Starbucks Corporation (SBUX) Deutsche Bank dbAccess 2024 Global Consumer Conference (Transcript)

Starbucks Corporation (NASDAQ:SBUX) Deutsche Bank dbAccess 2024 Global Consumer Conference June 5, 2024 2:30 AM ET

Company Participants

Rachel Ruggeri – EVP and CFO

Conference Call Participants

Lauren Silberman – Deutsche Bank

Lauren Silberman

All right. I guess we will get started. Hi, I am Lauren Silberman. I’m the Equity Research analyst here at the Bank covering the restaurant sector. I am thrilled to kick off day two of Deutsche Bank’s Global Consumer Conference with Starbucks. Pleased to be joined by Starbucks CFO, Rachel Ruggeri. So Rachel, thanks so much for being here.

Rachel Ruggeri

Well, thank you for having me.

Question-and-Answer Session

Q – Lauren Silberman

So Rachel, you’ve been at Starbucks for more than 20 years. You’ve seen a lot over your tenure. Can you frame some of the near-term headwinds Starbucks is facing within your longer-term perspective of the business?

Rachel Ruggeri

Yes. I mean, as you said I’ve been at Starbucks for a long-tenure. And what’s been consistent over my tenure is that we have always focused on a relationship with our partners and our customers. That differentiated Starbucks. It gives us a competitive advantage. And those relationships evolve over time, and we as a company, have to evolve accordingly. More specifically, on COVID as an example, we had to strengthen the relationship with our partners, and that was the genesis of our reinvention plan. And so we invested meaningfully over the past couple of years to create a more stable environment.

So our partners could better serve our customers. And that’s led to a new low in terms of turnover. So we’ve made good progress there. But more recently, what we are seeing is headwinds related to our customers, particularly our occasional customers, largely as it relates to the awareness of what we have and the perception of value. And it is

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