Starbucks Corp

Q3 performance: strong sales momentum + clear margin recovery - Consolidated net revenues: $9.3B (-1% YoY), largely impacted by China deconsolidation to a license/joint venture structure. - Global comps: +7.9%, sequentially improving vs prior quarter; transaction growth >4% and ticket growth supported by delivery + innovation (pricing <1 point of ticket growth). - Operating margin: 14.4% (+430 bps YoY) and EPS: $0.85 (+70% YoY) → strong “earnings catching up” signal.

U.S./North America: operational turnaround indicators + best momentum since 2024 - North America comparable store sales: +8.1%, led by the U.S. +7.9% (transactions +4.2%, ticket +3.6%). - Notable positive: North America operating margin growing YoY for the first time since Q1 FY2024 (driven by operational improvements and cost discipline). - Strategy working operationally: Green Apron Service (launched ~1 year ago) is described as the “operating foundation,” with improved throughput/service times and food availability rate ~99% (about 10 points better vs a year ago). - Coffeehouse leader stability improving (North America coffee house leaders enrolled 2+ years ~+7 pts YoY), which is linked to better store performance.

Brand/innovation & loyalty: demand support looks durable, not just pricing-led - Brand metrics (affinity/consideration/purchase intent) reached 5-year highs; “customer connection” improved materially YoY. - Loyalty strength: 35.8M 90-day active U.S. Starbucks Rewards members (program launched ~4 months prior; engagement and card reloads exceeding expectations). - Innovation drivers: Refreshers delivered double-digit YoY revenue growth in the U.S.; S’mores LTO highlighted as strongest summer coffee LTO in past several years; meaningful marketing “culture moments” referenced.