Financial Data and Key Metrics Changes - Consolidated revenue for Q4 was $9.6 billion, reflecting a 5% increase year-over-year, driven by 2% net new company-operated store growth and a 1% increase in global comparable store sales [23][24] - Earnings per share (EPS) for Q4 was $0.52, down 34% from the prior year, primarily due to investments in the business and restructuring costs [28][29] - Consolidated operating margin was 9.4%, contracting 500 basis points from the prior year, mainly due to inflation and investments in labor [28][29] Business Line Data and Key Metrics Changes - U.S. comparable store sales were flat year-over-year, with ticket up 1%, reflecting fewer discount-driven offers [23] - International segment reported 9% year-over-year net revenue growth in Q4, reaching over $2 billion, with strong performance in China, Japan, the U.K., and Mexico [25][26] - The delivery business in the U.S. grew nearly 30% year-over-year in Q4, surpassing $1 billion in sales for the full fiscal year [10] Market Data and Key Metrics Changes - North America company-operated comparable store sales improved to flat year-over-year, with positive comp growth in Canada [6][23] - Starbucks China achieved 2% comparable store sales growth in Q4, driven by a 9% improvement in comparable transactions [25][26] - The international segment's revenue reached an all-time high of $7.8 billion for the fiscal year [15] Company Strategy and Development Direction - The company is focused on its "Back to Starbucks" strategy, emphasizing customer connection and craft, while also innovating across various access points [5][39] - Investments are being made in staffing and operational hours to enhance customer experience and service speed [9][10] - The company is piloting a new coffee house prototype with lower build costs and optimized space utilization [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, noting that Q4 marked the first quarter of global comparable sales growth in seven quarters [32] - The holiday season is anticipated to be a significant opportunity for the company, with a focus on delivering a warm and welcoming customer experience [17] - Management acknowledged the challenges posed by inflation and dynamic coffee prices but remains optimistic about long-term growth potential [66][68] Other Important Information - The company closed 107 net stores globally as part of its restructuring efforts, which are expected to be slightly accretive to profitability [29][30] - The company plans to continue its disciplined capital deployment and improve profitability of new coffee houses [30][31] - The company announced an increase in its quarterly dividend, marking the 15th consecutive year of increases [33] Q&A Session Summary Question: Concerns about the "Back to Starbucks" strategy - Management clarified that the strategy is comprehensive and aims to enhance customer connection and craft across all service channels, not just in-cafe [36][39] Question: Feedback on the Protein Platform and pricing - Management reported positive feedback on the Protein Platform, with customers appreciating the customization and value it offers [42][44] Question: Progress of the Green Apron Service model - Management indicated that the Green Apron Service is building momentum, with initial pilot stores outperforming others, and expects continued improvement as teams adapt [49][51] Question: Impact of store closures on profitability - Management stated that closures were based on customer experience viability and financial performance, and they expect some sales transfer to nearby stores [70][72] Question: Future pricing strategies and value perceptions - Management emphasized a strategic approach to pricing, monitoring value perception closely while navigating inflation challenges [80][81]

Financial Data and Key Metrics Changes - The company reported consolidated revenue of $9.6 billion for Q4, reflecting a 5% increase year-over-year, driven by 2% net new company-operated store growth and a 1% increase in global comparable store sales [23][24] - Earnings per share (EPS) for Q4 was $0.52, down 34% from the prior year, primarily due to inflation and investments in the Back to Starbucks strategy [29][33] - The consolidated operating margin for Q4 was 9.4%, contracting 500 basis points from the prior year, mainly due to inflation and increased labor costs [28][29] Business Line Data and Key Metrics Changes - U.S. comparable store sales were flat year-over-year, with ticket prices up 1%, reflecting fewer discount-driven offers [23][24] - The international segment reported a 9% year-over-year net revenue growth in Q4, reaching over $2 billion, with strong performance in China, Japan, the U.K., and Mexico [25][26] - The channel development segment saw a 16% year-over-year revenue growth due to higher revenue from the Global Coffee Alliance [27] Market Data and Key Metrics Changes - The international business ended the year with record revenues of $7.8 billion, opening 316 net new coffee houses in Q4, totaling over 900 for fiscal 2025 [15] - Starbucks China achieved 2% comparable store sales growth in Q4, driven by a 9% improvement in comparable transactions [25][26] - The U.S. licensed store portfolio revenue declined in Q4, primarily due to trends in grocery and retail channels, while travel segments showed positive growth [24][25] Company Strategy and Development Direction - The company is focused on its "Back to Starbucks" strategy, emphasizing customer connection and craft, with significant investments in staffing and service standards [5][8] - The rollout of the Green Apron Service aims to enhance customer experience and operational efficiency, with positive early results observed [9][10] - The company is piloting a new coffee house prototype to optimize space utilization and reduce build costs while maintaining a full coffee house experience [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, noting the first positive quarter in global comparable store sales in seven quarters [6][22] - The holiday season is anticipated to be a significant opportunity for growth, with a focus on delivering a warm and welcoming customer experience [16][17] - The company acknowledges ongoing challenges with inflation and commodity prices but remains optimistic about long-term growth potential [28][32] Other Important Information - The company completed 107 net store closures globally as part of its restructuring efforts, which are expected to be slightly accretive to profitability [30][31] - The company plans to continue investing in Green Apron Service and menu innovation to drive customer engagement and transaction growth [19][20] Q&A Session Summary Question: Concerns about the "Back to Starbucks" strategy - Management clarified that the strategy is comprehensive and aims to enhance customer connection and craft across all service channels, not just in-cafe experiences [36][39] Question: Feedback on the Protein Platform - The Protein Platform has received positive feedback, with customers appreciating the customization options and perceived value [42][46] Question: Progress of the Green Apron Service model - Management noted that the initial rollout has shown positive results, with ongoing improvements expected as staff and customers adapt to the new service standard [49][51] Question: Impact of store closures on profitability - Management indicated that closures were based on the inability to meet customer experience standards and profitability, with expectations of sales transfer to nearby locations [70][72] Question: Future pricing strategies - The company plans to be strategic with pricing, monitoring value perception while addressing inflationary pressures [80][81]