Good for your health and good for the planet. Let me now move on to China where at the end of Q3, 99% of stores had reopened with approximately 90% having regular operating hours and over 70% having full seating. SEATTLE – Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal fourth quarter ended September 27, 2020. And curious on how you see this progressing and really what limits the speed at which you can add this capability given it obviously is a lot easier from a process perspective relative to the new real estate you're exploring in some of these smaller format locations? And so our beverage innovation is going to continue to focus on all the great things we've been doing around our cold beverage lineup, with cold foam, coffee forward beverages, our refreshers, all of that is going to continue to move forward. They're attaching more food. And I don't necessarily see that as being a driver of the fact that people work from home or we have curbside. Your next question comes from the line of Sara Senatore with Bernstein. Great. 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. There are some things that we're considering in terms of innovation and then there are some things that we are accelerating in the innovation pipeline. We expect the VAT exemption will expire at the end of December. Importantly, as we exited Q3, we were cash flow positive with upward momentum, setting us on a solid path to reduce our financial leverage in future quarters. So we are seeing that. The segment's comparable store sales declined by 37% in Q3 relative to the prior year, but exceeded the expectations we shared last month, primarily driven by Japan's faster than expected pace of sales recovery, boosted by successful seasonal product promotions. Durga Doraisamy – Vice President-Investor Relations And so our innovation agenda is going to continue to drive around the things that we know are relevant to our customers, things that inspire our partners and stay true to handcrafted beverages, that's what differentiates us. Yeah. Your next question comes from the line of Sharon Zackfia with William Blair. We now expect GAAP EPS in Q4 of $0.06 to $0.21 and non-GAAP EPS of $0.18 to $0.33. And so I think based on what we're seeing in terms of the demand and by being able to increase throughput in those channels that are viewed as safe and convenient by our customers, that's going to help us on the recovery curve. We now expect GAAP EPS in fiscal 2020 of $0.50 to $0.65 and non-GAAP EPS of $0.83 to $0.98. 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 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. International's revenue of $950 million in Q3 was a 40% reduction versus the prior year, primarily due to the 37% decline in comparable store sales. Returns as of 12/20/2020. And they now have the option to earn one star per $1 spent when you pay with a credit or debit card, cash or select mobile wallet. Anything more there -- metrics to share or just kind of how you're thinking about that customer dynamics? This benefit was largely offset by traffic softness that emerged in Beijing in the last two weeks of the quarter due to a resurgence of COVID-19 in that city. Patrick Grismer -- Executive Vice President and Chief Financial Officer. As you would expect, much of the year-over-year reduction in our operating margin was due to sales deleverage as well as incremental expenses to provide a safe experience in our stores, all related to the impacts of COVID-19. So I think we have line of sight visibility to what our customers need and want. Please proceed with your question. The interesting thing about curbside for us is that it is tech-enabled. And for International, we expect full year comparable store sales to decline in the range of 20% to 25% in fiscal 2020, including a 1% favorable VAT impact. 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. This segment's revenue is expected to decline between 5% and 6% on a reported basis for the full year and fiscal 2020 relative to the prior year as we lap certain transition items related to the Global Coffee Alliance that benefited the segment's top-line growth in fiscal 2019. My name is Hector, and I will be your conference operator today. In urban core markets where drive-thrus and curbside aren't feasible, we will begin to reposition our store formats to create a blend of traditional Starbucks stores with new Starbucks Pickup stores. Despite the pandemic, Starbucks opened 130 net new cafes worldwide during the quarter. And I feel very good about the fact that we're now in a position where we've operationalize these store protocols and we know how to adapt very rapidly and we do that with distributed leadership. Clearly, the priority or the customer behavior was around safe, familiar, convenient experiences. For the third quarter, China's comparable store sales declined 19% including VAT favorability of four percentage points. "All of this indicates that customers are adapting their routines," he said. Good afternoon, my name is Devin, and I will be your conference operator today. Your next question comes from the line of Chris O'Cull with Stifel. Good afternoon. 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. In addition, we estimate the impact of COVID-19 by comparing actual results to our previous forecast. SBUX Q1 2020 Earnings Performance. Almost 90% of sales volumes in Q3 flow through the combination of drive-thru and mobile order-and-pay. Although, our digital platform continues to be a source of strength, disruption to the weekday morning routines, notably, commuting to work and school is a headwind we are focused on across the U.S. as we continue to recover our business. 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. Add to calendar. Fueled by these new digital initiatives, we have seen strong sequential growth in active rewards members. 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. Yes. Today's discussion will be led by Kevin Johnson, President and CEO; and Pat Grismer, CFO. Please proceed with your question. Starbucks opened 130 net new locations globally, despite the pandemic. And I think that's a very positive thing because I think as a company, we've now taken this playbook that was developed in China and adapted for the U.S. and we basically have embedded this into our store protocols and our operating procedures. Costs related to the pandemic, like paid leave for baristas and added safety measures, weighed on its profits. Number two is extending that experience in our store to digital customer relations -- relationships. Excluding items, Starbucks lost 46 cents per share, narrower than the loss of 59 cents per share expected by analysts surveyed by Refinitiv. Just looking to talk a little bit about the broader outlook from a consumer perspective. And so that was the contributing factor in China. Starbucks earnings are due after the close, as the coffee giant seeks ways to safely reopen locations. Starbucks, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $6.20 billion for the quarter ended September 2020, surpassing the … We're pleased overall with the progress we've seen to-date. So let's go to Roz. We are pleased with the progress we are making in China to recover sales. As part of our ongoing partnership, we are expanding our reach to customers across the Chinese Mainland by introducing the Starbucks Now mobile order-and-pay feature to multiple platforms in the Alibaba Digital Economy, including Taobao, Digital Mapping, an information provider and map, local services app Qbay and Alipay, which serve a combined user base of nearly 1 billion customers. And as a result, we would not anticipate significant government stimulus program benefits by way of payroll tax credits. Yeah. We are rolling this out in U.S. and in Canada. Starbucks swung to a loss during its fiscal third quarter as its same-store sales plunged 40% in the wake of the coronavirus pandemic.Â, But the company appears optimistic about the future, raising the outlook for its adjusted earnings for the fiscal fourth quarter.Â. 32,000 stores around the world. 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. Happy to answer your question. Your next question comes from the line of Jon Tower with Wells Fargo. We're also looking at premiumizing the category, expanding consumption and driving loyalty through our Channel Development business as well. CEO Kevin Johnson said that the chain saw fewer consumers buying drinks on their way to work and school. So thanks everybody. Company Participants. And so I think that same formula works whether you work from home or you work from work. In May, we launched a new WeChat Mini program with new functionality for WeChat users, including Starbucks Delivers. Good afternoon, everyone, and thank you for joining us today to discuss our third quarter fiscal year 2020 results. Our liquidity position remains strong and continues to improve. And in many ways, we navigated this by prioritizing the safety and the health and well being of our partners and the customers we serve. Finally, Channel Development. Like, it should be the opposite. Our $3 billion bond issuance in May enabled us to fund these investments, cover our capital expenditures, pre-fund next year's bond maturities at attractive rates, and of course, sustain our quarterly dividend payments, honoring our commitment to shareholders. We are shifting more beverage and food menu items to include plant-based options. And Chris, in relation to your question regarding the government stimulus program benefits. Is that just rolling out in the U.S. or are you also making any modifications overseas? On to Channel Development. We are accelerating efforts to expand these offerings for our customers. Before we conclude this call, I want to thank you all for joining us today. The company temporarily shuttered most of its U.S. cafes between mid-March to mid-April, transitioning to drive-thru and delivery only. And so that will come forward quicker than planned. Early results from these innovations are very encouraging. We saw a much better flow through, more profit performance than we did improvement in sales. And part of that is, I believe, the way that we've navigated this has built trust. It's important to bear in mind that as we do innovate new channels of distribution at our stores, for example, curbside delivery or as we anticipate the longer term growth of third-party delivery, those channels require incremental costs, but they are necessary in order to capture the incremental sales. Yeah. They build that relationship with Starbucks, we can communicate with them, we can serve their needs, we can personalize that experience for them. The work that we see customers come back to you easier for customers to have those experience just. 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