'Back to Starbucks' Plan Is Working, Says CEO Niccol

Financial Performance & Turnaround Strategy - Starbucks achieved a 1% increase in same-store sales, signaling a potential return to growth [1] - The company views the fiscal fourth quarter as a critical moment in its "back to Starbucks" turnaround plan [2][4] - Starbucks is optimistic about future bottom-line performance, aiming for increased transaction profitability compared to current levels [19][20] - Margins are expected to improve alongside top-line success, with the goal of returning to pre-COVID earnings levels [19] Operational Improvements & Customer Experience - Implementation of the "Green Apron" service standard, focusing on improved partner staffing, training, and customer connection, led to transaction increases [2][3][6][7] - Store staffing has been increased with more hours allocated, enabling partners to perform their jobs with excellence [3][8] - Starbucks is focused on enhancing the in-store experience through coffee house uplifts, aiming for a better atmosphere and design, with 70 locations completed and a goal of over 1,000 this fiscal year [9][14][16] Competitive Landscape & Pricing - Starbucks acknowledges competition from upstart competitors but emphasizes its strengths as the largest coffee drive-through, mobile order, delivery, and cafe business [29][30][31] - The company aims to compete from a position of strength by delivering a superior customer experience and maintaining its perceived value [30][31][32] International Strategy & Expansion - China experienced its second consecutive quarter of comp growth, indicating positive momentum in that market [5][35] - Starbucks is in the process of finalizing a partnership to further expand its footprint in China, potentially growing from 8,000 stores to 15,000-20,000 stores [33][36] Product Innovation - The introduction of protein-added options is proving to be incremental, attracting rewards customers and increasing frequency [25][26][27] - Over 90% of drinks can now have protein added, aligning with health and wellness trends and offering customers personalization [28]