Yes, John. Q3 Fiscal 2021 Starbucks Earnings Conference Call (tentative) July 27, 2021 02:00 PM PT. As digital adoption accelerates in China, we continue to innovate in ways that deepen customer relationships and extend the reach of the Starbucks experience across a variety of digital platforms and ecosystem. Despite the increase in … So this program is just to North America at this time, and there is a different program that we use in China. Returns as of 12/20/2020. I think the brand is strong. The lines and the amount of time the customer wait in line in drive-thru to get their Starbucks. I know that the rewards is a little bit less frequent, I think than the regular rewards program. And finally, customer usage of mobile ordering increased 22% of total transactions, up six percentage points from a year ago. It's built trust in our Starbucks partners that we're always going to do the right thing. I was just curious, basically what the -- why there was sort of better than expected flow through considering how much of it was a function of discretionary investments? And so that will come forward quicker than planned. Hi. First of all, I'll start with your second question, China. Although this is generally in line with our previous guidance and now reflects both a new tailwind and the new headwind, the new tailwind is the temporary VAT exemption, which I mentioned earlier, benefiting China's fourth quarter comp sales growth by about four percentage points. Thank you. We do expect margins will improve gradually as we move through the fourth quarter and into next year. Please proceed with your question. We believe that customers are embracing plant-based choices because they are good, good. And so that's why I think we saw such a dramatic increase in the number of app downloads and customers that joined the rewards program because that is the safest way to order. Moving to Channel Development. And the new loyalty program again is another way for us to have a new customer base attached to an app that we can speak to frequently and bring them into the store and increase frequency. Hi. Through a combination of new store operating protocols and service channels, we were able to amplify a number of contactless experiences for our customers, including drive-thru, entryway pickup with mobile order and pay and delivery. Thank you for your time and attention today and for your ongoing support. But based on the experience we've gained to-date, based on how well we know our brand and how consumers are responding to our brand, based on the strength of our rewards program and our digital platform, we are building operating plans for next year that presume the levels of sales and profit recovery that I mentioned. And the data that we see on customer response is spot on. We're pleased overall with the progress we've seen to-date. So I wanted to follow-up on Roz's comments about the pay-as-you-go feature for Starbucks Rewards. They successfully have done that Beijing. Each of these Starbucks Pickup stores will ideally be located within a three minute to five minute walk from a traditional Starbucks store, giving customers the flexibility to enjoy their beverage in our store or on-the-go. Currently, with modified operations and limited cafe seating in nearly 40% of our stores as well as 4% of the portfolio remaining closed, we estimate that our fiscal July comparable store sales for U.S. company-operated locations will be approximately minus 14%, a sequential improvement from the minus 19% that we delivered in June even as we dialed back some of our U.S. operations in response to some regional COVID-19 flare-ups. This is about building trust with our customers and then positioning Starbucks for long-term sustainable growth. We also expect Americas and U.S. comparable store sales to be down 12% to 17% for Q4 and for fiscal 2020. In terms of recession, I'll leave the predictions of economic growth to the economists. There is typically cars lined up and often times out into the street. Roz? Market data powered by FactSet and Web Financial Group. Moving on to our outlook for Q4 and fiscal 2020, starting with the metric that, in our view, defines recovery for our retail business comparable store sales growth. So it will do both of those things. Today, we have an industry-leading digital platform and a rewards program that didn't exist back in 2008, 2009. Jeffrey, this is Kevin. And with new proprietary data-driven decision tools that monitor public health conditions, government guidelines, customer preferences and partner sentiment in real-time, we were able to gradually and safely reopen a select number of our U.S. stores for limited seating experiences, expanding to nearly 30% of our U.S. company-operated stores by the end of the quarter. One of your bigger peers today talked about having sort of entering the second half of this year with -- the calendar year with a war chest for marketing dollar spend. Please proceed with your question. We now expect GAAP EPS in Q4 of $0.06 to $0.21 and non-GAAP EPS of $0.18 to $0.33. With health and well being top of mind, we monitored trends and quickly adapted to support our partners and serve our customers safely and responsibly. The considerable investments we have made in our partners and other stakeholders, which honor our company mission and values combined with evolving our store portfolio, leave us as confident as ever in a unique strength and appeal of our brand and position us to unlock the full potential of Starbucks. Fueled by these new digital initiatives, we have seen strong sequential growth in active rewards members. And that's where the government stimulus program benefits kicked in on helping to offset a portion of that. I will now turn the call over to Durga Doraisamy, Vice President of Investor Relations. The next question comes from the line of John Glass with Morgan Stanley. And that's an important part of competitive advantage and gives us more resilience today compared to 10 years ago. In May, we launched a new WeChat Mini program with new functionality for WeChat users, including Starbucks Delivers. They make a Starbucks run and they buy for the whole family or they're buying more group sort of orders. Please proceed with your question. This represented about 85% of our total investments for the quarter. We are accelerating efforts to expand these offerings for our customers. I mean, is it a customer acquisition tool? But we'll come back to you as this thing grows. And yet at the same time, we stayed true to the principles that we outlined, which is prioritize the health and well being of our Starbucks partners, the customers we serve, to also support government, local health officials as they work to contain the spread of the virus, and third is to just show up in a positive and responsible way in every community we serve. Add to calendar. And for that, I am grateful. Second, we supported our international licensees who are our partners in driving long-term growth globally by temporarily extending more flexible development terms and royalty relief. For the quarter, Starbucks reported global revenue of $4.2 billion, down 38% from the prior year. Why is this important? You've seen it in our work with our Happy Hour, our Double-Star Days and then the initiation of our summer time beverages, and then the discussion around our plant-based menu. So it's a very preliminary perspective. Anything more there -- metrics to share or just kind of how you're thinking about that customer dynamics? Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information. Starbucks opened 130 net new locations globally, despite the pandemic. And that was clearly to provide a safe environment for our partners and as well as the contactless experience for us to handcraft beverages and food items for our customers. We remain committed to doing so as we adapt the store portfolio to cater to evolving patterns of consumer behavior, including on-the-go consumption, mobile order and pickup, drive through and contactless pickup and delivery in accordance with our multi-year strategy, which has been further validated by the unfortunate dynamics created by COVID-19. And then, Pat, why don't you take the back half of this question on G&A and how that all comes together on the P&L. Please proceed with your question. While the recent flare-ups of COVID-19 in several parts of the U.S. underscore the persistent uncertainty in our operating environment, we expect continued improvement in our U.S. business in Q4, bolstered by the focused actions that Kevin described in relation to our contactless customer experience, digital capabilities and beverage innovation. Sara Senatore -- Sanford C Bernstein & Co., LLC -- Analyst. During Q3, Starbucks (NASDAQ: SBUX) brought in sales totaling $4.22 billion.However, earnings decreased 284.1%, resulting in a loss of $772.30 million. And I just want to take an opportunity to thank all of you, our stakeholders, for your support and we look forward to the continued dialog. The growth was driven by strong packaged coffee and single serve product sales, offsetting the adverse impact of COVID-19 on the segment's foodservice business. Thank you, Kevin, and good afternoon, everyone. And I think that bodes well for the innovation that we've been driving and announcing around our plant-based offerings. Roz, why don't you go ahead and take both of those questions if you could? As Kevin shared, we are delighted with the performance of all our operating segments, driving a strong finish to our fiscal 2020. And second, a prolonged slowdown in international and domestic travel, impacting Starbucks locations at China's airports and tourist venues. And so you may have heard the announcement around our new pay-as-you-go plan. They're attaching more food. And I think we're well positioned to navigate anything that might come our way. In addition to accelerating our store transformation strategy, we are creating new capabilities that expand digital customer engagement. We're serving customers. Also contributing to the decline were lower product sales to our licensees as a result of lost sales related to the COVID-19 outbreak as well as temporary royalty relief that we granted our international licensees. And can you help us think about where that has the greatest impact? We're also looking at things like, for instance, with curbside, we're trying to bring the lobby to door side. The conference call will be webcast, including closed captioning, and can be accessed on the company’s … I will now turn the call over to Kevin Johnson. Starbucks also narrowed its outlook for U.S. same-store sales for the remainder of the fiscal year. COVID-19 Impacts Expected to Moderate Meaningfully in Q4 as Recovery Continues. That's the experience in our stores and these different channels we're talking about. And we're accelerating the strategic initiatives that further differentiate Starbucks for the future. And every step of the way we supported our global license partners in markets around the world. But I am curious how you think about this potential longer term shift in work from home for many consumers? Andrew, thanks for the question. And in the process, customer connection scores are at an all-time high and our customer affinity that we measure on a regular basis is also very strong. And Chris, in relation to your question regarding the government stimulus program benefits. Your next question comes from the line of Brian Bittner with Oppenheimer. These forecasts were created prior to the spread of the virus were based on information available at the time and on a variety of assumptions, which we believe were reasonable, but some or all of which may prove not to be accurate. Full details on the company’s financial results, can be found here. So that in 32 stores around the world, if there happens to be a flare-up in a certain city or a certain portion of a market, the stores in that market has the agility to basically turn the dial down if they need to or turn it back up if things are recovering. Mobile order sales mix reached 23% of sales in Q3 with 12% coming from delivery and 11% from mobile order-and-pay, well above the mid-teens levels we saw pre-COVID. -EPS: -$0.58 in Q3 … The volume we were seeing in at-home coffee remained at elevated levels across the quarter. It was more -- it's more just as a resurgence happens in a large market like that that we -- when it happens like that, we're able to sort of turn the dial back slightly on the range of customers' experiences we serve through to the principles that we outlined and we help support government and local health officials as they contain the spread of the virus. Stock Advisor launched in February of 2002. Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factor discussions in our filings with the SEC, including our last annual report on Form 10-K and quarterly report on Form 10-Q. SEATTLE-- (BUSINESS WIRE)-- Starbucks Corporation (Nasdaq: SBUX) plans to release its third quarter fiscal year 2020 financial results after the market close on Tuesday, July 28, 2020 with a conference call to follow at 2:00 p.m. PT. In terms of should recession -- recessionary period start to hit, I think we've differentiated ourselves. Andrew Charles -- Cowen and Company -- Analyst. And so customers can link those card payments to the PayPal account. A Starbucks Coffee in Harlem is closed, as retail sales suffer record drop during the outbreak of the coronavirus disease (COVID-19) in New York, April 15, 2020. You order on your phone and then you can pick it up contactless or you can get it for delivery. Just keep in mind, we just added 3 million new digital customers that registered for the rewards program and being able to communicate with them personally. And we are continuing to invest in growth and the future of our business. So you can access a curbside from the app where it is available currently. Roz, why don't you take part of Jon's question on what we're doing with operating hours and sort of efficiency in the store. Please proceed with your question. And unlike many, many others in the industry, in April, -- yeah, In April, we closed all our stores with the exception of drive-thrus. Sure. Obviously, the deployment of mobile reach is building more customers that become sticky. Your next question comes from the line of Sharon Zackfia with William Blair. The company estimated that it lost $3.1 billion in revenue due to the coronavirus pandemic. Roz, would you help us understand the potential sales lift for a store that adds curbside? These adverse year-over-year revenue impacts were partially offset by net new store growth of 9% over the past 12 months. Almost 90% of sales volumes in Q3 flow through the combination of drive-thru and mobile order-and-pay. We have now developed new levels of agility and resilience that position us well for the future with the mindset and capability to safely, effectively and confidently drive our continued recovery. The market expects Starbucks (SBUX Quick Quote SBUX - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2020… And so we do have methods in place to make sure that we're managing just as efficiently as possible in these uncertain times. Starbucks, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $6.20 billion for the quarter ended September 2020, surpassing the … And so when those rates rise in certain areas, we will adjust the hours in those stores, we'll know that we have partners available to work and we will apply them to the store. Starbucks assumes no obligation to update any of these forward-looking statements or information. The improvement in International's flow through rate on lost sales up roughly 55% in Q3 from 60% in Q2 was attributable to favorable items unique to the period, primarily temporary government relief programs, the temporary extension of China loyalty program benefits during the pandemic and limited time rent concessions in both China and Japan. Please proceed with your question. So thanks everybody. But it has nothing to do, in my opinion, with the -- anything related to the economic. Over the years, we have demonstrated a clear track record of reimagining store formats to better serve customers. As we reopen stores, we created safe, familiar and convenient experiences for our customers. The company previously forecast declines of 10% to 20%. And that's why, for example, we're deploying these handheld point-of-sales. Q3 2020 Earnings Conference Call. And also even with curbside, do you see potential to add some new products that you might not be able to add without that option? Globally, we expect comparable store sales for Q4 and for fiscal 2020 to decline between 12% and 17%, demonstrating sustained sequential improvement, including across both of our key markets of the U.S. and China. Moving on to our International segment. Non-GAAP EPS was considerably better than the preliminary guidance range that we provided in our 8-K on June 10, driven by better than expected sales and margins. It marked the worst quarterly earnings performance in nearly four years as … So couple of questions related to that. Just had one follow-up on the dayparts. Now, as we started reopening stores in May and customers -- we began to -- with mobile ordering and contactless entryway pickup, we continue to see customers coming back to us. In terms of capacity and what we think could help, for instance, our drive-thru. With the strong balance sheet, we took appropriate steps to ensure liquidity and maintained our quarterly dividend payment to shareholders, while maintaining flexibility for the future. This is a significant step forward, and we value our partnership with Alibaba greatly. And then as I mentioned, we're anticipating margin recovery will lag sales recovery by about two quarters. Here's what the company reported for the quarter ended June 28 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv: The global coffee chain reported fiscal third-quarter net loss of $678.4 million, or 58 cents per share, down from net income of $1.37 billion, or $1.12 per share, a year earlier. We plan to accelerate the development of over 50 of these stores over the next 12 months to 18 months with a view to have several hundred in the U.S. over the next three years to five years. So we quickly figure out, if we launch curbside, we're going to get more customers. Q3 Consolidated Net Revenues of $4.2 Billion, Down 38% from Prior Year Due to Adverse Impact of COVID-19. Thanks. It's nearly impossible to predict whether and when those might happen. I will now turn the call over to Kevin. Our domestic ready-to-drink business grew by 11%, gaining two points of share in Q3. In addition, we estimate the impact of COVID-19 by comparing actual results to our previous forecast. And then, Pat, do you expect the benefit from the qualified payroll credits to be smaller in the fourth quarter than they were in the third quarter? I do think what is the focus right now until there's a vaccine, we just realized that we've got to focus on those experiences that customers optimize around whether they're working from home or not, which are safe, familiar and convenient. So Roz, let me hand it over to you. And because they are a company-owned market, we saw that -- saw with that a significant improvement in profit for the month of June compared to our original expectations. About 12% of orders were for delivery. For the third quarter, China's comparable store sales declined 19% including VAT favorability of four percentage points. Brian Bittner -- Oppenheimer & Co., Inc. -- Analyst. This current outlook for Q4, coupled with our better than expected results in Q3, yields a rates to our full year expectations for EPS in fiscal 2020 compared to our prior forecast. And so we feel like this new agility and resilience that we've built into the business will allow us to look at that morning daypart, adjust to the transitions we're seeing in mid-morning early afternoon and then bring in a new customer base, additional customer base with the new rewards program. It now expects to earn between 6 cents to 21 cents, down from its prior forecast, released in June, of 11 cents to 36 cents. See you at the top! But to me, it looks like the big difference is more on the profit line with the comps this quarter kind of pretty consistent maybe with guidance. I'm wondering whether you're seeing any signs of a China consumer slowdown at all in recent weeks? Thanks for your question or your comments and for your question. Based on what we know today, based on how we see our business is recovering, we anticipate and we are developing an operating plan around the assumption that our U.S. business fully recover sales, meaning back to pre-COVID-19 levels by the end of the second fiscal quarter, and that would be end of March. Well, good afternoon and welcome. Great. Please proceed with your question. As you can imagine, labor being for any retailers are greatest expense. I'm just wondering if you could talk about your performance a dozen or so years ago and why maybe the brand better insulated this go around, maybe comparing and contrasting the U.S. versus China? Thanks, John. And so that was the first indication that there is a very powerful customer affinity to Starbucks, even in a global pandemic. I will then discuss our guidance for Q4 and fiscal 2020, followed by a preliminary perspective on fiscal 2021. You said that sales and operating profits recovered more quickly than expected. Starbucks (NASDAQ: SBUX) posted a 157.76% decrease in earnings from Q3.Sales, however, increased by 46.92% over the previous quarter to $6.20 billion. We do expect that there will be a lag between sales recovery and margin recovery as we continue to refine our ability to operate differently in the new environment. The new headwind is a combination of factors. [Operator Instructions]. Brian, thanks for your question. We're going to continue to innovate in ways that are relevant to our customers independent of the channel by which they buy from us. But in the next couple of quarters, we do expect margins will continue to lag prior year. So we are seeing that. Second, we have future-proofed our business model and reinforced our balance sheet to enable us to play offense by accelerating key strategic initiatives that further differentiate Starbucks and reinforced the long-term sustainable growth opportunity ahead. My hope is that through this discussion we've been able to give you a sense of the confidence we have in our ability to navigate this global pandemic. And as a result, we would not anticipate significant government stimulus program benefits by way of payroll tax credits. Additionally, customer affinity for Starbucks is very strong, as demonstrated by improvements in our customer connection scores, growth in customer loyalty and market share gains, while we anticipate these improvements to continue, our balance sheet and the strategic actions we have taken to position Starbucks to weather a more protracted disruption in global economic activity. So that's spot on. They've done a phenomenal job. Although the impacts of COVID-19 weighed heavily on our Q3 financial results, we are encouraged by the fact that our sales and profits across all our operating segments recovered more quickly than we expected, and that our very strong balance sheet has allowed us to make significant and important investments in the business for the long-term, while weathering the pandemic. CEO Kevin Johnson said that the chain saw fewer consumers buying drinks on their way to work and school. Starbucks Corporation SBUX will report third-quarter fiscal 2020 results on Jul 28, after the closing bell. And then as Roz said, the work they've done on increasing throughput at drive-thru and watching curbside, that just opens up new channels. Thank you. Yeah. Also, helping us understand the activity of the customer as we reward the loyalty and delivering personalized offers to the expanded customer base. You'll be able to pay with a credit or debit card, cash or select a mobile wallet to earn the stars without having to pre-load a Starbucks card within the app. Today, customers are seeking safe, familiar and convenient experiences in many aspects of their lives. U.S. same-store sales fell 40% in the quarter. So for Q4, since we have effectively sunsetted our catastrophe pay, we're not anticipating significant expense in Q4. Starbucks stock rose late. And so we look forward to curbside to give our customers just one more contactless opportunity and our partners a chance to deliver the best customer service to our customers. This is who we are at our core. Starbucks Corp (NASDAQ:SBUX) Q3 2020 Earnings Call Jul 28, 2020, 5:00 p.m. Jeffrey, this is Pat. And third, we helped several strategic suppliers weather this crisis with certain accelerated payments in effect through July. So that is -- so it serves two purposes. Good afternoon, my name is Devin, and I will be your conference operator today. 32,000 stores around the world. Despite the pandemic, Starbucks opened 130 net new cafes worldwide during the quarter. Well, today, we're not -- this is not a crisis any longer in my opinion. Starbucks Earnings: SBUX Stock Jumps 2% on Q3 Beats SBUX EPS and revenue were above estimates By William White , InvestorPlace Writer Jul 28, 2020, 4:23 pm EST July 28, 2020 When we open our stores for to-go orders or even limited seating, we see customers come back. Thank you, Matt. As I will discuss in greater detail later, that is why we are accelerating innovative store formats, like Starbucks Pickup and new operating protocols, such as curbside delivery as they align closely with the customer preferences that have evolved as a result of COVID-19. Starbucks Corporation (NASDAQ:SBUX). Looking forward to providing more refined perspective with our Q4 earnings call, by which time, we will have developed our operating plans for fiscal '21. Plant-based is becoming a very popular whether it's plant-based milks or the Impossible breakfast sandwich that we launched in the U.S., the Beyond Meat offerings that we put on the menu in Canada and China. Thanks, Sara. These items are excluded from our non-GAAP results. Patrick Grismer — Executive Vice President and Chief Financial Officer. We have also accelerated the rollout of a similar concept in China, Starbucks Now stores, adding nine new locations in Q3 for a total of 15. And so the Mastrena 2 is at 4,000 stores as we speak. As always, we look forward to bringing you along our journey to create opportunities and strengthen our communities. SEATTLE – Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal fourth quarter ended September 27, 2020. (RTTNews) - Below are the earnings highlights for Starbucks Corp. (SBUX): -Earnings: -$678.4 million in Q3 vs. $1378.8 million in the same period last year. And then those members can choose to keep paying with their pre-loaded Starbucks card to earn two stars per $1. But any clarity around that would be helpful. Starbucks Corporation SBUX will report third-quarter fiscal 2020 results on Jul 28, after the closing bell. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. For instance, we are going to be introducing a plant-based protein box because we know in the afternoon there is this extra boost needed. Those businesses that fail to evolve, typically fall behind. 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