Starbucks says will sunset mobile order, pickup only concept in FY26

Says found this format to be overly transactional. Says conservative on how the current year-over-year trends will change in Q4 for the U.S. company operated business. Says pleased to be ahead of schedule with foundational programs like Green Apron Service. Says confident that 2026 will continue to improve as the company sees the effects of its Back to Starbucks (SBUX) strategy begin to scale. Says both the tariff environment and coffee prices continue to be dynamic. Says continues to mitigate expected tariff exposure outside of green coffee and pleased to see green coffee prices moderate. Says increased coffee coverage relative to last quarter as prices have declined. Says due to coffee buying and hedging practices, should expect to see both moving average coffee costs and coffee tariff impacts lag the market with year over year coffee cost increases expected to peak in FY26. Says margins in the near term are impacted by critical investments in stores, partners and customers. Says as we progress on Back to Starbucks strategy, will invest over 500M additional labor hours into U.S. company operated portfolio over the next year. Says focusing on driving a healthier and more efficient cost structure that allows the company to weather macro headwinds. Comments taken from Q3 earnings conference call.