET] and so that's what gives us the the guidance that we did which is
[4:59:10 PM ET] deliveries. And those working together are doing a nice job of driving transaction and sales. Thank you, and your next question comes from John.
[4:59:10 PM ET] 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?
[4:59:12 PM ET] fairly consistent through the year obviously there'll be a little bit of variation
[4:59:15 PM ET] 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?
[4:59:16 PM ET] yeah and then to your question of platforms you know so like protein would be an example of
[4:59:20 PM ET] 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?
[4:59:20 PM ET] a platform obviously the energy refreshers is an example of a platform
[4:59:22 PM ET] and then some of the work that we've done
[4:59:26 PM ET] in on the food front you'll be seeing some platforms roll out on the
[4:59:30 PM ET] food side of things around our leveraging our bites business
[4:59:30 PM ET] 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.
[4:59:33 PM ET] moving that from just a morning idea to also an afternoon idea
[4:59:36 PM ET] that we did which is fairly consistent through the year obviously there'll be a little bit of variation
[4:59:40 PM ET] 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.
[4:59:40 PM ET] yeah and then to your question of platforms you know so like
[4:59:43 PM ET] protein would be an example of a platform obviously the energy refreshers
[4:59:46 PM ET] is an example of the platform and then some of the work that we've done
[4:59:50 PM ET] 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.
[4:59:50 PM ET] in on the food front you'll be seeing some platforms roll out on the
[4:59:54 PM ET] food side of things around our leveraging our bites business
[4:59:57 PM ET] moving that from just a morning idea to also an afternoon idea
[5:00:00 PM ET] 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.
[5:00:00 PM ET] and then there's still opportunities on health and wellness to go beyond just protein
[5:00:04 PM ET] so we feel really good about the initiatives we've got coming down the pike on
[5:00:07 PM ET] call it platforms and then also the platforms that we've already gotten out the door so
[5:00:10 PM ET] 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.
[5:00:11 PM ET] you know you'll continue to see us have both
[5:00:14 PM ET] i would call like lto ideas and then also platform ideas
[5:00:17 PM ET] and you know those working together are doing a nice job of driving transaction and sales
[5:00:20 PM ET] 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.
[5:00:21 PM ET] thank you ann your next question comes from
[5:00:24 PM ET] john ivankoe with jpmorgan chase and company please state your question
[5:00:28 PM ET] hi thank you i wanted to talk about the implications of
[5:00:30 PM ET] 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.
[5:00:31 PM ET] seven day a week deliveries and
[5:00:33 PM ET] those working together are doing a nice job of driving transaction and sales
[5:00:37 PM ET] thank you and your
[5:00:40 PM ET] next question comes from john ivankoe with jpmorgan chase and company
[5:00:40 PM ET] 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
[5:00:40 PM ET] please state your question
[5:00:44 PM ET] hi thank you i wanted to talk about the implications of
[5:00:47 PM ET] seven day a week delivery which i think is also going to have
[5:00:50 PM ET] 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.
[5:00:51 PM ET] twenty four hour fulfillment if it doesn't already
[5:00:53 PM ET] so brian or cindy can you talk about the implication
[5:00:57 PM ET] which i think is also going to have twenty four hour fulfillment
[5:01:00 PM ET] Your next question comes from Lauren Silberman with Deutsche Bank. Please state your question. Hey, thanks for the question.
[5:01:00 PM ET] if it doesn't already so brian or cindy can you talk
[5:01:04 PM ET] about the implications specifically in the afternoon but also the morning
[5:01:07 PM ET] and what that might mean for beverages
[5:01:10 PM ET] what might that mean for food what that might mean to the grab and go case
[5:01:10 PM ET] 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?
[5:01:13 PM ET] in other words how big of an unlock might we be just on the cusp of
[5:01:15 PM ET] 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.
[5:01:15 PM ET] 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?
[5:01:17 PM ET] relative to the legacy starbucks distribution platform into the stores back end
[5:01:17 PM ET] thank you
[5:01:20 PM ET] savings, anything else that we don't necessarily see? And then can we interpret this as potential upside to fiscal 28 targets? Thank you.
[5:01:21 PM ET] yeah look it's a great question and you know
[5:01:24 PM ET] we do believe supply chain is gonna be a nice advantage for us once we get
[5:01:28 PM ET] the replenishment schedule there we're getting closer on the
[5:01:30 PM ET] 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?
[5:01:30 PM ET] 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.
[5:01:31 PM ET] daily deliveries and we're going to continue to improve on the replenishment schedule
[5:01:33 PM ET] but yeah it helps in exactly those areas that you talked about we'll
[5:01:35 PM ET] 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.
[5:01:37 PM ET] of we have this mantra we wanna have the right product at the right place
[5:01:40 PM ET] savings, anything else that we don't necessarily see. And then, can we interpret this as potential upside to fiscal 28 targets? Thank you.
[5:01:40 PM ET] 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.
[5:01:40 PM ET] at the right time and what this allows us to do
[5:01:41 PM ET] is just that you know
[5:01:45 PM ET] 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.
[5:01:45 PM ET] each of our coffee houses behave differently on
[5:01:48 PM ET] know various elements of the business whether it's food or beverage that's in the
[5:01:50 PM ET] 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.
[5:01:50 PM ET] 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.
[5:01:52 PM ET] cold case that you can grab and go whether it's the food platform that you know we heat up
[5:01:54 PM ET] for people and give you you know that fresh food experience
[5:01:55 PM ET] 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.
[5:01:56 PM ET] the beverages that we make kind of
[5:02:00 PM ET] 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.
[5:02:00 PM ET] by craft for everybody and to have the ability to get the daily deliveries
[5:02:03 PM ET] within a signal for the replenishment within twenty four hours
[5:02:07 PM ET] is gonna be a big advantage for us to make sure that we keep all of those things in stock
[5:02:10 PM ET] 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.
[5:02:10 PM ET] at the right cadence for our customers and our partners to serve it so
[5:02:14 PM ET] we believe there's still a lot of upside to be had there and you know
[5:02:17 PM ET] team's making great progress we've made a lot of progress early on the daily deliveries
[5:02:20 PM ET] 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.
[5:02:20 PM ET] 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.
[5:02:20 PM ET] we're gonna be getting to the replenishment here in the next you know call it six to twelve months
[5:02:20 PM ET] 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.
[5:02:24 PM ET] your next question comes from
[5:02:25 PM ET] 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.
[5:02:26 PM ET] lauren silberman with deutsche bank please state your question
[5:02:30 PM ET] headed. And your next question comes from Sharon Zacvia with William Blair. Please state your question. Hi, thanks. I'm curious.
[5:02:31 PM ET] hey thanks for the question and congrats so you guys have mentioned a couple of times that you're running ahead
[5:02:35 PM ET] schedule i know approaching the low end of the fiscal twenty twenty eight guide
[5:02:38 PM ET] what elements have been faster is it like sales margins cost team's making great progress
[5:02:40 PM ET] 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.
[5:02:40 PM ET] 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,
[5:02:42 PM ET] we've made a lot of progress already on the daily deliveries
[5:02:44 PM ET] and we're gonna be getting to the replenishment here in the next you know call it six to twelve months
[5:02:45 PM ET] 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.
[5:02:45 PM ET] 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,
[5:02:48 PM ET] your next question comes from
[5:02:50 PM ET] 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.
[5:02:50 PM ET] copying negatively. Is that typically related to scorecard deficiencies and things you can do operationally, or are there more idiosyncratic issues?
[5:02:50 PM ET] lauren silberman with deutsche bank please state your question
[5:02:55 PM ET] hey thanks for the question and congrats so you guys have mentioned a couple of times that you're running ahead of
[5:02:59 PM ET] schedule i know approaching the low end of the fiscal twenty twenty eight guide
[5:03:00 PM ET] 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
[5:03:02 PM ET] what elements have been faster is it like sales margins
[5:03:04 PM ET] cost savings anything else that we necessarily see
[5:03:07 PM ET] can we interpret this as potential upside to fiscal twenty twenty eight targets
[5:03:07 PM ET] thank you
[5:03:10 PM ET] negatively. Is that typically related to scorecard deficiencies and things you can do operationally, or are there more idiosyncratic issues?
[5:03:10 PM ET] 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.
[5:03:12 PM ET] congrats so you guys have mentioned a couple of times that you're running ahead
[5:03:15 PM ET] 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.
[5:03:15 PM ET] of schedule i know approaching the low end of the fiscal twenty eight guide
[5:03:18 PM ET] what elements have been faster is it like sales margins cost savings
[5:03:20 PM ET] 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
[5:03:21 PM ET] anything else that we don't necessarily see and then can we interpret this as potential upside
[5:03:23 PM ET] to fiscal twenty twenty eight targets thank you
[5:03:27 PM ET] well you you know look the good news is you kinda listed off all the things that are
[5:03:30 PM ET] 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.
[5:03:31 PM ET] ahead of schedule you know sales margins and earnings so
[5:03:34 PM ET] you know that's why you know you see us you know look
[5:03:37 PM ET] the good news is you kinda listed off all the things that are ahead of schedule you know sales margins and
[5:03:40 PM ET] 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
[5:03:41 PM ET] earnings so you know that's why
[5:03:44 PM ET] you see us savings anything else that we don't necessarily see
[5:03:47 PM ET] and then can we interpret this as potential upside to fiscal twenty twenty eight targets
[5:03:47 PM ET] thank you
[5:03:50 PM ET] 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.
[5:03:51 PM ET] well you you know look the good news is you kinda listed off all
[5:03:54 PM ET] things that are ahead of schedule you know sales margins and earnings
[5:03:55 PM ET] 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.
[5:03:55 PM ET] 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,
[5:03:58 PM ET] so you know that's why you know you see us guiding already to the low
[5:04:00 PM ET] 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.
[5:04:01 PM ET] side of fiscal year twenty eight and look the the other thing i'd tell you is
[5:04:05 PM ET] the guidance for fiscal year twenty eight i think we said this at investor day
[5:04:07 PM ET] it's just a point in time guiding already to the low side of
[5:04:10 PM ET] 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.
[5:04:10 PM ET] fiscal year twenty eight and look the the other thing i'd tell you is
[5:04:13 PM ET] the guidance for fiscal year twenty eight i think we said this at investor day
[5:04:15 PM ET] 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
[5:04:19 PM ET] you know sales margins and earnings so
[5:04:20 PM ET] 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
[5:04:23 PM ET] that's why you see us guiding already to the low side of
[5:04:26 PM ET] fiscal year twenty eight and look at the the other thing i'd tell you is
[5:04:29 PM ET] the guidance for fiscal year twenty eight i think we said this at investor day
[5:04:30 PM ET] 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.
[5:04:32 PM ET] it's just a point in time on our journey like we have no expectations that that's an endpoint
[5:04:35 PM ET] so you know our goal is obviously
[5:04:38 PM ET] to always continue to figure how we grow the business smart time on our journey
[5:04:40 PM ET] 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
[5:04:41 PM ET] like we have no expectations that that's an endpoint so
[5:04:44 PM ET] you know our goal is obviously to always continue to figure out how we grow the business
[5:04:48 PM ET] smartly and that's exactly what's happening and we're doing it the right way
[5:04:50 PM ET] Aiken Phillips with Melius Research. Please state your question. Hey, good afternoon, everybody. So, with CapEx at approximately 5% in sales next year,
[5:04:51 PM ET] through the fundamentals of operations and then obviously surrounding it with i think the right
[5:04:54 PM ET] innovation whether it's digital menu
[5:04:58 PM ET] then obviously i think the creative solutions we're going to have in the asset too so
[5:05:00 PM ET] 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?
[5:05:01 PM ET] you know i think we're hitting on all cylinders lee
[5:05:05 PM ET] and that's exactly what's happening and we're doing it the right way through the fundamentals of operations
[5:05:08 PM ET] and then obviously surrounding it with i think the right innovation whether it's digital
[5:05:10 PM ET] menu
[5:05:10 PM ET] 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.
[5:05:14 PM ET] then obviously i think the creative solutions we're going to have in the asset too so
[5:05:18 PM ET] you know i think we're hitting on all cylinders
[5:05:20 PM ET] 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.
[5:05:20 PM ET] and that's why you heard me say really back to starbucks as a strategy as
[5:05:23 PM ET] switch gears from a turnaround plan to a growth plan
[5:05:26 PM ET] and you know i couldn't be more optimistic about where we're headed
[5:05:28 PM ET] and that's why you heard me say really back to starbucks as a strategy to switch gears
[5:05:30 PM ET] 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,
[5:05:32 PM ET] from a turnaround plan to a growth plan and
[5:05:33 PM ET] know i couldn't be more optimistic about where we're headed
[5:05:37 PM ET] and your next question comes from
[5:05:40 PM ET] 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,
[5:05:40 PM ET] sharon zackfia with william blair please state your question hi thanks
[5:05:44 PM ET] i'm curious and that's why you heard me say really back to
[5:05:46 PM ET] starbucks as a strategy to switch gears from a turnaround plan to a growth plan
[5:05:49 PM ET] and you know i couldn't be more optimistic about where we're headed
[5:05:50 PM ET] though, into the following year, we still believe we should be in that 5% of revenue range, plus or minus, and will continue to.
[5:05:53 PM ET] and your next question comes from
[5:05:56 PM ET] sharon zackfia with william blair please state your question
[5:05:59 PM ET] hi thanks i'm curious whether you're seeing a continued correlation
[5:06:00 PM ET] 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.
[5:06:00 PM ET] between the scorecard and individual
[5:06:04 PM ET] unit comp performance and if you look at those
[5:06:07 PM ET] small percentage of locations that are comping and that's why you heard me say really back to
[5:06:10 PM ET] 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.
[5:06:10 PM ET] starbucks as a strategy to switch gears from a turnaround plan to a growth plan
[5:06:13 PM ET] and you know i couldn't be more optimistic about where we're headed
[5:06:17 PM ET] and your next question comes from
[5:06:20 PM ET] 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.
[5:06:20 PM ET] sharon zackfia with william blair please state your question
[5:06:20 PM ET] 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.
[5:06:23 PM ET] hi thanks i'm curious whether you're seeing a continued
[5:06:24 PM ET] correlation between the scorecard and individual
[5:06:25 PM ET] Massive amounts. Traditionally, our biggest capital goes into the support of our coffee houses. Your next question.
[5:06:28 PM ET] unit comp performance and if you look at those
[5:06:30 PM ET] 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.
[5:06:30 PM ET] 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
[5:06:31 PM ET] small percentage of locations that are comping whether you're seeing a continued correlation
[5:06:32 PM ET] between the scorecard and individual
[5:06:35 PM ET] 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.
[5:06:35 PM ET] 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
[5:06:36 PM ET] unit comp performance and if you look at those
[5:06:39 PM ET] small percentage of locations that are comping negatively
[5:06:40 PM ET] 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
[5:06:40 PM ET] 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.
[5:06:41 PM ET] is that typically related to scorecard deficiencies and things you can do operationally
[5:06:43 PM ET] or are there more idiosyncratic issues
[5:06:47 PM ET] so yeah the good news is the gross scorecard continues to be a great
[5:06:50 PM ET] 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.
[5:06:51 PM ET] of performance and i will tell you the stores
[5:06:55 PM ET] that we're not comping negatively
[5:06:57 PM ET] is that typically related to scorecard deficiencies and things you can do operationally
[5:06:59 PM ET] or are there more idiosyncratic issues
[5:07:00 PM ET] 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
[5:07:03 PM ET] so yeah the good news is the gross scorecard continues to be a great
[5:07:07 PM ET] of performance and
[5:07:10 PM ET] 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.
[5:07:10 PM ET] will tell you the stores that we're not comping there are some media
[5:07:10 PM ET] 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.
[5:07:10 PM ET] idiosyncratic issues like
[5:07:13 PM ET] the road is under construction or
[5:07:15 PM ET] 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.
[5:07:17 PM ET] you know we might have been moving delivery around to make sure we allocate delivery there are some media
[5:07:18 PM ET] idiosyncratic issues you know like
[5:07:20 PM ET] 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.
[5:07:30 PM ET] 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.
[5:07:40 PM ET] 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,
[5:07:50 PM ET] 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.
[5:07:50 PM ET] 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.
[5:07:55 PM ET] 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.
[5:07:55 PM ET] 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.
[5:07:57 PM ET] get going and be able to do more than two thousand in this coming fiscal year
[5:08:00 PM ET] 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.
[5:08:00 PM ET] 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.
[5:08:01 PM ET] and so the feedback and i don't if you've had the opportunity to go into
[5:08:04 PM ET] of our coffee houses that have gone through an uplift but the feedback both from our
[5:08:05 PM ET] partners and our customers is
[5:08:09 PM ET] this feels like starbucks again like thank you for bringing back my third place
[5:08:10 PM ET] 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.
[5:08:13 PM ET] and so it does a lot for i think the brand
[5:08:16 PM ET] and then obviously we love what we're seeing from the
[5:08:18 PM ET] on transactions and then obviously the total sales result so it does a lot
[5:08:20 PM ET] 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.
[5:08:22 PM ET] for i think the brand and then obviously we love what we're seeing from
[5:08:25 PM ET] 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.
[5:08:25 PM ET] 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.
[5:08:26 PM ET] the impact on transactions and then obviously the total sales results so
[5:08:30 PM ET] that by all accounts is a is a winner for us and we're gonna keep driving that really hard
[5:08:30 PM ET] 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.
[5:08:33 PM ET] to your question on international the thing i would tell you is you know we had another
[5:08:35 PM ET] 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,
[5:08:35 PM ET] 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.
[5:08:37 PM ET] great year international you know i think this is now seven consecutive quarters of comp growth
[5:08:40 PM ET] 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.
[5:08:41 PM ET] if you exclude china our revenue was up five percent so
[5:08:45 PM ET] really the team did a tremendous job around the world
[5:08:47 PM ET] and i'm really excited about the growth opportunities that are in front of us
[5:08:50 PM ET] 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.
[5:08:51 PM ET] specifically to japan i gotta give the japan team a lot of so
[5:08:54 PM ET] that by all accounts is a is a winner for us and we're gonna keep driving that really hard
[5:08:57 PM ET] to your question on international the thing i would tell you is
[5:09:00 PM ET] 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.
[5:09:00 PM ET] 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.
[5:09:00 PM ET] you know we had another great year international you know
[5:09:03 PM ET] i think this is now seven consecutive quarters of comp growth
[5:09:05 PM ET] Thank you. And your next question comes from Peter Salah with BTIG. Please state your question. Uh great, thanks for taking the question.
[5:09:05 PM ET] if you exclude china our revenue was up five percent
[5:09:08 PM ET] so really the team did a tremendous job around the world
[5:09:10 PM ET] 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.
[5:09:11 PM ET] and i'm really excited about the growth opportunities that are in front of
[5:09:15 PM ET] specifically to japan i gotta give the japan team a lot of credit they had another terrific year
[5:09:18 PM ET] and it's a really great business and i think we've said this consistently you know
[5:09:20 PM ET] 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,
[5:09:22 PM ET] we always evaluate what is the right ownership strategy every year
[5:09:25 PM ET] spend. Thank you. And your next question comes from Peter Salah with BTIG. Please state your question. Great. Thanks for taking the question.
[5:09:25 PM ET] 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,
[5:09:26 PM ET] international you know i think this is now seven consecutive quarters of comp growth
[5:09:29 PM ET] if you exclude china our revenue was up five percent so
[5:09:30 PM ET] 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.
[5:09:33 PM ET] really the team did a tremendous job around the world
[5:09:35 PM ET] and i'm really excited about the growth opportunities that are in front of
[5:09:39 PM ET] specifically to japan i gotta give the japan team a lot of credit they had another terrific year
[5:09:40 PM ET] 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.
[5:09:42 PM ET] and it's a really great business and i think we've said this consistently you know
[5:09:46 PM ET] we always evaluate what is the right ownership strategy and when
[5:09:49 PM ET] if and when the time comes where that should change you know we'll share that with you but
[5:09:50 PM ET] 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.
[5:09:52 PM ET] i'm really proud of the way that the team delivered
[5:09:54 PM ET] and i'm really proud of how our international business is performing
[5:09:58 PM ET] and you know i'm really confident for the new unit growth that we've got coming down
[5:10:00 PM ET] for this fiscal year and into the out years
[5:10:00 PM ET] 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.
[5:10:04 PM ET] when if and when the time comes where that should change
[5:10:07 PM ET] you know we'll share that with you but i'm really proud of
[5:10:10 PM ET] the way that the team delivered and i'm really proud of how our international business is performing
[5:10:10 PM ET] 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.
[5:10:14 PM ET] and you know i'm really confident for the new unit growth that we've got coming down
[5:10:16 PM ET] for this fiscal year and into the out years
[5:10:20 PM ET] thank you and your next question comes from
[5:10:20 PM ET] 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.
[5:10:23 PM ET] peter saleh with btig please state your question
[5:10:25 PM ET] great thanks for taking the question
[5:10:29 PM ET] thank you and your next question comes from peter saleh with
[5:10:30 PM ET] 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.
[5:10:31 PM ET] btig please state your question
[5:10:35 PM ET] great thanks for taking the question and congrats on
[5:10:35 PM ET] the performance
[5:10:39 PM ET] i wanted to ask about the rewards program you've had a couple of quarters now
[5:10:40 PM ET] 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.
[5:10:43 PM ET] under your belt with the change in the rewards program i know you mentioned thirty six million
[5:10:45 PM ET] 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.
[5:10:45 PM ET] 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.
[5:10:46 PM ET] active users but can you give us a little bit more sense on
[5:10:49 PM ET] how that they're performing in terms of frequency spend
[5:10:50 PM ET] 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.
[5:10:53 PM ET] thank you and your next question comes from
[5:10:55 PM ET] peter saleh with btig please state your question
[5:10:59 PM ET] great thanks for taking the question and congrats on the
[5:11:00 PM ET] performance
[5:11:00 PM ET] 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
[5:11:04 PM ET] i wanted to ask about the rewards program you've had a couple of quarters now
[5:11:05 PM ET] 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.
[5:11:05 PM ET] 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?
[5:11:08 PM ET] under your belt with the change in the rewards program i know you mentioned thirty six million dollars active
[5:11:10 PM ET] 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.
[5:11:10 PM ET] users but can you give us a little bit more sense on
[5:11:14 PM ET] how that they're performing in terms of frequency spend
[5:11:15 PM ET] 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.
[5:11:15 PM ET] 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.
[5:11:15 PM ET] any more detail you can provide there would be great
[5:11:16 PM ET] thanks
[5:11:20 PM ET] yeah look that is a one of those
[5:11:20 PM ET] 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.
[5:11:22 PM ET] initiatives that continues to i think meet and exceed our expectations
[5:11:26 PM ET] the way we've done the new
[5:11:29 PM ET] tiering you know with green gold and reserve we're continuing to see
[5:11:30 PM ET] 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.
[5:11:32 PM ET] people move up from green to gold and gold to reserve
[5:11:35 PM ET] and that's really driven by first and foremost frequency
[5:11:37 PM ET] you know and then i think as we get better
[5:11:40 PM ET] 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.
[5:11:40 PM ET] with our personalization we're also gonna see ticket continue to
[5:11:44 PM ET] have an impact but the early days the first big moves were
[5:11:47 PM ET] seeing on our in the frequency world so not surprising you know a lot of the new users
[5:11:50 PM ET] 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.
[5:11:51 PM ET] first come into green start out at a lower frequency level then as
[5:11:54 PM ET] they spend more time in the program we see their frequency levels increase
[5:11:55 PM ET] 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
[5:11:55 PM ET] 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.
[5:11:56 PM ET] and then we see people moving up from you know green to gold and obviously gold to reserve so
[5:11:58 PM ET] you know the program is working exactly the way
[5:12:00 PM ET] 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.
[5:12:02 PM ET] would hope customers are giving us feedback that they're enjoying the program
[5:12:06 PM ET] they love being able to redeem the stars at sixty
[5:12:09 PM ET] sixty stars for the two dollar offer and
[5:12:10 PM ET] 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.
[5:12:10 PM ET] 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.
[5:12:10 PM ET] 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
[5:12:12 PM ET] know the team's doing a great job of figuring out how to nail take advantage of what is the next step
[5:12:15 PM ET] 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
[5:12:15 PM ET] in the evolution of that rewards program which is gonna be more around additional personalization
[5:12:20 PM ET] 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.
[5:12:20 PM ET] 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.
[5:12:21 PM ET] moving up from you know green to gold and obviously gold to reserve so
[5:12:22 PM ET] know the program is working exactly the way
[5:12:25 PM ET] 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
[5:12:25 PM ET] 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.
[5:12:26 PM ET] would hope customers are giving us feedback that they're enjoying the program
[5:12:30 PM ET] they love being able to redeem these stars at sixty
[5:12:30 PM ET] 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.
[5:12:30 PM ET] 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.
[5:12:33 PM ET] sixty stars for the two dollar offer and
[5:12:36 PM ET] know the team's doing a great job of figuring out how to take advantage of what is the next step
[5:12:39 PM ET] in the evolution of that rewards program which is gonna be more around
[5:12:39 PM ET] additional personalization
[5:12:40 PM ET] 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.
[5:12:45 PM ET] 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.
[5:12:45 PM ET] thank you and your next question comes from margaret may bienstok with
[5:12:45 PM ET] 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.
[5:12:46 PM ET] wolfe research please state your question
[5:12:49 PM ET] hi thank you for taking my question
[5:12:50 PM ET] 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
[5:12:53 PM ET] brian i know you've talked about creating a second peak in the app
[5:12:56 PM ET] afternoon as a priority for fiscal twenty twenty seven can you talk a little bit about
[5:12:59 PM ET] where the afternoon stands today perhaps versus a year figuring out how to take advantage of what is the next
[5:13:00 PM ET] 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.
[5:13:00 PM ET] 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.
[5:13:02 PM ET] step in the evolution of that rewards program which is gonna be more around
[5:13:03 PM ET] additional personalization
[5:13:05 PM ET] 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.
[5:13:09 PM ET] thank you and your next question comes from margaret may bienstok with
[5:13:10 PM ET] 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,
[5:13:12 PM ET] wolfe research please state your question
[5:13:16 PM ET] hi thank you for taking my question brian i know you've talked about creating a
[5:13:19 PM ET] second peak in the afternoon as a priority for fiscal twenty twenty seven
[5:13:20 PM ET] 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
[5:13:22 PM ET] can you talk a little bit about where the afternoon stands today perhaps versus a year ago
[5:13:24 PM ET] what you see the biggest drivers are
[5:13:28 PM ET] from here on the afternoon and any update on how energy refreshers have trended since you
[5:13:28 PM ET] launched thank you
[5:13:29 PM ET] yeah
[5:13:30 PM ET] 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.
[5:13:33 PM ET] thank you and your next question comes from margaret may bienstok with
[5:13:34 PM ET] wolfe research please state your question
[5:13:40 PM ET] hi thank you for taking my question brian i know you've talked about creating an
[5:13:40 PM ET] or iced Americanos continues to see a really nice impact in the afternoon. Thank you.
[5:13:43 PM ET] second peak in the afternoon as a priority for fiscal twenty twenty seven
[5:13:46 PM ET] can you talk a little bit about where the afternoon stands today perhaps versus a year ago
[5:13:48 PM ET] what you see the biggest drivers are
[5:13:50 PM ET] last question comes from Brian Bittner with Oppenheimer and Company. Please state your question. Thanks. Thanks for sneaking me in.
[5:13:52 PM ET] from here on the afternoon and any update on how energy refreshers have trended since you launched
[5:13:52 PM ET] thank you
[5:13:56 PM ET] yeah thanks for the question you know this is something that i'm really excited about we're
[5:14:00 PM ET] 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
[5:14:00 PM ET] kind of in the early days of a lot of our efforts
[5:14:03 PM ET] one of things that's been really great is with the upgrades that we've made to our food
[5:14:06 PM ET] and our pastry case the biggest place where we've seen an increase of
[5:14:09 PM ET] attach has been in the afternoon in the pm you know so we've seen a nice little pickup
[5:14:10 PM ET] 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?
[5:14:11 PM ET] in afternoon attach
[5:14:12 PM ET] the refreshers program
[5:14:16 PM ET] the thing that's great is and we we still have more work to do on this but
[5:14:19 PM ET] energy has actually skewed more towards the morning
[5:14:20 PM ET] 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?
[5:14:22 PM ET] but the fact now that you can get caffeine free refreshers
[5:14:24 PM ET] is driving some nice growth in the afternoon and we've got some work coming down the
[5:14:28 PM ET] this fiscal year where you'll see us that we've made to our food and our pastry case
[5:14:30 PM ET] 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.
[5:14:31 PM ET] the biggest place where we've seen an increase of attach has been in the afternoon in the pm
[5:14:35 PM ET] you know so we've seen a nice little pickup in afternoon attach
[5:14:39 PM ET] the refreshers program the thing that's great is
[5:14:40 PM ET] 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
[5:14:42 PM ET] and we we still have more work to do on this but energy has actually
[5:14:45 PM ET] skewed more towards the morning but the fact now that you can get caffeine free refreshers
[5:14:48 PM ET] is driving some nice growth in the afternoon and we've got some work coming down the
[5:14:50 PM ET] 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.
[5:14:52 PM ET] this fiscal year where you'll see us now highlight for people
[5:14:54 PM ET] that there is a caffeine free refresher program
[5:14:58 PM ET] which i think you're going to see play really well in the afternoon
[5:15:00 PM ET] 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.
[5:15:01 PM ET] we also towards the morning but the fact now that you can get caffeine free refreshers
[5:15:04 PM ET] is driving some nice growth in the afternoon and we've got some work coming down the
[5:15:08 PM ET] this fiscal year where you'll see us now highlight for people that there is a a
[5:15:10 PM ET] 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,
[5:15:12 PM ET] caffeine free refresher program which i think you're gonna see play really well
[5:15:16 PM ET] in the afternoon we also have some work around a
[5:15:18 PM ET] tea platform where we're gonna put some health and wellness into our teas
[5:15:20 PM ET] 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,
[5:15:22 PM ET] which i'm really excited about and so we're making up some work
[5:15:25 PM ET] 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.
[5:15:25 PM ET] 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,
[5:15:26 PM ET] around a tea platform where we're gonna put some health and wellness
[5:15:28 PM ET] into our teas which i'm really excited about
[5:15:30 PM ET] 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.
[5:15:32 PM ET] and so we're making snoopy highlight for people
[5:15:34 PM ET] that there is a a caffeine free refresher program
[5:15:38 PM ET] which i think you're going to see play really well in the afternoon
[5:15:40 PM ET] 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.
[5:15:41 PM ET] we also have some work around a tea platform where we're gonna put some health and wellness
[5:15:44 PM ET] into our teas which i'm really excited about
[5:15:47 PM ET] and so we're making really great progress in the afternoon you know
[5:15:48 PM ET] tsds are up
[5:15:49 PM ET] versus year ago
[5:15:50 PM ET] 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.
[5:15:53 PM ET] think you heard me say this in our early remarks they're up all day in every day part
[5:15:55 PM ET] 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.
[5:15:55 PM ET] 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.
[5:15:57 PM ET] now highlight for people that there is a
[5:16:00 PM ET] a caffeine free refresher program which i think you're gonna see
[5:16:00 PM ET] 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
[5:16:03 PM ET] play really well in the afternoon we also have some work
[5:16:06 PM ET] around a tea platform where we're gonna put some health and wellness
[5:16:08 PM ET] into our teas which i'm really excited about
[5:16:10 PM ET] 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.
[5:16:11 PM ET] and so we're making really great progress in the afternoon you know ts
[5:16:12 PM ET] tsds are up
[5:16:13 PM ET] versus year ago
[5:16:17 PM ET] think you heard me say this in our early remarks they're up all day in every daypart
[5:16:20 PM ET] really great progress in the afternoon you know tsds are up
[5:16:20 PM ET] 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.
[5:16:21 PM ET] versus year ago
[5:16:25 PM ET] think you heard me say this in our early remarks they're up all day in every day part
[5:16:27 PM ET] but it's great to see that
[5:16:30 PM ET] 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.
[5:16:31 PM ET] morning is increasing the afternoon is increasing
[5:16:33 PM ET] and the initiatives that we've targeted to the afternoon are actually working the way we'd hoped they would work
[5:16:37 PM ET] maybe sorry maybe i'll just put a plug in as well for another
[5:16:40 PM ET] 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.
[5:16:41 PM ET] favorite in the afternoon is our matcha business and our matcha platform
[5:16:44 PM ET] our matcha business is really great progress in the afternoon you know tsds are up
[5:16:45 PM ET] versus year ago
[5:16:49 PM ET] think you heard me say this in our early remarks they're up all day in every day part
[5:16:50 PM ET] 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.
[5:16:51 PM ET] but it's great to see that
[5:16:55 PM ET] morning is increasing the afternoon is increasing
[5:16:57 PM ET] and the initiatives that we've targeted to the afternoon are actually working the way we'd hoped they would work
[5:17:00 PM ET] 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
[5:17:01 PM ET] maybe maybe i'll just put a plug in as well for another
[5:17:05 PM ET] favorite in the afternoon is our matcha business and our matcha platform
[5:17:08 PM ET] our matcha business is now over a billion dollar platform and it's growing
[5:17:10 PM ET] 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.
[5:17:10 PM ET] 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,
[5:17:12 PM ET] tremendously year over year it's which started as probably just a more simple matcha
[5:17:15 PM ET] 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.
[5:17:15 PM ET] 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,
[5:17:15 PM ET] beverage we now almost maybe maybe i'll just
[5:17:17 PM ET] put a plug in as well for another
[5:17:20 PM ET] 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.
[5:17:20 PM ET] 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.
[5:17:21 PM ET] favorite in the afternoon is our matcha business and our matcha platform
[5:17:24 PM ET] our matcha business is now over a billion dollar platform and it's growing
[5:17:28 PM ET] tremendously year over year it's which started as probably just a more simple matcha
[5:17:30 PM ET] 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.
[5:17:31 PM ET] beverage we now almost everyone puts a cold foam on it
[5:17:34 PM ET] and it is sought after more often in the afternoon so
[5:17:38 PM ET] that's also been a great addition as we continue to evolve
[5:17:40 PM ET] We've got a clear strategy. Really proud of our teams in every single coffee house. I think the Seattle Support Center is.
[5:17:40 PM ET] 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.
[5:17:41 PM ET] the matcha everyone puts a cold foam on it and it is
[5:17:44 PM ET] sought after more often in the afternoon so that's also been a great addition in
[5:17:45 PM ET] 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.
[5:17:46 PM ET] we continue to evolve the matcha business
[5:17:50 PM ET] yeah actually as as you mentioned the other thing to think about too for the afternoon that's been great is
[5:17:50 PM ET] 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.
[5:17:53 PM ET] our cold beverage innovation has really connected
[5:17:56 PM ET] and kinda to kathy's point those cold beverages a lot of them have cold foam
[5:17:59 PM ET] so you know as we talk about the mix that we're seeing
[5:18:00 PM ET] 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.
[5:18:01 PM ET] the combination of customers moving to cold
[5:18:05 PM ET] also results in usually a little bit bigger size and then the idea of modifying with
[5:18:09 PM ET] cold foam whether it's matcha cold brew know iced coffee
[5:18:10 PM ET] 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.
[5:18:12 PM ET] or iced americanos continues to see a really nice
[5:18:14 PM ET] nice impact in the afternoon
[5:18:18 PM ET] thank you and the last question
[5:18:20 PM ET] 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.
[5:18:22 PM ET] comes from brian bittner with oppenheimer and company
[5:18:22 PM ET] please state your question
[5:18:25 PM ET] 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
[5:18:25 PM ET] 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.
[5:18:26 PM ET] thanks for sneaking me in question is now that the green apron
[5:18:30 PM ET] conference call. You may now disconnect.
[5:18:30 PM ET] service investments really have been fully in the base for some time it's
[5:18:32 PM ET] look it's clearly was the right strategy
[5:18:36 PM ET] that's obvious but is there now potentially an
[5:18:38 PM ET] opportunity brian to go back and surgically reanalyze the
[5:18:40 PM ET] and potentially see if maybe there's pockets
[5:18:43 PM ET] where you can find opportunities to perhaps get more efficient
[5:18:47 PM ET] now that you've had time with all this learning
[5:18:48 PM ET] and if so could this potentially be a lever for
[5:18:51 PM ET] maybe additional operating leverage moving forward
[5:18:51 PM ET] thanks
[5:18:55 PM ET] yeah thanks for your question you know and i couldn't agree more that
[5:18:59 PM ET] the green apron service labor investment was the absolute right thing for the business
[5:19:02 PM ET] you know the thing that's great to see is and i'm gonna get a little technical with you here but
[5:19:06 PM ET] you know we've got right now a three hour peak in the morning
[5:19:09 PM ET] and the good news is the way we're seeing the business respond
[5:19:11 PM ET] to being staffed deployed correctly in the morning it's giving us
[5:19:15 PM ET] confidence that that three hour peak can actually become a four hour peak in the morning
[5:19:18 PM ET] the reason why that's important is obviously we're earning our way into having additional labor
[5:19:22 PM ET] to support more transactions at a peak type performance
[5:19:25 PM ET] i think you're gonna see the same thing happen in the afternoon you know it'll start out as an hour
[5:19:28 PM ET] then we'll stretch it into two hours and then ideally it'll get to three hours
[5:19:31 PM ET] and if you look at starbucks historically you know way back
[5:19:34 PM ET] when we actually had a four hour morning peak so we are getting back
[5:19:37 PM ET] what we know we can do and you know that is what i get excited about and that's
[5:19:41 PM ET] when you mentioned like in the morning and the reason why that's important is
[5:19:43 PM ET] obviously we're earning our way into having additional labor
[5:19:46 PM ET] to support more transactions at a peak type performance
[5:19:49 PM ET] i think you're gonna see the same thing happen in the afternoon you know it'll start out as an hour
[5:19:52 PM ET] then we'll stretch it into two hours and then ideally it'll get to three hours
[5:19:55 PM ET] and if you look at starbucks historically you know way back
[5:19:58 PM ET] when we actually had a four hour morning peak so we are getting back
[5:20:01 PM ET] what we know we can do and you know that is what i get excited about and that's
[5:20:05 PM ET] when you mentioned like getting surgical that's what i think about getting surgical
[5:20:07 PM ET] which is driving and extending the peaks
[5:20:10 PM ET] so that we give customers better service and our partners are staffed and deployed
[5:20:13 PM ET] to meet the demand that we know and see at those times of day so
[5:20:17 PM ET] we're gonna continue to fine tune it but i really think we're fine tuning it from a standpoint of
[5:20:18 PM ET] driving more growth more throughput
[5:20:19 PM ET] and bigger peaks
[5:20:22 PM ET] so i think that was the last question
[5:20:26 PM ET] yes that was the last question i'll turn it over to brian nickel for closing
[5:20:29 PM ET] getting surgical that's what i think about getting surgical which is
[5:20:32 PM ET] driving and extending the peaks so that we give customers
[5:20:35 PM ET] better service and our partners are staffed and deployed
[5:20:37 PM ET] to meet the demand that we know and see at those times of day so
[5:20:41 PM ET] we're gonna continue to fine tune it but i really think we're fine tuning it from a standpoint of
[5:20:42 PM ET] driving more growth more throughput
[5:20:43 PM ET] and bigger peaks
[5:20:46 PM ET] so i think that was the last question
[5:20:50 PM ET] yes that was the last question i'll turn it over to brian nickel for closing remarks
[5:20:54 PM ET] okay so look thanks everybody for your time you know i i'd like to wrap up
[5:20:57 PM ET] and there's a couple things i just wanna leave you with first
[5:21:01 PM ET] we had a terrific quarter and a great year okay because we got back
[5:21:04 PM ET] to i think winning on the fundamentals and as a result our core business is stronger
[5:21:08 PM ET] we are ahead of schedule and the improvements we've made
[5:21:11 PM ET] gonna be lasting improvements because they're built on the fundamentals of the business
[5:21:14 PM ET] the second thing is back to starbucks i mentioned this earlier
[5:21:17 PM ET] you know it started as a turnaround plan it really is now our growth plan
[5:21:20 PM ET] we delivered five consecutive quarters of positive comps three consecutive
[5:21:23 PM ET] quarters of margin expansion you know we're seeing the tsds perform in the peak
[5:21:27 PM ET] both in the morning the afternoon and all day so we're continuing to feel
[5:21:30 PM ET] really confident in what our growth plan is all about and then the third thing is
[5:21:34 PM ET] i think it's really important as we look at fiscal year twenty seven
[5:21:37 PM ET] we're focused on delivering consistent comp performance that's gonna be
[5:21:39 PM ET] driven by i think the fundamentals of the business
[5:21:43 PM ET] with great innovation both in menu digital
[5:21:44 PM ET] and then obviously across our assets so
[5:21:48 PM ET] we know when we get then the third thing is you know i think it's really important as we look at fiscal year
[5:21:52 PM ET] twenty seven we're focused on delivering consistent comp performance that's going to be
[5:21:55 PM ET] driven by i think the fundamentals of the business
[5:21:59 PM ET] with great innovation both in menu digital
[5:22:00 PM ET] and then obviously across our assets so
[5:22:04 PM ET] we know when we get really good top line we have the ability to
[5:22:07 PM ET] expand the bottom line and i think we demonstrated that as we closed out fiscal year twenty six
[5:22:10 PM ET] and i think that's where you continue to see us do going forward so and then the third thing is
[5:22:14 PM ET] you know i think it's really important as we look at fiscal year twenty seven
[5:22:17 PM ET] we're focused on delivering consistent comp performance that's going to be driven by
[5:22:19 PM ET] think the fundamentals of the business
[5:22:23 PM ET] with great innovation both in menu digital
[5:22:24 PM ET] and then obviously across our assets so
[5:22:28 PM ET] we know when we get really good top line we have the ability to
[5:22:31 PM ET] expand the bottom line and i think we demonstrated that as we closed out fiscal year twenty six
[5:22:34 PM ET] and i think that's where you continue to see us do going forward so really good top line
[5:22:38 PM ET] we have the ability to expand the bottom line and i think we demonstrated that
[5:22:41 PM ET] as we closed out fiscal year twenty six and i think that's where you continue to see
[5:22:44 PM ET] us do going forward so we've got a clear strategy
[5:22:45 PM ET] really proud of our teams in
[5:22:49 PM ET] every single coffee house you know i think the seattle support center is
[5:22:53 PM ET] dialed in and focused on absolutely the right work and we've got a growth plan that we're gonna continue
[5:22:56 PM ET] execute and deliver durable results so i'm super excited about what's ahead
[5:23:00 PM ET] you know we've got a clear strategy really proud of our teams
[5:23:01 PM ET] in
[5:23:05 PM ET] every single coffee house you know i think the seattle support center is
[5:23:09 PM ET] dialed in and focused on absolutely the right work and we've got
[5:23:12 PM ET] a growth plan that we're gonna continue to execute and deliver durable results
[5:23:12 PM ET] so i'm super excited about what's ahead
[5:23:16 PM ET] you know the other thing i'll let you know too is
[5:23:19 PM ET] holiday kicks off next week and you know i've got a
[5:23:23 PM ET] insider's look at what our merchandising looks like
[5:23:25 PM ET] thing i'll let you know too is holiday kicks off next week
[5:23:27 PM ET] and you know i've got a
[5:23:31 PM ET] insider's look at what our merchandising looks like for that all the merchandise looks
[5:23:34 PM ET] fabulous i haven't been here that long but i think it's the best i've ever seen
[5:23:37 PM ET] so i can't wait to get out in the stores next week see the stores turn red
[5:23:41 PM ET] with the great holiday merchandise and if you've never had a tiramisu latte
[5:23:43 PM ET] get ready to have a tiramisu tiramisu latte from starbucks because
[5:23:47 PM ET] i think that's also fabulous so hopefully you can get out there celebrate with your family and friends
[5:23:51 PM ET] know i'll be out there celebrating with our partners as we launch holiday
[5:23:54 PM ET] so look forward to seeing everybody in a few months and i'm sure we'll be talking soon
[5:23:55 PM ET] thank you and
[5:23:56 PM ET] take care
[5:24:00 PM ET] this concludes starbucks fourth quarter
[5:24:03 PM ET] and full fiscal year twenty twenty six conference with the great holiday merchandise and
[5:24:07 PM ET] if you've never had a tiramisu latte get ready
[5:24:09 PM ET] have a tiramisu tiramisu latte from starbucks because
[5:24:11 PM ET] i think that's also fabulous so hopefully you can get out there celebrate with your family and friends
[5:24:15 PM ET] i know i'll be out there celebrating with our partners as we launch holiday
[5:24:18 PM ET] so look forward to seeing everybody in a few months and i'm sure we'll be talking soon
[5:24:19 PM ET] thank you and
[5:24:20 PM ET] take care
[5:24:24 PM ET] this concludes starbucks fourth quarter
[5:24:26 PM ET] and full fiscal year twenty twenty six conference call
[5:24:26 PM ET] may now disconnect

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