President Biden: "The pandemic is over" | 60 Minutes, 5 things to know about new Starbucks CEO Laxman Narasimhan, Starbucks illegally blocked raises for union workers, labor board says, Starbucks union organizer Jaz Brisack resigns, saying she was forced her out. And so net-net, we're highly concerned and humbled by the environment. The Census had a series break in 2018. The rollouts for these three items will be completed by fiscal year '23 for our company-operated stores. And as a complement to doubling our partner training hours, as Howard noted, we've reintroduced our iconic Black Apron credentialing program, and nearly 5,000 partners have already earned their apron and continue in the program. Brady? It was just 50 days ago that we laid out our reinvention agenda that involve five major strategic shifts. So the question is really about, you just mentioned the premiumization and customization and how that seems to be more common with cold beverages. A former item on the hidden menu at Starbucks, the Medicine Ball Tea was also referred to as the Cold Buster. And we also mapped that engagement to the activity that we're launching in our stores, so that we can understand the connections, if there are pain points or if there are opportunities, and continue to check and adjust and to design around those learnings looking forward. Thank you for the question. We will transition out of temporary programs, return to our standard policies and invest in long-term well-being to further support our partners. The younger you go, the colder the beverage. I mean notably, over the last quarter, we did see some improvement during peak in our drive-through business in those window times, which is a metric that we continually keep an eye on and really orient our focus in our retail stores, with leaders observing and coaching during that daypart specifically. Sara Senatore -- Bank of America Merrill Lynch -- Analyst. Starbucks is the No. Yeah, yeah. And in particular, what is attracting them to the brand compared to your existing base? Also available November 3, the festive cup collection includes the designs Gift-Wrapped Magic, Frosted Sparkle, Ornament Wonder, and Cozy Evergreen. And I'll give it to Brady, just to follow up on your question as well. Your next question comes from John Ivankoe with J.P. Morgan. And so there is a tremendous level of loyalty, friendship that we have well beyond the business relationship. This remedy for the common cold has the following ingredients: Green tea infused with citrus mint and jade, peach herbal tea for tranquility, hot water, steamed lemonade, and a touch of honey for sweetness. We continue to closely monitor guidance from local and national health authorities and will update our procedures as needed to adhere to the most effective health and safety standards. But our strong belief in China is based on our success in the country and our commitment to playing the long game. [Operator instructions] I would now turn the call over to Tiffany Willis, vice president of investor relations. November 8th, 2022. labor. The way we've considered the recovery in China is really, as we said in the beginning, based on mobility. And their loyalty to Starbucks has been quite significant and predictable. And the secondary effect, to answer your question about top line growth, is it creates more capacity that allows us to capture that incremental demand that sometimes is challenged in the current operating environment. For most of the campaign, Seattle has topped the list with the most unionized Starbucks stores. Even if its not exactly what the doctor prescribed, the Medicine Ball does give a few ideas that can aid a cold, particularly if you have a minor sore throat. In the event that you are unlucky enough to get a sore throat or sinus infection, the Coldbuster, popularly known as The Medicine Ball, will provide relief. Stock Market Sell-Off: Is Amazon Stock a Buy? Sick days are based off an hourly rate of earning sick hours. Moving on to the second building block, new store growth. I guess that feels like it's been a tailwind for a little while now. A few of these beverages are excellent for warding off a cold because they include all-natural components that collaborate well with your body to lessen the likelihood of becoming ill. We have remained committed to the critical development opportunities of our people. And yet, as we often say, we're pleased but not satisfied. This year marks the 25th anniversary of Starbucks holiday cups, which were first introduced in 1997. I wanted to ask a question on the differences that you're seeing in terms of customer behavior or demographic about incremental unique customers that you're seeing across your stores. The Starbucks Union won 82 elections in June, its best month so far. With the resurgence has come renewed lockdowns and mobility restrictions pursuant to China's strict zero-COVID policy, including in many cities in which we operate, meaningfully reducing traffic in our stores. Thank you. Sure. The COVID-19 program started in 2020, with the retailer telling employees that they could receive up to two weeks of "catastrophe" pay if they were diagnosed with the illness or were exposed to it and needed to self-isolate. Certainly, there's -- as we've indicated today, it's nonlinear, but that's how our actual assumptions for recovery are based, which is part of our guidance. And we're looking at a number of leading brands. In fiscal 2022, we drove meaningful growth in our global customer base. And then, secondly, what are the frequency-driving opportunities that you have for some of the new customers? And we know that correlation is real, and it's amplified and you can see it every day in action. Starbucks announced Wednesday it's rolling out its holiday drink menu Thursday. Price as of November 9, 2022, 4:00 p.m. And despite its global scale and growth, we have significant untapped opportunities to grow our Rewards program in a very unique way. And why is that important? Longer-term, powered by our partners' insights, we have a very robust agenda and improvement plan powered by a new architecture and vision of the partner experience. Sure. As long as there is a doctors note to excuse any work missed due to sick days, the absences are typically forgiven. Despite the short-term COVID disruptions, as we shared at Investor Day, we remain laser-focused on executing our China growth agenda with great discipline and confidence, right? That really demonstrates the partner investments that we have made over the past years are really paying off. This represents growth of 16% year over year and 55% of our U.S. company-operated revenue in the quarter, up nearly 4% from prior year, representing the highest-ever percent of tender. While the macro environment may have uncertainty, our performance is once again demonstrating the strength and resilience of our brand and our business. And over time, this will translate into an even more partner-centric system in the stores, affirm our reputation as a frontline talent career launchpad and improve retention rates. When fully rolled out, Starbucks' reinvention, co-created in partnership with our partners across the country, will touch and elevate every aspect of our Starbucks partner, customer and store experiences. Representative examples of improvements include: a new incentivized savings program in partnership with Fidelity, designed to help partners in case of unplanned financial challenges; a new student loan debt program to empower partners looking to find the best ways to address their college debt management obligations; an increase in sick time accrual ratios for our partners; an updated family expansion reimbursement program, aimed to assist partners with the cost of growing their families through adoption and the like. One, cold has certainly surprised us all at Starbucks. We have completed the deployment of Starbucks Cold Brewer and have rolled out the Mastrena 2 espresso machine and new warming ovens to nearly 95% and 72%, respectively, of our stores across the U.S. The NLRB had conducted 322 such elections, with the union winning 260 of them, which is an 81 percent win rate. We recently opened our 20th store in Verona to record crowds, with Rome and Naples fast following in 2023. It's a warm and soothing drink that will prevent you from feeling under the weather. Adding these elections and workers to the totals above brings the current likely size of the Starbucks Union to 7,175 workers across 275 Starbucks locations. The menu brings back classic beverages, including the Peppermint Mocha, the Caramel Brule Follow our standard Partner & Family Sick Time policy when using sick time. The strength of the brand is further illustrated by the success of our iconic pumpkin spice platform, which grew 17% year over year and continues to resonate with customers who love the classic Pumpkin Spice Latte, as well as newer additions, such as the Pumpkin Cream Cold Foam modifier. We are encouraged by the early signs of recovery we saw in China in Q4, where innovation, increased customer physical and digital engagement with the Starbucks brand and the relaxing of COVID restrictions, drove solid positive sales momentum and sequential quarterly improvement. Blended and Scented Teas-the Differences and Similarities Between Them, Brewing Tea Small Details That Can Make a Big Difference, Chai Tea The Popular Sweet, Spicy Specialty Tea From India, Teas of the U.S. South Carolina Quality Teas From a Familiar Brand, The History of Tea in the U.S. From 1772 to Present, Teas of the UK-Tea Growing Comes Home To England on the Regal Tregothnan Estate, The Teas of South Korea-Coming Back From Near Total Devastation, Zealongs A New Breed of Oolong Teas From New Zealand, The Teas of Malaysia A Small Start Begets Huge Rewards. You may place an order for the Starbucks Medicine Ball either through the drive-thru or in the actual Starbucks location. In the U.S., 51% of our customer base is now Gen Z and Millennial. And the board leadership team and I are all deeply invested in his success. In other words, its not exactly what the doctor ordered. The ingredients for the dish are as follows: boiling water, lemonade that has been steamed, one bag of Teavanas jade citrus mint tea, another bag of their peach tranquillity tea, and one packet of honey. Finally, based on the current environment, we expect foreign currency translation to have approximate 4 percentage point unfavorable impact on fiscal 2023 earnings growth. Operator? As we shared during our Investor Day, we also expect to return approximately $20 billion to shareholders in the next three years between dividends and share buybacks. And I think around the world, we continue to attract both young customers and diverse customers. November 09, 2022 11:53 AM ET. Through Reward Together, we will engage and reward members of both brands with new benefits and experiences that will make our Rewards program even more valuable, drive membership and increase customer lifetime value. Today, Starbucks serves over 100 million customer occasions from our retail stores around the world and across all channels, delivers over 400 million customer coffee occasions globally every week. Our growing base of new U.S. customers and Starbucks Rewards members, combined with very strong customer response to our innovative hot and cold beverage lineup to deliver the highest net sales week in our history in September. And so that is the fabric that binds the lens of brand experience as measured by the customer and realized experience as measured by the partner in the store. Q4 Consolidated Net Revenues Up 3%; Up 11% on a 13-week basis to a Record $8.4 Billion Q4 Comparable Store Sales Up 7% Globally; Up 11% in the U.S. and Double Digits Internationally, excluding China Q4 GAAP EPS $0.76; Non-GAAP EPS of $0.81 Driven by Strong September Performance; Reinvention Materializing China Surpasses 6,000 Stores, Pushing 7 sick days. Thanks. GAAP results in fourth quarter fiscal year 2022 include several items related to strategic actions, including restructuring and impairment charges, transaction and integration costs and other items. 2022 CBS Interactive Inc. All Rights Reserved. Through our investments, we're giving our partners more time to focus on coffee craft and connect with customers, enabling them to continue delivering experiential convenience in a way that only Starbucks can. Yeah. We expect to begin rolling out Clover Vertica brewer later in this fiscal year, with our broader Siren System innovations fast following in fiscal year 2024. Thank you, Howard. Paid Holidays. You've talked about some equipment upgrades. Currently, it is shown on the menu under the name Honey Citrus Mint Tea. I cannot be more confident that Laxman is the right CEO at the right time for Starbucks. So we have a very advanced, what we call, listening capability, where we are constantly sensing how our partners are doing, those who proudly wear the Green Aprons in the store. So we're very humbled and -- but well-positioned and excited to capture the future growth opportunities. Great. North America's operating margin was 19% in Q4, contracting 270 basis points from the prior year, primarily due to investments in growth in labor, including enhanced store partner wages and new partner training, as well as inflationary headwinds, partially offset by pricing and sales leverage. I think cold is in its early stages in terms of what's coming. And those who are closest to the frontline, serving our customers, have a deep and rich understanding of what's needed, and we need to enable them to be able to serve. That's right. On the average month between April and September, the union filed 43 ULP charges, more than one per day. Fiscal 2023 non-GAAP EPS growth is expected to be at the low end of the long-term range of 15% to 20% as the benefits of the reinvention investments will take time to amplify. And we expect to see further benefit as we extend the rollout for handheld POS into fiscal year '24. And then I think we look at the promotional plan that we have for the balance of the year and we look back on our history in terms of the beverages that have succeeded, we look back on the short-term history in terms of what beverages have really been home runs, and I can honestly say we sat through a beverage lineup of innovation a few weeks back and we really had to cull the amount of beverages because we knew we couldn't handle it because there were just too many that we felt so good about. Moving on to International. SEATTLE-- (BUSINESS WIRE)-- Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal first quarter ended January 2, 2022. Starbucks Rewards members drove a record 55% of tender in our U.S. company-operated stores in Q4. So thank you. The partner experience as the core of the operating model of Starbucks is designed to drive retention, improve connection scores, both to the partner and customer. Yeah. The overall contraction was partially offset by pricing in North America and sales leverage across markets outside of China. Save my name, email, and website in this browser for the next time I comment. We also focused on our fast-growing omnichannel business, and that continued to gain great momentum. We fully embrace that our partners are the most critical component to our longer-term performance, and we need to be even better at addressing their needs. This increase, driven by incremental debt issuances in fiscal 2022 and fiscal 2023 as outlined in our capital allocation strategy. Once again, our convenience channels, drive-through, Mobile Order & Pay and delivery drove 72% of our total sales volume. To make the world smarter, happier, and richer. Thank you very much. Obtaining the right mix and number of hours is essential to a thriving partner experience at Starbucks, and we aim to provide desired hours with flexibility and predictability. Finally, as part of this new phase of reinvention, we continue to lean into our centralized project management office to drive better integration among our initiatives and more fully capture the synergies across our store and customer innovations. This double-digit revenue growth in constant currencies was driven by sustained strength in all major markets outside of China, as well as an 8% increase in total store count over the past 12 months. But now Portland and Pittsburgh have pulled ahead of Seattle. Your next question comes from Jeffrey Bernstein with Barclays. So the two part question, number one, thinking about how you talk to survey the employees and customers, has the process changed for either? These items are excluded from our non-GAAP results. Thank you. Yeah. The growth was partially offset by a 5% decline in comparable store sales as the impacts of COVID continued in China. Delish editors handpick every product we feature. So can you talk about the frequency opportunity that you have, I mean, I guess, in two parts? Our top-selling beverage is actually a solo espresso, validating the quality of our coffee and the relevance of Starbucks customer experience that has defined us since Starbucks' founding in 1971. This funding source allows us to do our work without being compromised by the corporate money other think tanks rely on. Font Size: Former President Donald Trump celebrated the outcome of the 2022 midterms late Tuesday night, posting that it was a great And considering the quarterly EPS shape, we expect it to mirror the quarterly shape of operating margin, which will also have a meaningful step-up in the second half of the fiscal year. And with that, allow me to turn the call over to Howard. For the year, revenues grew 9% year over year to $6.9 billion, also on a constant currency basis. AJ+ (@ajplus) September 19, 2022. Thank you for the question. And in the face of a slowing macro and potential recession, it seems like your product will be more discretionary. As Howard discussed, our China market continued its recovery in Q4, navigating through reoccurring COVID outbreaks and turbulent consumer mobility. I will now provide segment highlights for Q4. And thirdly, we will go smarter. Belinda, do you have any -- sorry. I had two questions on the Rewards Together program. Good afternoon. The Starbucks Union led a spike in union election filings earlier this year. Today's discussion will be led by Howard Schultz, interim chief executive officer; Frank Britt, executive vice president, chief strategy and transformation officer; Sara Trilling, executive vice president and president of Starbucks North America; and Rachel Ruggeri, executive vice president and CFO. Once again, our success is earned through our more than 450,000 Green Apron partners working across the globe to elevate the Starbucks experience each and every day. I'm sorry. As part of our reinvention and as we shared at our September Investor Day, we're investing in equipment to innovate for an improved partner and customer experience. Although election filings remain elevated relative to 2021, the decline in both Starbucks and non-Starbucks election filings has pushed the election-filing trend back down. If you'd like a snack to go with your holiday drink, there is a new addition that's sure to pair perfectly with your sip of choice. Calculated by Time-Weighted Return since 2002. Globally, we expect solid margin expansion in fiscal year 2023. I just want to start out with just an acknowledgment. In terms of the data, we're really sticking with our continued focus on using data to make the experience better but being very thoughtful and disciplined about the data that we capture, but using it to make the experience better and inform our business. November 2, 2022. More than 1,000 partners have participated in our testing and are providing feedback for our launch planned for Q2. But with that said, the focus, I guess, we're hearing is more looking six to 12 months out, with an even larger system. And we try to be very precise about the things we're responding to base on the first principle that we've espoused now for quite a while, which is this idea that we should be creating the new Starbucks with partners and for partners. And increasingly, customization has enabled that in our stores. For China, we're expecting outsized comp in fiscal year 2023 as we lap the severity of the lockdowns in the market. All rights reserved. This is an incredibly exciting time to lead our North America business. Yes, Now Is a Good Time to Buy Stocks: 3 You Can Start With, Cumulative Growth of a $10,000 Investment in Stock Advisor. And obviously, that's very admirable to be able to talk about that, just having the breadth of the customer base. In addition, operating margin was impacted by inflationary headwinds and deleverage related to COVID restrictions in China. For non-GAAP financial measures and year-on-year metrics mentioned in today's call, please refer to the earnings release and our website at investor.starbucks.com to find reconciliations of those non-GAAP measures to their corresponding GAAP measures and 53-week and 52-week metrics. 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