Starbucks (SBUX) 26 Jul 182018 Q3 Earnings call transcript

Good afternoon. My name is Hector, and I will be your conference operator today. I would like to welcome everyone to Starbucks Coffee Company's Third Quarter Fiscal Year 2018 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. turn Relations. over to Vice Tom like Investor President, would the to call Shaw, I Mr. may your you Shaw, begin conference.

fiscal will Good and Starbucks afternoon, President and our for Chief discuss us and Scott today Today's everyone, and Group Belinda thanks Maw, third for CEO; Roz Operating quarter CFO. President, Kevin Officer; led China; by be joining Brewer, to XXXX. Johnson, discussion Americas results CEO, Wong,

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deliver these strategic we made value energy, scale three we two our to shareholder expectations quarter, against entering on executing capital, to commitments commitments, future. short our the focus at progress resources continue into in and long on increases meaningful shareholders: create the we've our to we To priorities. deliver against had While and fell we measurable the to made sustainable of predictable, growth

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Before Sustainability call sustainability. I quickly over to handing is one the our social around Roz, of touch to want on announcement recent three impact priorities. of our

coffee product in is the Our of support around make direct aspiration sustainable the world. farmers to first agricultural coffee

partners behalf options. our eliminate lids, planet. commitment to In direct are of approach straws farmers, our cups. of and Our agronomists in teams globally along broad packaging have of we material a with innovate also innovated same way, straw the XXXX stores create And plastic our recyclable all on alternative the sustainability in to to of support coffee strawless is by pursuing

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exceeded Moving in billion China-Asia-Pacific. grew XXX in grew basis primarily by $X.X impact due consolidation record the business. margin and market, Japan from to our mid-teens, excluding QX. second increase the revenues points non-GAAP net contribution quarter, from revenues by system to growth CAP of operating income And delivered point fifth $X by China on X% to FX decline straight a stores. Korea, CAP new a point East in revenue XXX billion was Noteworthy comps system a two is global operating despite in that largest XX% for favorability. reaching of X% the driven basis non-GAAP decline in operating margins XX.X%. The a

and margin so was outside opportunities Starbucks longer remains more CAP of presented even down the term food by made CPG inside the prior-year. for opportunity Excluding growth huge both by a exciting slightly and China, Nestlé CAP alliance. service the consolidation, to

and category coffee will EMEA performance to to competition continuing of into both brands operating outpace encouraged income margin K-Cup with We licensing XXX point the was in Channel QX. result Development driven performance improved EMEA. turn non-GAAP headwinds. operating operating solid ground in Let's a had XX.X%, convinced System-wide and roast maturity expansion, given adding further roughly growth from aisle. Starbucks plus to coffee period. EMEA's growth margin category increases the in and reach EMEA On the down basis share non-GAAP strong remain to comp XX% in lead and dollar dollar and to by in portfolio in in stores. in profitability by the at licensed primarily QX, however, meaningful came by growth, with continuing economic in performance as shift in delivered industry and X% comps, of increased flat very expanded the continued the points Development. that face XX% move QX share premium competitive the XXXX. solid a Channel a Channel we strong margin Development's of to share. another the

close of XXXX, consistent guidance, a most I'd we previous highlight like remain few but targets to As fiscal our specifics. out with

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anticipate company and continue XXXX of total in inclusive training. decline tax We incremental a initiatives the investments to the margin reform impact anti-bias full for we're digital operating and year making partners of Americas to in U.S. the and the moderate both our compared law following

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in the result $X.XX that of of the remind the XXXX. points into each you revenue the end We a a could August, U.S. negatively transaction be Nestlé to including we two also on a billion $X.X in and by anti-bias factors portion to transaction with of final the this guidance that estimates EPS full potential impact fiscal this assume EPS number would Nestlé closes after to impact impacted training around or transaction, pending $X.XX expect payment. as Importantly, range XXXX as the would over for treatment which that These points diluted in XXXX. the close QX. the primarily in final FY of partners, result anticipate for I three that $X.XX accounting by driven upfront the as carried of day early EPS

in we anticipate three-year talk Finally, the a about largest layers I system on of Working with G&A efforts our a fuel opportunities is and with use last month. goal and to support, bit consultants, our leading a will of decision-making to savings sales savings reduction introduced us effort for and my year savings we identified want and this XX% investments work, target savings cost-cutting It enable up our to be focus have this X% to within us, future already we remain Roz we growth will XX% of on the speed portion that be a occurring it focused run to high is thoughtful, for the with growth. and plan By the just improving front-end next both opportunities. of improving spans as and loaded to significant rate resulting how we basis. be not fiscal our areas savings somewhat impact on a way operating and These outside background, such organization. exercise. efficiency

for their the to Starbucks Starbucks the and at to of during their the for decision my the world support partnership to appreciative the board Kevin, partners back want recent Starbucks, decision. green I support Q&A, handing their to tenure my Howard will and Before deeply retire. leadership I for thank operator deeply and team always also be seven-year for call wear XXX,XXX over I the appreciative who to the my apron. am in around everyone

of the I'll most to know your on the me. say without I equivocation operator. back thank Over of With call. and your Starbucks past days I to and for can the turn today's lie also call Operator? I've Starbucks you you the engagement for ahead. that, support of years that best come

William Please comes Zackfia question from Sharon first Blair. with your with proceed question. Your

and class versus development on Can the of the outlook XXXX on the perspective units what new on you good look like rest country? the the portions And perspective I afternoon. maybe of as you AUVs a thinking versus they're know I'm might center of kind how XXXX? give of for class I Americas look you country. question mentioned going they're guess Southern or lower on Hi, cost, the maybe but lower of the us forward Any focus also some those the revenues.

have builds, around will of Kevin. question then bit your about little this on store Sharon, We'll talk focused where follow the economics. up the is a part on we're Roz and Scott

so if a mid-America at of from quarterly us. all, and of revenues, Southern bit points our that stores states, first play through of four look we're performance already for new our and seeing just in quite growth that revenue is came you So, configuration

what So seeing with we're portfolio. we're by encouraged our current

increased you are we tell Seattle areas areas business they're areas. at in I with those we putting the areas, but occupancy two have in area. by increased time labor those spends are and in we're cost the like that less Manhattan, forward, in and highly in focusing encouraged that dense Going geographies, we that while those same units will

seeing what from the process. So that so we're we're already already states, by of we're current parts our towards Southern and targeted seeing encouraged to portfolio that so continue performance is middle going America we're the and the

has or to the format into than drive-thru. suburban I five we've Roz gone drive-thrus. more XX% or referenced as We've about seen metro add we've the past areas accelerate four is some AUVs And our format. years, so XX% non-drive-thru even revenue more would XX% towards typical the actually of in over those drive-thru moved more

out weighting the actually So of those drive-thrus and good quite high AUVs profitability. are both really

question your line Ivankoe JPMorgan. the John with of Please proceed question. comes from next with Our

amount there's there's look takes be that was of XXXX amount basis, store system to puts in maybe – revenue, the percentage at really, steer ways right in hoping a hoping beyond us Hi, even point actual if if a of for help, the I forward. an could this of think obviously of going view. and per fiscal terms spend that just could you sales, and you? percentage number the Starbucks lot thank effectiveness as different the of might dollar what of you just and level you. XXXX, of was have dollar potential we fiscal type I efficiency of business Because the of with G&A of kind from about, talk to, maybe in

it's thanks, Yeah, John, Scott.

just me the in We're you. Let middle annual our try of bit the to for range narrow in a literally process. planning

But give So and I fall to try hard let more you range, know back we'll model. to tighten because specifics. the come in it's the in me

we've The what it's we And and to one point just in of last time First Investor XXXX roll December talked all, is system sales. system talked of billion. $XX said about our about it about we forward Day, sales. was

around remarks point three you somewhere rate we that think be that $XX of if comes So, on call said in the billion, a rate my XX% mid-$XX is run XXXX. grow of XX% in over I in of the that basis at revenue, years. We'll what building it And prepared a the to range. you're billion

we'll of in when basis with XXX we'll fall, G&A to the take of points That basis that sales. exit coming the approximately then we XXXX. look XX% a quarter years And point. will forward three XX% as fourth to So XXX peg we'll roll of our rate system of points take get that, into or a way percent out that at – be

things, So opportunities that range as tighten But bit. some should where get quickly into modeling big on up little of allow you there a a exactly think. we some the it lie. the to narrow I allows execute your bit, in specifics that we can is around you how that to Obviously of these

comes line with your question. of Your Bernstein the from next Barclays. proceed Jeff Please with question

were much. very quarter, negative maybe I back for China question on weeks comp. It know broadly. came you X%. modest thank flat like Great, a guided I've it you when to a in you seems about the down just few talking

past the over looking back to you if maybe, it the today. the talk decline seems the more wondering, digits from we where importantly, digits mid-single the to just could quarter. I'm just through are quarters, guess, been high-single I about steady like few So, fairly a it's And trend

are storm quarter. seem that the beyond some it the and So would maybe just like factors there is perfect above fiscal third

might there, talk a make business Just two to you what there's how Thank is cannibalization you bit how you is. perhaps macro maybe just if headwinds be wondering if pushback? you distinguish maybe healthy could as seeing little the as the wondering that those is think versus or you. about assess it Just things broader consumer some China unit sure still between

is Yeah, Jeff, this Kevin.

quarter. talk little I in think we'll what Belinda bit have saw a the about she

within I the to let's think, think give China. with business always of it's the you health go opportunity the of don't in helpful of perspective think brand, quarter, we're health the trends – the – I we but Belinda? an a to into Belinda share

thank hi, question. Jeff, for your you, Okay,

a changing. a are be in-store to strategy. as trend our behaviors delivery third-place through in First This Delivery whole, Starbucks addressing consumer of becoming all, is And it's we'll a lifestyle China. ritual complement

China, as growth Second services, our we is with through shared as we'll agenda our we Day Starbucks that the and Investor competitive our do. in experience Delivery our which innovations landscape address elevated also during well

expand This we again, share stores. do have who need continue tried We culture, we more to our new that from will to we innovate coffee grow coffee. before because and continue comp comes never need to for store market new people to drive this cultivate our market. And and we're with accounts deliver relevant for meaningful developing our And growth. customers comp. coffee greater in to and growth needed share a market. share in growing we coffee experience to XX% But, to of market, and than that long means market the XX% Don't the our Third run. operating will to shared be in expected to coffee an presence our through existing a our in the thing I stores short-term. higher new to level stores. now the from in But than have transfer of to may developing forget of right sales That sure do impact need

track back in I terms will have our that China doubts no So, soon very be comp. on of

So, thank you.

points I is this Yeah, reinforce a key let Kevin. think that are couple – important me Jeff and just of

in – that are fact all, market is we're about XXX The and growth store China in into with is said transactions grew said to I the in enabling the that of but years we expansion. of comments, also engagement new in expanding XXX expansion market cities where XXX we next the reason cities. expand the to its And that in we're cities it is the that deepen growth. is mid-teens cities over is new and only the First that as as new to in China the customers not brand store roughly that it Belinda next And three in in a my phase all we're into critical. because through

are so highlighted those I performing. stores Belinda And think, – our as

about stores in Some them the the – most The stores of the the most in store are world. world, some it the expansion. profitable most profitable is new are we're ones building of and

want that the is right just years. so several because that for strategy be And point reinforce China will for it I next to now and core the

Morgan proceed your question. Stanley. Please question with from John comes next Your with Glass

much. very Thanks

if guidance landed comp the quarter particularly to the this end is where this the in X%, quarter, the of X% guess, I you reading U.S. correctly in X% surprises or fourth which, of low and so, I'm for Your me context

conservative you about business? mentioned really you Is you is just price that's right a overlap? getting your comps tension, is why thought maybe July So mix And you what's that's benefiting number? just reasonable other is can area traffic and the similar improving in now? talk still number? that more Can pricing was, that also June – confident, I talk where or of think is or of much just the you it's In know you it a words, that how was an

then helpful a on start, mix question of we comments of that hand to of as statements on get to I commented over I'll the it. we that the to Yeah, think Roz John, reconfirming and well, it's because into the But the all, Oppenheimer things driving Oppenheimer. that let just I'll first me – bit more at I unfolded the are confuses don't add anticipated, following sort quarter made think the just I issue. intra-quarter trends

lost in So at closed navigate that us last that Well, Philadelphia what the quarter. some had afternoon stores an confidence? situation we've But impact. – all very had in QX, you had back Certainly the delayed and some gaining were the things or that we fact quarter, so the for to this in when of fact we we're and We optimism terms also we so unusual the momentum, our since look gives in an the by of weeks launch deployed momentum, we clearly campaign two that marketing that what that saw quarter. spring/summer we doing. and gives we then some us

and digital XX% are registered our with how these of us that this some out Second, of and with gives into learning now added to confidence look we XX.X we've million grown customer with the by million, active members we beverage our as engage combined rewards base X engagement to has innovation That forward to pipeline customers how them. digitally figuring Look, quarter. drive grown we've dramatically. more

was maybe question and and pricing driving there things are pricing. and hand – Roz And talk that let Matt a Roz? on you some on to on the a Roz, attach bit to me I'll that about Let over little of ticket comment there. But,

our comp to me little let flavor give a sure, more Yeah, bit performance.

two start point from I'll from if that another and So you first beverage food. coming got of off coming down break we've of points our with, comp, all,

encouraged in seeing. of we're So terms we're what

our seeing we most our still impression you in in then day-part, the quarter, ticket. our and that so and core new as growth we're food, our growing And of of every the beverages, portfolio We're is tell that our talked South. in placing in our in from seeing Frappuccino in of that coffee breakfast except morning. categories Refreshers, the stores America we're and seeing so sandwiches food nice innovative up we're middle attachment such morning still our core about we're both category. happening, just performance products XX% that's I'll grew new peak, on lastly growing Drafts our of strong a to All We're where seeing for we're important and have these markets

So track. encouragement we're right that that gives on us the

the Just growth. beverage transactions moving through consistent, occasion while a ran afternoons business. spend about of our done need get actually in isolation the It's our campaign talked a new absolutely we've with of and focused afternoon beginning focused day-part, we afternoon on when still those teas and transactions the part largest to the The that ongoing. Kevin – refreshers. on spring through is focus is the soft and media the our of And in it we a is marketing

we're we're to right going this maintain plans doing encouraged seeing that we're continue from we're because what So our to work now.

proceed Please Your Palmer next David from question with question. with Capital comes your Markets. RBC

Thanks, good I... evening.

you're you're you Can over? up. start David, David, breaking breaking up.

wanted growth takes I to to that U.S. off given the the business. like table Yes. seeing It now a that you're ask you issue. looks a fact that about user has the about the particular afternoon question beverage And contribution resume, been digital as and problem. Could talk growth that? an

and how this innovation other, is, a a guess a pipeline tea? or And having question U.S. has you about you not feel beverage Teavana the much innovation been problem shake do I slowdown So at the point? the versus think how Thanks. Cold comp Brew do beverage

to to then the sort take a to innovation about response and I'll that, pipeline. it Roz first beverage me of the bit David, talk over hand little Let

And we softness highlighted we've from for the First area are The evenings comp PM that the the X:XX in growing has on morning Starbucks most the that and that been on. of afternoon transactions morning then We're growing we've day-part. all, day-part. important in is morning day-part had day-part. X:XX from

look day-part And and this, had blended. I look of the positive Refreshers, offsetting the portfolio when very, the we that that's core in they're Espresso, fact all So, are very, a at Number very platforms, metric. beverage the those at I Tea the two, look when and softness growing Coffee, is morning growing. at we've

the of Frappuccinos. because So quarter this is to all been you around intersect of of and blended issue amplified this quarter in sudden, has afternoons a sort start the

together sort explained. of I put that you that think so of and And much is

the we mentioned, as for afternoon beverages Roz about we're made, feeling driving the that that. around and cold have campaign that Now, good the we're think afternoon I

me to bit Roz Let of about the it over talk innovation. to a hand little pipeline

Sure.

Starbucks the pretty business. about in terms feel beverage innovation velocity of actually we So good of at the

of to and we're in a strong directly First that Cold shift all, seeing space. playing we're

our of to in Our with cold newness, mix up it terms on XX% mix we focused if at you And has our cold beverages. is in of look our everything been beverage.

even year, the to addition customers Blonde our espresso. of cold of In espresso with Blonde their the our addition we're customize at beginning seeing beverages the

So foam blended we've customized and Premium moving and but on and of in with only those beverages for this pleased getting food. coffee then we Frappuccino, three refreshers innovation and the innovation how us. quarter, with in on teas. those cold introduced then focusing we're three the And also on core not with we're momentum in are innovation And

this quarter. Vide Sous we bite, new what a when of then kind innovation And that food in Egg encouraged Bite doing with beverage we're our so egg needs see our with we all We're are. And customer will introduced Cold you we're and their what there. information isolate that the Brew that acceleration resonating in digital, is is with One thing gathering I the what with we're millennials. matching male really combine

our the wrap So, it business. coffee directly towards sends and continuing arms core business innovation, and our our around in when a cold innovate us platform our for in consumer-driven growth we needs to

beverage innovation pretty our and feel actually pipeline. we So about good lineup the

Your your Bernstein. question. next question comes Please with from with Sara proceed Senatore

just to Hi, versus and new curious what management. rates? licensed, talking in piece, a steep assume it the – portfolio decide on of how maturity U.S. that and you're to thank would And quick there's then going evaluate growth mix the understand the reference I'm I they're with you is have China. store seeing cannibalization, implication a China or you forward. – also for quickly testing that you're hurdle – China. perhaps you. A more know on you're question follow-up approach what more about some whether about said, might Is their the – to U.S. pretty that unit In company-operated meeting curve a I but growth trying might Just stores then

you seeing comp of offsetting any So aren't that? lift from kind

talk Belinda first a have the unit let's Roz Sara, optimizing – U.S. take on about store bit have We'll China. growth will little portfolio your then question and and

Roz? So,

Yeah, on clarify so let point me store growth. the just

second our trade significant what terms you I number that, is So, licensed of closely piece stores about the areas we're where of on Sara, very the formats tell still place a adding at that talks both looking doing And managing there's we units. we that And stores. our will to company-owned and a place. we're then in

So I at think forward complement an you're where – our that cafe. going we're also portfolio of approaching But XX% unit a is complement exactly those looking now, actually XX% express can drive-thru. drive-thrus aware or

Southeast. where smart focus we and we're our that, of the geography middle So very place really units looking being surgically in the with at about America the and

not that And we so slowing you'll play our And in concentrated areas. coming in those are out forward. see growth stores our

want China? to a talk bit about Belinda, do little you

you the the maturing. Yes. is Sara, China I hi, being mean assume specialty market at This here. case not mature or Belinda all. coffee in

in XXX culture cups we're Even and the in on to a X cities Beijing Shanghai. and shared hard like we think X.X before U.S. working coffee tier cup the in stats then cultivate I China. And here.

and what and love, job sharing – make people sure of which middle more our to So and room plenty coffee grow. And our to class the passion. is people more more we more with is try to there's up-and-coming get

So there's plenty room to grow. of

And base new we've you also, perform got we on you're approach that the they through the month. discussion we at first growth. talking disciplined a and track we as very very to if the the to how our maturity year once about look add Sara, single closely stores enter that review when and them comp new every open China around then where curve, this store Hey, just the is John, stores, new

the the they payback As comp the as we at currently comp within base. base enter a very comp of the level And stores enter store is they stores the are consistent new shared the historical year of base, previously, in sitting of the that opening. a

footprint that out that on the And healthy the exceed are the fact to of overall good very that store that profitability maturity at feel all to And about very, store hasn't all we build shifted really curve returns this our those very feel standpoint. about whole as day, an performance of based revenue is growth grew right continues importance the Last culture. stores, future. historical and much store the the optimism Kevin end So seed is us the very transactions the clearly shared, store we fact very We new we continuing as it of level from develop expectations. about we good in new That's at gives this portfolio healthy. well about We and for important. the XX%. as talk mid-teens. comp. the And the But coffee it as market quarter grew the in now,

into our existing to customers. to our grow frequency as We continue overall transactions stores of the as marketplace, continuing customers in the elevate new well attracting

break social members, a other down on have put per-store on on we I on and X.X one we're that. work very for U.S. we in couple the market would we've fact to good that we're strategy for strong And social building And for so belief very very that that's MSR when delivery and with And basis, see then that basis that, about the to is gifting, digital the we the growth plans you very the And built then China you optimistic on feel that us Alipay top for add nearly we growth forward. with a we still double we done just million WeChat and robust long we've very per-store point And in a of work active what many now gifting, in you doing digital are that's and what ecosystem. runway have why the going years that have come. with the China

next question from DiFrisco question. Guggenheim with Securities. Your comes your with Matthew proceed Please

U.S. and looking targeting you. middle I more is at just question the with the of two-pronged America. guess, here, My expansion Thank sort

What's us espresso didn't closed of and with customer? that the identifying seem value customer is last are more changed? And then, means value your whatever you're I drinking, the each might for growth it at portion of My stock that a and How really of who the you mentioned what stores, is large Rewards does when the not the have guess the guess those that also restaurant the of as some for tried looking brand weren't all the at down of some Howard covered companies individual think who I resonate of the driving the Starbucks comp, value, respectively. they about is that the areas that was guys equation populate to have you one middle word you densely I stores. brand to faster few and seen well customer, like the those addressing hasn't when country

of changed stores this is first middle performance our all, share middle start Well, terms because perspective and and of AUVs to in country. in other espresso But of higher others America? higher Matthew, and performing Americans America at in any like profitability beverages those the Kevin I'll part store Yeah, apparently a are than and add. the get coffee what's some

years look really store, technology go at us have inform stores. number to capita we the doing great build the demographics we're using the we're help where what And outlined this at I new of the – a that then, from to now. that, and last know is back stores not using of working We stores. We've We're thing. this been performance as don't these analytics in couple I per was for since seeing areas. it's look worked. but those doing And areas to at and we're using it's in those experiment so And the Oppenheimer, in

on the performance well. South, and I the been So America we're it's store new we've – that think fact the by throughout performing middle those that just building proven getting stores they're

Starbucks, experience, And all platforms growing. that. handcrafted for part, about That morning then, differentiate the coffee, by beverage tea, core of the a our premium just the of growing. terms we premium is is think other that custom is we beverages refreshers why around we the doing day-part growing, are coffee, strong growing. morning and good proposition I for we that think value, in scale. are core differentiate differentiators a growing about day-part espresso, keeps in and we When value we're The customers. at And day-part feel our

we some that in Roz we've and we've working had address. seen mentioned, – platform we've to afternoon the the softness had As in blended softness afternoon, day-part in been

need that's I our and a Mobile drive-thrus with unlocked think, of we and stores only as that I place I not with experience this then but highlighted in Order some third in we really the community. create balancing around around way have think consumer Pay, trends, the of state the convenience, our

on And day-part, give those at platform, decade and the last we store in so that the we've confidence what our if in learned the I think those things we've made both that formats, morning just look the those us the absolutely performance investments in beverage over in path. we're of geographies, right

our when when America that and at the numbers. add Matt, is said the the talked piece would And bigger Roz just middle I look growth South. And across actually I growth, of about store she the South

those Arizona, Texas, the core with completely cold well, move we're performance the the the growth. markets and It's It's is iced which just towards doing seeing Southeast, a Southern strong strategy talking are lot with the So middle really And you're drive-thru as drive-thru. in great we Florida. of country, California, addition coffees. in to to of completely beverages suburban core markets have. about These that part to and

And Southern talk part would swath broaden to broad definitely America middle I the U.S. of the about so the just

proceed with McGinley Matt from question. comes Please question with Evercore ISI. last The your

the then to Kind you a you general in fourth have margin year earlier slightly a in base. the not Did stores and China the in narrow on? in comment you comp did the what of saw of noted when year? more clarification base, the year as same were experienced the the – will? tandem, that in point about the already said, if a did of I in you that comp And that trends guidance below the stores all a by quarter quick gap a was – commentary, the relative move are about you're earlier were you went you Was in China, were stores what question – comp you. that that in that slowdown in base Thank or slight that the decline July, then In they about fourth China. Or in in on the Belinda, JV driven kind on that question noted of year-over-year. experiencing not the – quarter

my on in anything indicating the margin Yeah, wasn't July. comment

was and guidance the month and in with gave investments. the that obviously which but consistent started overall probably progress we the good margin quarter. just good to if when we the both out around be fourth quarter roughly we profitability flat, going the year And and make simply really next lower anti-bias initial training last it's quite guidance. year-over-year, think this the would had to fourth flat third I hoped get we'll just quarter we're progress saying our not I'm made you take And quarter, tax we

chewing to was part? second the that want Belinda, do I you just handle sort So And up. of

on. over operated. somewhat East that with that That expectations. to some East in store we're as to China Mainland of FY below business line Matt. significant After the two said, expect it's progressing P&L I'm pieces continues rest Hi, to you company report our just due past region the is comp is has in performances these in few the in China of pace time we fully-owned happy Sure. years openings been comps But posting and China, the China, of and converge. the over other XXXX, on integration East and the executing opportunities market track

Mr. I was the will That call to closing over turn today. last question Shaw for now remarks. our

call for Thursday, And, planning for tentatively XXXX has your been note fourth thanks. X. Yeah, scheduled November please our quarter conference purposes,

seeing Wednesday, XXXX to you and Thanks many December our XX in addition, New look forward at In a Day great evening. have Investor of we on York. biennial again

quarter fiscal third Company Coffee call. Starbucks year concludes XXXX This conference

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