A：Strategies being implemented as part of the Back to Starbucks plan include addressing supply chain to ensure product availability while reducing future waste, refining the labor model based on store format and performance, and enhancing technology solutions in coffeehouses and support centers.

A：Indicators that the Back to Starbucks plan is working include the achievement of top line growth driven by transactions, the return of positive growth in rewards and non-rewards transactions, and the improved performance across company-operated markets in China, Japan, and the UK.

A：A recent addition to Starbucks' leadership is Anon Vera de Rajan as the new Chief Technology Officer, who joins from a successful career at Amazon. No specific changes were mentioned regarding the former Chief Technology Officer.

A：Starbucks is focusing on improving the coffeehouse experience through the Green Apron service standard, which leverages bigger rosters, new customer service standards, low partner turnover, and the smart Q algorithm to deliver consistent, timely, and personal service.

A：The Grow Program is a new simplified reporting system that evaluates, ranks, and improves coffeehouse performance using key metrics tied to comp growth and within the control of coffeehouse leaders. This system has been used by leaders in North American operations to help them improve performance.

A：The Green Do assist tool has provided a real-time resource to Starbucks' North American coffee houses for looking up beverage troubleshooting, operational issues, and a platform to test and learn and develop and scale AI solutions that reduce friction for partners.

A：Starbucks' overhauled approach to marketing and menu innovations has put the brand back in the cultural conversation and led to a leadership position. The holiday offering and merchandise drove customers into coffee houses, and the company reported a record revenue holiday launch week.

A：Starbucks has completed approximately 1,200 coffeehouse uplifts, primarily in Southern California and New York City, and is on track to complete more than 1,500 by the end of fiscal year 2026. These investments are expected to continue having a positive impact on the business and the customer experience.

A：In its international segment, Starbucks grew revenue by 10% to $2.1 billion and grew comparable sales in the low single digits across its largest international markets, with a standout performance in China where the company achieved three consecutive quarters of comp sales growth.

A：Starbucks announced a partnership with Bou in China, which is expected to help expand into more cities, deliver exceptional coffee experiences, create new career opportunities for partners, and strengthen Starbucks' position as a global brand for long-term growth.

A：Starbucks' expansion efforts in international markets are performing well, as evidenced by the addition of new coffee houses and plans to surpass 1,000 in Mexico. India has crossed 500 coffee houses, and the company announced new expansions in Latin American and Caribbean markets.

A：The key components of Starbucks' current strategic plan include maintaining top-line performance while improving the foundational aspects of the business. Progress to date includes executing on plans, maintaining focus across coffee houses and support centers worldwide, growing both comps and transactions, and enhancing brand affinity and customer connection.

A：The North America segment reported revenue of $7.3 billion, up 3% from the prior year, with comparable store sales growing in the US, supported by a 1% average ticket growth driven by an expanding mix of espresso and tea-based beverages and the popularity of the cold brew platform.

A：The international segment reported revenue of $1.4 billion, up year over year, with international comparable store sales growth led by strong performance across most of its largest international markets, including China, Japan, and the UK.

A：The key factors contributing to the decline in the operating margin were investments in support of the Back to Starbucks plan, product and distribution cost inflation, and tariffs and elevated coffee pricing. These factors led to a 10.1% consolidated operating margin, which was a decrease of 180 basis points from the prior year.

A：The joint venture with Poyou Capital will result in Starbucks classifying the assets and liabilities of its China retail operations as held for sale, ceasing depreciation and amortization, and recording reduced net income and store operating expenses. Post-closing, Starbucks China's retail operations will deconsolidate, and Starbucks will convert its company-operated coffee houses to licensed stores, with income from the joint venture recognized as income from equity investees.

A：The expected growth and store development strategy for Starbucks in the fiscal year includes a forecast of Ed or better global comp sales growth, with a focus on the USA. The company expects to add approximately script to script net new coffee houses, with 150 to 175 net new US company-operated coffee houses, a slight decrease in North America licensed coffee houses, and 6 to 8 net new international coffee houses, with China accounting for nearly half.

A：For the fiscal year, the expected financial outcomes include consolidated net revenue growth similar to global comp growth, a slight increase in consolidated operating margins, and an anticipated reduction in quarterly margin rates due to natural seasonality, with a recovery in the back half of the year. The company expects improvements from anniversarying green apron service investments, sales leverage from ongoing initiatives, and cost discipline. While facing challenges from coffee prices and tariffs, the company anticipates these pressures will peak in Q2 and ease in the back half of the year.

A：The expected impact of the joint venture on EPS is a reduction due to the dilutive effect of the transaction. Starbucks plans to use the proceeds from the transaction for debt reduction and to strengthen its balance sheet, which will facilitate executing its long-term growth strategy with greater financial flexibility.

A：The speaker's confidence in the company's success and competitive position stems from strategies like execution on street corners, expanding the store ecosystem across the country, and ensuring cost-effective buildings for partners to operate with excellence, providing customers with desired experiences in the cafe, drive-thru, and mobile order pickup.

A：The same store sales improvement is attributed to strong service, innovation, and marketing efforts. The reduction in customer complaints and improvement in customer feedback on speed, convenience, and menu relevance suggest a sustainable comp moving forward. The implementation of the Green Apron service model has positively affected the service experience, contributing to these improvements.

A：To ensure the continuation of developing the service model, the company plans to invest in people, such as hiring 'coffeehouse coaches' or assistant managers to support new store openings. The company also aims to enhance the physical presence of its stores by reintroducing seating areas that encourage customers to linger, thereby improving the overall customer experience and perceived value of their purchase.

A：The company's plans for new unit growth include expanding the number of restaurants on corners across the US and internationally, without any barriers to unit growth. The company has focused on building the right units and ensuring the people capability to open new stores successfully. Hurdles addressed include ensuring operational support and addressing build costs and flow for new unit execution. The company's new 'ristretto' building with various size executions and a 'pico' version caters to different access modes and supports new unit openings.

A：The menu has been simplified by reducing the number of SKUs by approximately 25-30%. The company is focusing on new platforms such as a health and wellness platform, with a particular emphasis on protein; an afternoon platform for beverages and food; and a 'baile cas' or bakery-focused platform that emphasizes craft and artisanal products. These platforms aim to align with consumer preferences and provide exciting and marketable options.

A：Starbucks' expectations indicate that while they have made great progress on throughput at peaks, there are still opportunities to improve throughout the day. They aim to get the entire business, every transaction, under the 'hood minutes' metric. The company has achieved excellence at peaks and balanced a day by fine-tuning the model.

A：The improved performance at Starbucks is attributed to more staff experience, a focus on a few key metrics, and a refined model. Future plans involve continuing to focus on speed and convenience to meet demand, further developing the mobile order and pickup business, the drive-through business, and the emerging delivery business. The goal is to dial in the green apron service labor model, provide teams with the necessary reps and stability, and maintain consistent metrics for performance recognition.

A：The projected impact includes earnings continuing to pick up as the company maintains top-line momentum. Inflationary pressures such as coffee and tariffs are expected to peak in Q2 and roll off in the back half of the year, coupled with a conscious effort on costs as part of a $2 billion program over the next two or three years.

A：The protein platform's contribution to Starbucks' sales is significant, as it is a traffic driver attracting new customers or occasions. It has seen a nice recommitment from customers, with high levels of repeat and incremental sales. It has also proven to be a popular addition to Starbucks' menu, with the cold foam protein being especially notable for its versatility in various drinks.

A：Marketing efforts have been instrumental in turning the tide for non-reward customers. They have helped to increase brand affinity, trust, and the brand value score. Starbucks' marketing has made the brand relevant, a leader, and an innovator, resulting in increased visits across all age cohorts. The 'together ad' is an example of the positive emotional connection marketing can create with customers.

A：The long-term plan for Starbucks involves continuing to drive top-line momentum and for earnings to follow. The company will share the growth story at the Investor Day event, emphasizing the importance of the 'back to Starbucks plan' as the strategic currency of the turnaround. The event will highlight the progress and performance achieved by the partners in the stores and support centers, and the continued growth opportunities for Starbucks both in the US and globally.