Service Properties Trust (SVC) 2025 Conference June 04, 2025 11:00 AM ET Speaker0 Alright, perfect. Alright, good morning everyone. We're gonna get started with our next session. This is Tyler Batory with Oppenheimer. Really happy to be with the management team from Service Properties Trust, SVC. Chris and Brian are with us today. Got some questions prepared for them, but certainly want to encourage audience participation. So, you do have questions at any point, just let me know and we'll get answered. So, ...

Core Viewpoint - Starbucks reported disappointing fiscal second-quarter earnings, leading to a 7% decline in stock price, despite management's assertion of progress in its turnaround strategy [1][3]. Financial Performance - Comparable sales decreased by 1% in the quarter, with transactions down 2% and a 1% increase in average ticket [3]. - North America saw a 1% decline in comparable sales, while international markets experienced a 2% increase, with flat comps in China [3]. - Overall revenue rose by 2.3% to $8.76 billion, falling short of estimates of $8.83 billion [3]. - Adjusted operating margin fell by 460 basis points to 8.2%, and adjusted EPS was $0.41, down 40% year-over-year and below the consensus estimate of $0.48 [4]. Strategic Focus - The company is prioritizing labor investment over cold-brewing equipment expansion to enhance throughput and customer connection [4]. - CEO Brian Niccol expressed confidence in the "Back to Starbucks" plan as a viable strategy for business turnaround and future opportunities [5]. Market Sentiment - Despite negative comparable sales growth, there is a call for investor patience as Niccol has only been in charge for two full quarters [6]. - The stock sell-off is seen as understandable, but it may be premature to abandon the turnaround efforts [7].