Your last question comes from the line of Dennis Geiger with UBS. SBUX Q1 2020 Earnings Performance. As part of Starbucks quarterly earnings call, Starbucks president and ceo Kevin Johnson will provide specifics on the improving business results the company is driving through COVID-19 as well as details of how Starbucks … Adding drive-thrus out in those metro suburban areas near where people are working from home, it's our highest concentration of drive-thru units. Sure. And so as a consequence, we saw much better profitability than we had anticipated. I'll take your questions. At the same time, we have much better visibility to our ability to manage the middle of the P&L. I will now turn the call over to Kevin. Q3 Fiscal 2020 Starbucks Earnings Conference Call July 28, 2020 02:00 PM PDT Earnings Release (opens in new window) PDF 388 KB Transcript (opens in new window) PDF 338 KB A Starbucks Coffee in Harlem is closed, as retail sales suffer record drop during the outbreak of the coronavirus disease (COVID-19) in New York, April 15, 2020. In terms of should recession -- recessionary period start to hit, I think we've differentiated ourselves. So I feel very good about where we're at. The company temporarily shuttered most of its U.S. cafes between mid-March to mid-April, transitioning to drive-thru and delivery only. These items are excluded from our non-GAAP results. The U.S. business posted a comparable sales decline of 19% in June, improving from minus 43% in May, restoring the business to positive profitability for the month. (RTTNews) - Below are the earnings highlights for Starbucks Corp. (SBUX): -Earnings: -$678.4 million in Q3 vs. $1378.8 million in the same period last year. And Chris, in relation to your question regarding the government stimulus program benefits. Finally, for your calendar planning purposes, please note that our fourth quarter and fiscal year 2020 earnings conference call has been tentatively scheduled for Thursday 29, 2020. And so we feel very comfortable with the ranges that we've given for EPS as well. This has been a quarter where demand for at-home coffee has soared, and our Channel Development business has demonstrated tremendous resilience and gained market share as customers adjust to their at-home routines. It's built trust in our Starbucks partners that we're always going to do the right thing. U.S. same-store sales fell 40% in the quarter. Brian Bittner -- Oppenheimer & Co., Inc. -- Analyst. Loss per share: 46 cents, adjusted, vs. 59 cents expected, Revenue: $4.22 billion vs. $4.07 billion expected. I just wanted to ask a bit about the guidance, if I could. When taken together, these two points indicate a bright future ahead for all stakeholders of the Starbucks Coffee Company. Prioritizing the health and well being of Starbucks partners and the customers we serve. Convenience store formats, digital customer engagement and plant-based menu items. GAAP results in fiscal 2020 and fiscal 2019 include items that are excluded from non-GAAP results. Executives said that they expect same-store sales to recover more substantially in China and the U.S. by the end of its fiscal first and second quarters, about a year after the crisis began, assuming there are no new sustained waves of infections or major economic disruptions. I feel very good about the strategic initiatives. And so we are in many ways we're back in March, April, people would describe this as we are navigating a crisis, this global pandemic. I would like to welcome everyone to Starbucks Coffee Company's Third Quarter Fiscal Year 2020 Conference Call. Each of these Starbucks Pickup stores will ideally be located within a three minute to five minute walk from a traditional Starbucks store, giving customers the flexibility to enjoy their beverage in our store or on-the-go. And we saw that certainly in the month of June where we saw a very good response from customers that helped us exceed expectations on what we would see in sales and then that's continued into July to progress. First of all, although our sales mix has really tilted to more toward launch and afternoon since the onset of COVID, morning still remains a significant daypart for us. The last several months have been quite unprecedented in regard to public health and commerce given the impacts of COVID-19. Number two is extending that experience in our store to digital customer relations -- relationships. The contraction was due primarily to a business mix shift within Channel Development as well as deleverage on fixed coffee manufacturing costs shared across the company's operating segments driven by lower retail production volumes, resulting from COVID-19. And we believe these are the kinds of initiatives that will make a difference as we try to regain the most important parts of our business and watch what happens as the transition from work from home returns back to work from office, and we'll be watching the customer patterns very carefully and adjusting. COVID-19 Impacts Expected to Moderate Meaningfully in Q4 as Recovery Continues. But some customers just moved their daily coffee run to later in the morning or early afternoon, leading the company to reallocate its baristas' hours. Q3 Consolidated Net Revenues of $4.2 Billion, Down 38% from Prior Year Due to Adverse Impact of COVID-19. And I think part of that is a function of people work from home. At $2.8 billion dollars, revenue for our Americas segment was 40% lower in Q3 than the prior year, largely due to a 41% decline in comparable store sales, including minus 40% in the U.S. We estimate the decline in Americas revenue and operating income attributable to COVID-19 in Q3 to be approximately $2.3 billion and $1.5 billion respectively. Non-GAAP EPS was considerably better than the preliminary guidance range that we provided in our 8-K on June 10, driven by better than expected sales and margins. Yeah. And how you think about product innovation around that? Q3 Fiscal 2021 Starbucks Earnings Conference Call (tentative) July 27, 2021 02:00 PM PT. The segment's comparable store sales in Q3 also reflect a 2% benefit related to temporary value-added tax or VAT exemption in China. We are pleased with the progress we are making in China to recover sales. So that is -- so it serves two purposes. We have moved aggressively to advance our evolution of the store base, to accommodate trends that we have long seen emerging in our business that were only exacerbated by COVID-19. And so the Mastrena 2 is at 4,000 stores as we speak. Starbucks Corporation SBUX will report third-quarter fiscal 2020 results on Jul 28, after the closing bell. Simultaneously, there is a powerful awakening under way in America to address systemic racism and social inequality, issues that Starbucks has always embraced, believing that we have a role and responsibility to advance positive change. Thank you. The lion's share of our investment in Q3 was around catastrophe pay, a form of partner support and care. So it will do both of those things. Plant-based is becoming a very popular whether it's plant-based milks or the Impossible breakfast sandwich that we launched in the U.S., the Beyond Meat offerings that we put on the menu in Canada and China. Let me start off. Starbucks Q4 2019 Earnings Infographic They successfully have done that Beijing. Please proceed with your question. And it is what our partners and customers expect of us. We reignited marketing. They're attaching more food. And that's why, for example, we're deploying these handheld point-of-sales. So -- and we know that contactless experience for our customer is more present than ever. They build that relationship with Starbucks, we can communicate with them, we can serve their needs, we can personalize that experience for them. First of all, morning daypart, as you well described is important to us. Costs related to the pandemic, like paid leave for baristas and added safety measures, weighed on its profits. Hi. For instance, we are going to be introducing a plant-based protein box because we know in the afternoon there is this extra boost needed. This was a notable sequential improvement to May's comp on a like-for-like basis. Through a combination of new store operating protocols and service channels, we were able to amplify a number of contactless experiences for our customers, including drive-thru, entryway pickup with mobile order and pay and delivery. This significant new addition will open up an invitation to join Starbucks Rewards to a much wider audience. Revenue was expected to drop 40% to $4.11 billion. Thanks for your question or your comments and for your question. I think that deposit in the reservoir of trust is building and strengthening customer affinity. Starbucks Corporation - Starbucks Reports Q3 Fiscal 2020 Results. Given the strength of our brand, our advanced digital capabilities and our strong balance sheet, I believe this is one of those rare opportunities to move aggressively and further differentiate Starbucks from our competition, and I will highlight three areas where we are doing just that. And second, in response to clear shifts in consumer behavior and preferences, we are now accelerating strategic initiatives for the future and positioning Starbucks for continued, long-term growth. We continue to see improvements in the morning peak period as well as some customer occasions shifting to later in the morning daypart. While nearly half of our sales now comes from Rewards members who are pre-loading their store value cards, we've heard from many more customers that they would like an option to earn rewards when paying directly with cash, credit, debit and select digital wallets. Previously, this service was only available through our Starbucks China Mobile App. In addition to accelerating our store transformation strategy, we are creating new capabilities that expand digital customer engagement. Based on what we've learned as we've navigated the impact of COVID-19 for the past six months as well as the innovations and growth that we planned for next year, and barring any new major and sustained waves of infection and/or global economic disruptions, we anticipate that comparable store sales will substantially recover in China and the U.S. in fiscal 2021 by the end of our first quarters and second quarters respectively. Please proceed with your question. We did see stronger than expected sales recovery across the month, but the profit improvement was outsized in relation to the sales recovery, as you highlighted. It would be kind of be apparent that you would be able to run stores with less operating hours if there is a shift toward digital, if there is a shift toward off-premise. We now expect GAAP EPS in fiscal 2020 of $0.50 to $0.65 and non-GAAP EPS of $0.83 to $0.98. We've got lots of points of presence. As I said in my prepared remarks, our preliminary perspective on fiscal '21 presumes that there will be no major second wave or no major macroeconomic dislocation. Non-GAAP EPS in Q3 was a loss of $0.46, down from a profit of $0.78 in the prior year inclusive of an estimated $1.20 negative impact of COVID-19, which includes flow through on the revenue impact that I noted earlier as well as significant investments that we made in response to the pandemic, which I will outline later. We expect the VAT exemption will expire at the end of December. Today, we have an industry-leading digital platform and a rewards program that didn't exist back in 2008, 2009. We believe that customers are embracing plant-based choices because they are good, good. "We still have a long ways to go to get back to full recovery, but we're optimistic based on the strength of our brand and the strategy and initiatives that we have to drive sales and improve margins," CFO Pat Grismer said. Starbucks' (SBUX) fiscal third-quarter results are likely to reflect dismal performance of Americas and China. Additionally, customer affinity for Starbucks is very strong, as demonstrated by improvements in our customer connection scores, growth in customer loyalty and market share gains, while we anticipate these improvements to continue, our balance sheet and the strategic actions we have taken to position Starbucks to weather a more protracted disruption in global economic activity. SEATTLE-- (BUSINESS WIRE)-- Starbucks Corporation (Nasdaq: SBUX) plans to release its third quarter fiscal year 2020 financial results after the market close on Tuesday, July 28, 2020 with a conference call to follow at 2:00 p.m. PT. Just looking to talk a little bit about the broader outlook from a consumer perspective. And that was our last question today. As part of our ongoing partnership, we are expanding our reach to customers across the Chinese Mainland by introducing the Starbucks Now mobile order-and-pay feature to multiple platforms in the Alibaba Digital Economy, including Taobao, Digital Mapping, an information provider and map, local services app Qbay and Alipay, which serve a combined user base of nearly 1 billion customers. Margins are expected to follow in the next two quarters. Our liquidity position remains strong and continues to improve. In terms of recession, I'll leave the predictions of economic growth to the economists. So we are seeing group ordering where we believe we're seeing larger beverage size and additional beverage and food attached. Starbucks Earnings: SBUX Stock Jumps 2% on Q3 Beats SBUX EPS and revenue were above estimates By William White , InvestorPlace Writer Jul 28, 2020, 4:23 pm EST July 28, 2020 And because they are a company-owned market, we saw that -- saw with that a significant improvement in profit for the month of June compared to our original expectations. If you can give a comment on that specifically, because that's what we are hearing from other restaurants? So thanks everybody. Q3 GAAP EPS of -$0.58; Non-GAAP EPS of -$0.46 Reflecting Material Sales Deleverage and Retail Partner Support. And I'm very proud of how Starbucks partners around the world have responded during this global pandemic. Does it really widen the funnel? And they now have the option to earn one star per $1 spent when you pay with a credit or debit card, cash or select mobile wallet. Globally, we expect comparable store sales for Q4 and for fiscal 2020 to decline between 12% and 17%, demonstrating sustained sequential improvement, including across both of our key markets of the U.S. and China. So it is on that basis that we've provided preliminary perspective, and we'll continue to keep investors updated as we go. That's woven into the fabric of how we operate, and partners are rising to the occasion. Returns as of 12/20/2020. Mobile order sales mix reached 23% of sales in Q3 with 12% coming from delivery and 11% from mobile order-and-pay, well above the mid-teens levels we saw pre-COVID. Those businesses that fail to evolve, typically fall behind. By adding this capability to Starbucks Rewards, we will give customers more ways to pay and earn rewards when using the Starbucks App. And so we're able to get out of the store, get out in that line, put an order and in a queue much faster and get those out-the-window times down and get the beverage and food items to the customer much quicker. And so our beverage innovation is going to continue to focus on all the great things we've been doing around our cold beverage lineup, with cold foam, coffee forward beverages, our refreshers, all of that is going to continue to move forward. My hope is that from this call you understand and take away two important points. Good afternoon, my name is Devin, and I will be your conference operator today. In addition, we're also seeing that in some of our really dense workplaces, for instance, downtown areas where we have stores where there is more work from home in those geographies, those have been slower to recover. As we reopen stores, we created safe, familiar and convenient experiences for our customers. Your next question comes from the line of David Tarantino with Baird. Thank you, Roz. Excluding items, Starbucks lost 46 cents per share, narrower than the loss of 59 cents per share expected by analysts surveyed by Refinitiv. Today, customers are seeking safe, familiar and convenient experiences in many aspects of their lives. And we're accelerating the strategic initiatives that further differentiate Starbucks for the future. And it's all credit to our Starbucks partners. I will now turn the call over to Durga Doraisamy, Vice President of Investor Relations. We put people ahead of profit, whether it was providing economic certainty for our partners or ensuring that our customers had safe ways to interact with us. Adding it all up at the enterprise level, globally, we expect revenue to decline between 10% to 15% in Q4 versus the prior year, primarily reflecting the negative impact of COVID-19, which we estimate to range between approximately $1.4 billion to $1.65 billion. Please proceed with your question. Jeffrey, this is Kevin. First, our recovery strategy is working, as evidenced by the improving business results across all of our key segments. Kevin Johnson — President and Chief Executive Officer. In summary, Starbucks sales and profits are recovering nicely. That's the experience in our stores and these different channels we're talking about. But also acknowledging that like everyone else in this world, we've got to monitor and adapt and be agile. Please proceed with your question. Andrew, thanks for the question. We still have a long ways to go to get back to full recovery. David Tarantino -- Robert W. Baird & Co., Inc. -- Analyst. Thanks, David for the question. But it is premature to say whether those costs will drive a structural change to our operating margin as we continue to innovate our operating systems and technology to improve throughput and drive efficiencies. Starbucks Corp (NASDAQ: SBUX) Q3 2020 earnings call dated July 28, 2020. Its home market's same-store sales are expected to shrink by 12% to 17%. -EPS: -$0.58 in Q3 … So we were in test of about 250 stores, really pleased with what we saw in those stores with curbside, which encouraged us to accelerate, and we will be in close to 1,000 stores in short order here. Starbucks (SBUX) Q4 Earnings & Revenues Surpass Estimates - October 30, 2020 - Zacks.com The segment's comparable store sales declined by 37% in Q3 relative to the prior year, but exceeded the expectations we shared last month, primarily driven by Japan's faster than expected pace of sales recovery, boosted by successful seasonal product promotions. Let me just thank all of you for joining us today. And then as Roz said, the work they've done on increasing throughput at drive-thru and watching curbside, that just opens up new channels. Thanks for the question. Roz, I'll let -- if there's anything else you want to add or -- and then Pat who got some comments too. In addition to comp sales recovery, we reignited new store development, crossing the 4,400 store milestone with the opening of almost 100 net new stores in the quarter. Starbucks Corp (NASDAQ:SBUX)Q3 2020 Earnings CallJul 28, 2020, 5:00 p.m. Your next question comes from the line of Jon Tower with Wells Fargo. In fact, you look at what we've outlined. Rosalind Brewer -- Chief Operating Officer and Group President. So we have marketing plan for the remaining of the year and throughout fiscal year '21. Also, helping us understand the activity of the customer as we reward the loyalty and delivering personalized offers to the expanded customer base. Starbucks Reports Q3 Fiscal 2020 Results. I will then discuss our guidance for Q4 and fiscal 2020, followed by a preliminary perspective on fiscal 2021. We now expect GAAP EPS in Q4 of $0.06 to $0.21 and non-GAAP EPS of $0.18 to $0.33. So we continue to work that like we've done in the past with a lot more visibility over what's needed to fulfill the demand in those stores. We will build on this momentum in the fall when we introduce a new pay-as-you-go option for Starbucks Rewards members in the U.S. and Canada. So this program is just to North America at this time, and there is a different program that we use in China. Importantly, both sales and profitability trended positively across the quarter with sequential improvements in each month and comparable store sales were toward the better end of our guidance range. Revenue was $447 million in Q3, a decline of 16% from the prior year. I'm just wondering if you could talk about your performance a dozen or so years ago and why maybe the brand better insulated this go around, maybe comparing and contrasting the U.S. versus China? Durga Doraisamy -- Vice President-Investor Relations. All Rights Reserved. So we're not walking away from that. Anything more there -- metrics to share or just kind of how you're thinking about that customer dynamics? But because it was such a large market, I think that's what's slowed it down. We're also looking at premiumizing the category, expanding consumption and driving loyalty through our Channel Development business as well. We're doing this in a way that is true to our mission and our values, and we're on the front foot right now. Please proceed with your question. Hi. Starbucks today announced its Q3 FY20 earnings results, providing insight into the company’s continued road to recovery from the COVID-19 pandemic. United by our mission and values and guided by three simple principles. And we're seeing a shift to mid-morning around that 9:30 timeframe and then another pickup in the afternoon, around 2:00 PM. These dynamics have contributed to a meaningful increase in average spend per order compared to pre-pandemic levels, leading to 25% average ticket comp growth for the quarter. Thank you. It now expects to earn between 6 cents to 21 cents, down from its prior forecast, released in June, of 11 cents to 36 cents. Thanks for taking the question. You order on your phone and then you can pick it up contactless or you can get it for delivery. Yes. We're really comfortable that we now have so many different channels to our business. Sure. As digital adoption accelerates in China, we continue to innovate in ways that deepen customer relationships and extend the reach of the Starbucks experience across a variety of digital platforms and ecosystem. We estimate the operating income decline related to COVID-19 to be approximately $850 million to $1.1 billion globally, reflecting a flow through rate of roughly 60% to 65% on lost sales in Q4. Data is a real-time snapshot *Data is delayed at least 15 minutes. Just to add a high level, a lot of retailers or restaurants have determined they can do more with less during this period of time,and they've learned that they can make labor more efficient, menus more efficient. In addition, with national coverage in the U.S., Starbucks Delivers transactions tripled in Q3 from Q2 levels, with the highest volume in the late morning and mid-day. First, our recovery plan is working. We estimate that the COVID-19 impact to decline in International's Q3 revenue and operating income with approximately $760 million and $420 million respectively. Why is this important? But based on the experience we've gained to-date, based on how well we know our brand and how consumers are responding to our brand, based on the strength of our rewards program and our digital platform, we are building operating plans for next year that presume the levels of sales and profit recovery that I mentioned. I don't know how many of you have seen a drive-thru, Starbucks drive-thru. And maybe describe some of the other initiatives that you believe could have a meaningful impact on capacity and throughput? In terms of capacity and what we think could help, for instance, our drive-thru. The considerable investments we have made in our partners and other stakeholders, which honor our company mission and values combined with evolving our store portfolio, leave us as confident as ever in a unique strength and appeal of our brand and position us to unlock the full potential of Starbucks. Starbucks, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $6.20 billion for the quarter ended September 2020, surpassing the … The conference call will be webcast, including closed captioning, and can be accessed on the company’s … And then I wonder if you can comment a little bit about marketing? We are accelerating efforts to expand these offerings for our customers. [Operator Instructions] Your first question comes from the line of Jeffrey Bernstein with Barclays. This benefit was largely offset by traffic softness that emerged in Beijing in the last two weeks of the quarter due to a resurgence of COVID-19 in that city. So I think about this as the investments we made this quarter, we're playing the long game. Hi, thank you. A Starbucks Coffee in Harlem is closed, as retail sales suffer record drop during the outbreak of the coronavirus disease (COVID-19) in New York, April 15, 2020. I think the brand is strong. We remain committed to doing so as we adapt the store portfolio to cater to evolving patterns of consumer behavior, including on-the-go consumption, mobile order and pickup, drive through and contactless pickup and delivery in accordance with our multi-year strategy, which has been further validated by the unfortunate dynamics created by COVID-19. And we are now reimagining how we further elevate the customer experience by leveraging these various store formats to create a network of stores in a community. It's encouraging what we saw in our trial base. And so our innovation agenda is going to continue to drive around the things that we know are relevant to our customers, things that inspire our partners and stay true to handcrafted beverages, that's what differentiates us. ... including Starbucks Annual Report on Form 10-K for the fiscal year ended September 27, 2020. And I think that's a very positive thing because I think as a company, we've now taken this playbook that was developed in China and adapted for the U.S. and we basically have embedded this into our store protocols and our operating procedures. Thanks. Great. For example, we're focusing on accelerating e-commerce based on the shift in shopping patterns and meeting consumers' evolving needs. Starbucks Corp (NASDAQ:SBUX) Q3 2020 Earnings Call Jul 28, 2020, 5:00 p.m. All of this indicates that customers are adapting their routines, and we are well positioned to drive further recovery by simply increasing throughput and enhancing those safe, familiar and convenient experiences customers desire. Always going to do to market, the priority or the customer in terms of should recession recessionary. And delivering personalized offers to the reconciliation of GAAP measures to non-GAAP measures at consolidated! 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