A：For Starbucks' fourth quarter fiscal year 2025, the key financial results included 5% global revenue growth and a 1% increase in global comparable store sales. The North America company operated comps improved by being flat year over year, with positive comp growth in Canada and the US. The international segment grew by 3% comp sales, led by strong performance in Japan, China, the UK, and Mexico.

A：Following the implementation of Green Apron Service, Starbucks expects to improve customer service with a focus on throughput, ensuring customers get their order on time. The company has seen positive results in reduced transaction times and improved accuracy with the rollout of the Smart Q sequencing algorithm. The delivery business has also grown significantly, and Starbucks is nearing the completion of the rollout of its Clover Vertica brewer.

A：Starbucks is addressing profitability and customer experience by piloting a new coffeehouse prototype with lower costs and optimized space, which still adheres to the brand's image. The company is also implementing Uplift renovation programs to bring warmth back into coffee houses and has completed nearly 70 uplifts with positive sales and transaction improvements. Starbucks plans to complete over 1,000 uplifts by the end of fiscal 2026.

A：Starbucks is focusing on customer service by investing in Green Apron service, which has led to improved service times, connection, and care perceptions. The company has also brought back the condiment bar, simplified pricing, and removed extra charges for non-dairy milk, enhancing the value perception for customers.

A：The Uplift renovation program has seen improvements in sales and transactions, with nearly 70 uplifts completed primarily in New York and Southern California. Starbucks plans to complete more than 1,000 uplifts by the end of fiscal 2026. On the other hand, the company's North America company-operated store count declined by approximately 1% on a net basis.

A：Changes to Starbucks' marketing and menu innovation strategies include the introduction of protein cold foam and protein lattes, which are made with premium ingredients and align with Starbucks standards. These new menu items are part of a disciplined, stage-gated innovation pipeline that is expected to provide steady innovation and attract more customers.

A：Starbucks' international expansion is highlighted by a record revenue of $2.1 billion in the fourth quarter and the opening of 316 net new coffee houses, bringing the total to over 12,000. The company continues to extend its global reach with plans to open more flagship coffee houses in 2026. In China, the team delivered 2% comp growth, and the company expects to retain a meaningful stake and see long-term growth potential in the region.

A：For fiscal 2026, Starbucks' strategic direction includes rebuilding its core, strengthening its foundation, and focusing on executing with excellence and driving growth through innovation. The company aims to become the world's best customer service provider by empowering leaders, scaling the Assistant Store Manager role, and simplifying store-level reporting. Additionally, Starbucks intends to enhance the holiday customer experience and focus on Green Apron service.

A：The areas of focus include inventory availability and food safety. The company is providing tools, processes, and consistency to deliver a standard customer experience across all coffee houses and enhancing support for licensees to better serve Drive-through customers. Improvements are also being made in the supply chain to support menu innovation and inventory availability.

A：The company has worked on menu innovation, supply chain efficiency, and has continued to optimize and up-level the matcha menu. Improvements to the rewards program, mobile app, and brand activations are expected to be announced. The company is driving menu innovation that wins in the morning and supports the afternoon. Enhanced service through the Green Apron team has been implemented in the U.S. company-operated coffee houses, and there has been an intentional shift away from discounting strategies to improve transaction quality.

A：The success of the strategy is dependent on the people who are executing it, as stated by the speaker. The strategy's progress is being realized through tangible changes and real growth led by the partners in various regions mentioned.

A：The speaker acknowledges the significant changes and fast pace over the past year, thanking partners across the company for their excellent execution. Specific thanks are given to 'green apron' partners and support partners for bringing the strategy to life daily, with a particular shoutout to teams in Austin, Naville, and New York for their contributions in their respective areas.

A：Q4 consolidated revenue was $9.6 billion, up 5% from the prior year, driven by 2% net new company-operated store growth and a 1% increase in global comparable store sales. This was supported by outperformance internationally, positive Canadian comps, and progress in the U.S. The U.S. comparable store sales were flat with a ticket up 1%, while U.S. company-operated transaction comps were down. The 90-day active Starbucks Rewards member base grew, and the revenue from the U.S. licensed store portfolio declined due to trends in grocery and retail channels, but there was positive growth in travel, particularly in airports.

A：The company is rebuilding the transaction base by focusing on improving the overall value proposition for customers, evidenced by positive transaction-led comp sales growth in September. The closure of underperforming stores is expected to reduce baseline North America company-operated revenues, but sales transfers to nearby stores should partially offset this impact. Operating margins are expected to be slightly accretive due to these store closures.

A：The U.S. company-operated business is expected to continue positive trends with progress in Green Apron service standard ramping and fewer promotional activities. A strong holiday lineup, future menu innovation, and coffee house upgrades are anticipated. While there is progress, the business will continue to rebuild its transaction base, and turnarounds are difficult to forecast. The company remains disciplined on costs and focused on investments that align with their 'back to Starbucks' priorities. The goal is to increase the quality and profitability of each transaction.

A：The introduction of the 'Green Apron Service Standard' has led to positive customer experiences, with the brand focusing on craft and customer connection across various channels like mobile orders, drive-through, and the cafe. It has resulted in improved transaction comp growth and overall positive comps in September. The service model is credited with freeing up staff to focus on customer connections and customizing beverages.

A：The protein platform has received positive feedback from customers for its delicious protein-rich offerings across various Starbucks drinks. The platform allows for customization and protein can be incorporated into a wide range of beverages. The protein platform is considered a tremendous value due to the customization and protein content it provides.

A：The protein platform has not only improved customer experiences through the addition of protein to a wide range of Starbucks drinks but has also led to increased frequency of visits from customers. The platform's success has allowed Starbucks to open earlier, creating a positive feedback loop that is expected to further drive transactions and improve overall business results.

A：The Green Apron Service Model was implemented in August and is in the process of being fully integrated. It has been positively received, with initial试点的650 stores outperforming the rest of the company. The model is expected to improve as rosters get populated, teams gain experience with the additional investment, and customers become familiar with the new service approach.

A：To address staffing and service issues, Starbucks introduced the Green Apron Service standard, which involved fixing missteps in the service process. The new model focuses partners on improving order sequence and execution across various channels, allowing them to concentrate on customer service. This change has reportedly improved customer perceptions and experiences.

A：The factors driving Starbucks' outperformance in the morning transactions include better speed of service while maintaining craft and connection, leading to improved transactions over 15 minutes and translating into flat transaction performance in Q1.

A：Starbucks is focusing on improving some drinks and food offerings in the afternoon as part of its strategy to grow in that part of the day. Sequential improvements have been made, and staffing levels have increased, which is aiding better service and business results in the afternoon as observed in the morning.

A：The impact of staffing levels on Starbucks' afternoon operations is positive, with correct staffing allowing for better service and business results. As part of the Green Apron service model, additional staffing was first implemented in the morning and then extended to the afternoon, leading to observed sequential improvements.

A：The initial investment for the Green Apron service model has been made, and it is now an operating standard. Additional labor costs will be earned through the company's growth, so no further investments are expected. Regarding commodity prices, especially coffee, efforts are being made to find offsets within the business, and there is hope for price normalization by the backside of the year.

A：Certain coffee houses were closed because they did not demonstrate a viable path to profitability, which was determined by a financial filter and an assessment of whether they could provide a return Starbucks would be proud of. The closures are expected to be slightly accretive to profitability since the closed units were unprofitable.

A：The primary factor affecting the viability of a coffee house is the top line or revenue growth. A great coffee house requires growth in the top line, and the ability to generate revenue is crucial for its viability.

A：Starbucks is managing sales transfers with the closure of some coffee houses by maintaining great density and ensuring that sales are transferred where possible. This has resulted in higher-than-expected sales transfer, which is positive for the company.

A：The anticipated outlook for Starbucks' fiscal year 2026 and long-term growth includes a focus on transaction growth and an expectation that earnings will lag top line growth. The company plans to continue its strategy of ensuring each transaction is profitable. More detailed guidance will be provided at the upcoming Investor Day.

A：Starbucks' pricing strategy and same-store sales growth considerations include a strategic and targeted approach, monitoring inflation in wages and commodities, and being cautious about using pricing as a lever. The company aims to maintain a good value proposition for customers. Recent positive trends in same-store sales from September through October are also guiding the outlook for the current quarter.

A：Earnings are expected to lag as the company annualizes the impact of the investments, specifically the green apron service. However, cost structure work done is anticipated to contribute to some offset. The investments in the green apron service are expected to start showing benefits, and while it's premature to give guidance, it's implied that these will lead to positive changes in earnings even versus the past, though not to the extent experienced in the past.

A：Starbucks has observed a positive response in transactions and sales from every generational cohort, including the younger consumer base under age 35. The strategy involves delivering an exceptional customer experience to increase customer choice and value, which has been reflected in transaction growth. The company aims to ensure customers feel that their dollar was well spent, which is a trend observed throughout the day as it strives to provide a great experience. This positive feedback is a key component of the company's strategy moving forward.

A：Starbucks has reviewed its strategy and structure for the license business and identified opportunities for continued growth within it. The company plans to work differently with licensed partners and has restructured its support for the business. The focus is on unique growth opportunities and having strong partnerships at both small and large scales. The aim is to build the right next set of units and ensure they meet the company's grain apron service standard. This approach is expected to facilitate tailored execution across different channels while believing in the potential for significant growth in the license business.

A：Starbucks views the increase in competition from emerging beverage brands as an opportunity to enhance its performance. The company's strategy is to maintain its focus on craft, customer connection, and exceptional experience in beverages, food, and digital services. Starbucks already has a substantial presence across various access points, including the largest drive-through coffee chain, mobile order, and digital coffee business, as well as the largest cafe coffee business in America. The company believes in the importance of scale and has a unique positioning around craft, connection, and customer experience. Starbucks is motivated by competition, seeing it as a way to improve and be better than it was yesterday, which aligns with being on its best offense.