00:05:35 · Romaine Bostick, Brian Niccol
[00:05:35] S0: Well, let's talk about some of the subcategories there, because, I mean, you've obviously made a lot of changes to the menu. I saw Kathy Smith was talking about how matcha has now become a billion dollar business. We've talked a lot about refreshers and merchandising and everything else. Not always as much as about coffee, Brian. And I am curious, do you still view Starbucks as a coffee led company? [00:05:57] S1: Yeah, look, our biggest category that grew this last year was espresso, both in hot and cold, primarily driven by cold. But yeah, what Kathy was talking about is we've had tremendous growth in these other aspects, right? And remember, Starbucks is the coffee company that originally had a tea business as well. So it makes total sense for us to be winning with matcha, you know, in cold matcha, like iced matcha lattes. That is what's driving that billion-dollar business. And then we've got a great platform called Cold Foam that just makes it really delicious. I personally love an iced matcha latte with a strawberry cold foam. It's a great afternoon drink. And I think that's what you're hearing our customers say. [00:06:37] S0: Well, I am curious, though, too, but as you kind of move into this next phase of growth, Brian, I mean, there's also been a focus, I know, on improving the food menu. Has there been discussions about the idea that maybe Starbucks could pursue a multi-brand model for Starbucks Corp.
00:06:37 · Romaine Bostick, Brian Niccol
[00:06:37] S0: Well, I am curious, though, too, but as you kind of move into this next phase of growth, Brian, I mean, there's also been a focus, I know, on improving the food menu. Has there been discussions about the idea that maybe Starbucks could pursue a multi-brand model for Starbucks Corp. [00:06:56] S1: Yeah, look, I think it's one of those possibilities. The good news is Starbucks is such a strong business and our scale presents an opportunity to go beyond just being a one brand company. That's not our focus right now, but is it an opportunity down the road? I would never say never. But look, I think when you've got a strong business like Starbucks, I think you put other businesses into a portfolio that could leverage the strength of Starbucks. That could be an interesting proposition down the road. [00:07:27] S0: How far have any talks gone with any other potential parties this year? [00:07:33] S1: You know, that has not been our focus. Our focus is first getting the turnaround and getting Starbucks into a growth situation. And I think that's what we demonstrated, you know, this quarter. And I think you'll continue to see us demonstrate in this fiscal year. [00:07:45] S0: Would you be open to pursuing M & A as a way to meet some of your growth targets beyond organically?
00:07:45 · Romaine Bostick, Brian Niccol
[00:07:45] S0: Would you be open to pursuing M & A as a way to meet some of your growth targets beyond organically? [00:07:52] S1: Look, the good news is I don't need inorganic to hit our growth targets. I am in a position of strength. We're in no rush to do anything outside of our back-to-Starbucks growth plan. So, look, I think I wouldn't be doing my job if I wasn't taking a look at what's out there. But with that said, the good news is we're in a place where we can get all the growth that we know we can achieve through the Starbucks business. And when you're in that position of strength, it gives you a lot of opportunities to evaluate and figure out what you want to do next. But the good news is the Starbucks plan has tremendous upside and tremendous growth in what we're executing right now. The team's focused, and I think we're demonstrating that Starbucks is a winner. [00:08:37] S0: Well, Brian, really appreciate you joining us today. And I also want to thank you and your team. You actually finally helped me out with my Halloween costume this year after seeing your latest ad there. I'm going to be Martha Stewart. [00:08:47] S1: Nice, cozy outfit. [00:08:49] S0: Pumpkin spice latte on a basic attitude for everybody that I greet. [00:08:54] S1: Well, man, I wish you would swing by my place. I'd love to see that.