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Q3 performance strong; confirms “Back to Starbucks” execution - Consolidated net revenues: $9.3B, -1% YoY (mainly accounting impact from China transition to licensing). - Global comps: +7.9%, sequentially improving (notably >4% transaction growth; ticket also up). - Profitability: Operating margin +430 bps YoY to 14.4% (second straight quarter of margin expansion). - EPS: $0.85, +70% YoY (clear earnings recovery progress). - North America leadership: U.S. comps +7.9%; North America operating margin growing YoY for first time since Q1 FY2024 (stronger licensed + company-operated operational improvements).

Raising FY2026 guidance (demand + margin confidence) - U.S. Q4 comp forecast: ~6.5% or better. - Implies FY26 U.S. comps: “a little more than 6%”; FY26 global comps: nearing 6%. - FY26 consolidated revenue: flat to slightly higher YoY (still reflecting China accounting structure). - FY26 consolidated margin guidance: >11%. - FY26 EPS guidance raised: $2.55 to $2.65 (tightened/upgraded at both ends). - Unit outlook unchanged: ~600–650 net new coffeehouse openings in FY26, with continued international contribution.

Key operating drivers (what’s working) - Green Apron Service (launched ~1 year ago): positioned as the operational foundation; focus on throughput, routines, coaching, and accountability. - Stores at 4+ “shots”: 2/3 of North America company-operated shops, +5+ points QoQ and +40+ points since last October. - Smart Queue: improved speed/accuracy; achieved target service times across access points in Q3. - Food availability: close to 99%, about 10 points higher vs. a year ago. - Leader stability: North America Coffee House leaders enrolled for 2+ years up ~7 points YoY (store stability correlated with performance). - Brand + rewards: Starbucks Rewards momentum - 35.8M U.S. 90-day active members; new program “exceeding expectations” (engagement + reload amounts). - Brand affinity/consideration/purchase intent at 5-year highs; customer connection improved significantly. - Menu/marketing innovation: Refreshers doing well (and early data suggests sparkling tests forthcoming); “S’mores” LTO tracking as strongest summer coffee LTO for years. - Third place uplifts: 1,000+ uplifts completed in North America, ahead of FY26 goal; management sees transaction lift across access points/dayparts.