Durga Doraisamy - Director of Investor Relations Howard S. Schultz - Chairman & Chief Executive Officer Kevin R. Johnson - President, Chief Operating Officer & Director Scott Harlan Maw - Executive Vice President and Chief Financial Officer Matthew Ryan - Executive Vice President, Global Chief Strategy Officer Clifford Burrows - Group President-Americas, US & Teavana Region Michael Conway - President, Starbucks Global Channel Development

Sara H. Senatore - Sanford C. Bernstein & Co. LLC John William Ivankoe - JPMorgan Securities LLC David Palmer - RBC Capital Markets LLC John Glass - Morgan Stanley & Co. LLC David E. Tarantino - Robert W. Baird & Co., Inc. (Broker) Andrew Charles - Cowen & Co. LLC Jason West - Credit Suisse Securities (USA) LLC (Broker) Nicole M. Miller Regan - Piper Jaffray & Co. (Broker) Joseph Terrence Buckley - Bank of America Merrill Lynch Matthew DiFrisco - Guggenheim Securities LLC Karen Holthouse - Goldman Sachs & Co. R.J. Hottovy - Morningstar, Inc. (Research) Mark Astrachan - Stifel, Nicolaus & Co., Inc.

Good afternoon. My name is Stephanie, and I will be your conference operator today. At this time, I would like to welcome everyone to Starbucks Coffee Company's Third Quarter Fiscal Year 2016 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you. Ms. Doraisamy, you may begin.

Thank you. Good afternoon, everyone. This is Durga Doraisamy, Director of Investor Relations at Starbucks Coffee Company. Thank you for joining us today to discuss our third quarter 2016 results, which will be led by Howard Schultz, Chairman and CEO; Kevin Johnson, President and COO; and Scott Maw, our CFO. Joining us for Q&A are Cliff Burrows, Group President, U.S. and Americas; John Culver, Group President, China, Asia-Pacific, Channel Development and Emerging Brands; Matt Ryan, Global Chief Strategy Officer; Adam Brotman, Global Chief Digital Officer; and Michael Conway, President of Global Channel Development. This conference call will include forward-looking statements, which are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. 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. Starbucks assumes no obligation to update any of these forward-looking statements or information. Please refer to our website at investor.starbucks.com to find the reconciliation of non-GAAP financial measures referenced in today's call with their corresponding GAAP measures. This conference call is being webcast, and an archive of the webcast will be available on our website at investor.starbucks.com. Before I turn the call over to Howard, I would like to take this opportunity to make you aware of our Biennial Investor Day, which will be held on December 7 in New York City. More details will be coming soon. We hope to see you there, so please reserve December 7 on your schedule. With that, I will turn the call over to Howard Schultz. Howard? Howard S. Schultz - Chairman & Chief Executive Officer: Thank you, Durga. Good afternoon and welcome, everyone. In Starbucks' 24 years of public…

Thanks, Kevin, and good afternoon, everyone. Starbucks' third quarter results, once again, reflect strong revenue and profit growth, although below recent trends. For the first time in our history, consolidated operating income exceeded $1 billion in a non-holiday quarter, increasing 9% over last year despite a full point of negative impact from foreign exchange. Operating margin expanded 30 basis points to 19.5% on a GAAP basis, and 19.8% on a non-GAAP basis, both new Q3 records. Margin improvement was driven by sales leverage and favorability in cost of sales that more than offset the impact of ongoing partner and digital investments, primarily related to our Americas segment. On a GAAP basis, EPS increased 24% to $0.51 in Q3, and on a non-GAAP basis, EPS increased 17% to $0.49. Noteworthy is that non-GAAP EPS in Q3 excludes the impact from the net gain resulting from the sale of our business in Germany to an existing licensed partner and an incremental tax benefit related to certain additional domestic manufacturing deductions for periods prior to FY 2016. Additionally, non-GAAP EPS continues to exclude certain costs related to our purchase of Starbucks Japan discussed on prior earnings calls. You can see the amount, timing, and description of each of these non-GAAP items in the detailed reconciliation table provided at the end of the earnings release. Please review that table in conjunction with our results. I'll now take you through the operating performance of each of our major segments in Q3. Americas' Q3 operating income grew to a new third quarter record of $899 million, a 5% increase over the prior year quarter. Operating margin, while declining 40 basis points year-over-year, remains strong at 24.6%. In addition to the details Kevin provided on U.S. comps, we did see nearly one point of transaction splitting impact…

Your first question comes from the line of Sara Senatore with Bernstein. Your line is open. Sara H. Senatore - Sanford C. Bernstein & Co. LLC: Thank you very much. Howard, I was wondering if maybe you could give some historical context. You've seen periods of weaker consumer confidence before. For me, the second quarter of 2012 kind of comes to mind and maybe late in 2014. And Starbucks has always been able to address it and re-accelerate comps. So could you maybe just talk about it in the context of what you're seeing now and your confidence in your ability to do that again similar to as you've done in prior years? Howard S. Schultz - Chairman & Chief Executive Officer: Thank you for the question. You know, let me say that I think we've been very fortunate over the years to be able to create the kind of product and experience that provides our customers with a sense of community and an emotional attachment that I think, over time, despite the conditions in the marketplace and the economic pressures, have been very inviting for our customers. I say that because I think what we are experiencing to-date is something different. And before anyone rushes to judgment what I mean by that, let me explain it. I think we have a situation where you have a very uncertain election. You have domestic civil unrest with regard to race. And I think the issues around terror have created a level of anxiety. And so, we're no longer looking at just an economic downturn. There are a number of things that we are facing as citizens, and I think the direction of the country. And so, I think this is a multi-prong issue that almost every company and every consumer brand…

Your next question comes from the line of John Ivankoe with JPMorgan. Your line is open.

Hi. Great. Thank you so much, and I do apologize if I missed this but, Howard, it's been my impression with all of the exceptional things that you do at the store level that not everyone is aware of things like the benefits of my Starbucks Rewards, and even some of your core customers don't necessarily realize the benefits that they get from mobile ordering, given that 5% of transactions are currently mobile ordering. So everyone knows what Starbucks is in the United States, but is there an awareness opportunity for you to communicate directly, indirectly, in the Starbucks way, some of the key attributes that does make it different that perhaps gives us an opportunity as we think about 2017? Howard S. Schultz - Chairman & Chief Executive Officer: Sure. One second. Here is Matt Ryan, who is going to take that.

Thank you, John, for the question. You're absolutely right. We do have an opportunity there. When we look over time, there are a lot of customers who are not aware of the benefits of the Rewards program. There are a lot of customers who have not joined it yet there. There are a lot of customers who don't know about Mobile Order & Pay and the tremendous benefits. We're very fortunate that we have that in front of us, so we're leaning in constantly. We've seen a lot more recruitment of members in our stores this year. You're going to continue to see that, and you're going to continue to see us lean in hard on Mobile Order & Pay, continuing to improve the experience and showing people just how good it can be.

Your next question comes from the line of David Palmer with RBC. Your line is open.

Hi. Thanks. With regard to Food growth, you mentioned that it was perhaps not quite as strong as it was in previous quarters. Do you think you're reaching near-peak levels of Food attachment? Or is this just quarterly noise? And relatedly, from a menu composition standpoint, what do you think is perhaps the more exciting sales layers that you're pursuing currently? Thanks. Kevin R. Johnson - President, Chief Operating Officer & Director: Yeah. This is Kevin, David, and then I'll hand it over to Cliff to give you some more background. I think we have not reached some level of saturation on how much we can grow Food. I think we've seen very good growth of our breakfast sandwich lineup. We're seeing increased attach of Food. I think if you look at each daypart, there are opportunities in every daypart for us to do more around Food, and I think we recognize that as one of our seven core strategies for growth and the work that we're doing, both in R&D and innovation and testing things in stores and markets, I think continues to present an opportunity. We did see Food contribute one point of comp growth this quarter. I think in prior quarter I think it was at two points of comp growth. So we're still seeing good comp growth coming from Food, and there's more we can do there. Cliff, I'll let you add some more to that. Clifford Burrows - Group President-Americas, US & Teavana Region: Yeah. Thanks, Kevin. And, David, it's great to see the strength and the continued growth on breakfast sandwiches, and that morning daypart just continues to get stronger and stronger. The opportunity is to provide choice, variety and a competitive approach around lunch and later dayparts. And we've started our journey, and if I remember back rolling out breakfast sandwiches I think took us several years, and the growth we've seen since we've brought in the baked goods at La Boulange and the enhancements to the quality and the choice of breakfast sandwiches gives me every confidence that we will continue on this journey, 20% of our sales now coming from Food, it's a great opportunity for the future, and we're working hard on it.

Your next question comes from the line of John Glass with Morgan Stanley. Your line is open. John Glass - Morgan Stanley & Co. LLC: Thanks very much. You recently announced that you were going to raise wages in the U.S. by between 5% and 15%. So I'm just wondering, I know you don't talk about 2017 yet, but it begs the question since you brought it up at least in discussing that, what is the cost of that in dollars? What are the expenses that roll off this year that might help offset that? And can you fund that kind of investment in the context of 15% to 20% earnings growth? Any help there would be greatly appreciated.

Thanks, John. It's Scott. I think the first thing I would say is the vast majority of that investment that we announced recently was already in our initial plans for 2017. And both those investments and any other investments that we choose to do as we move into next year, we'll talk about during the next earnings call, but I want to make sure both the performance this quarter, the guidance next quarter, the investments we're making, there is no wavering in our commitment to deliver at least 15% EPS growth every year, and that is true for 2017. So we'll get into more specifics, but as comp growth reaccelerates, as we take a look at additional investments, as we lap over investments that we make this year, the sum of all of that will be at least 15% earnings growth. Howard S. Schultz - Chairman & Chief Executive Officer: And let me add something qualitatively to that. Because of the degree of frequency that the average customer has to their core store, their home store, whether it's at work or at home, there is a relationship that is built between the barista, the manager, and the customer. And we know from our own research that anything that we can do that lowers attrition, that creates a relationship with our customers and the people who are proudly wearing the green apron, that performance that you've seen year in, year out, is directly related. So what we want to try and do is really get ahead of any federal or state mandate to be the employer of choice, whether we go back to the late 1980s with Bean Stock and healthcare, and what we've done in the last couple of years with college achievement, and now what we're doing now on wages, we want to try and do everything we can to share success, because we know that the brand of Starbucks is directly related to the experience in our stores and our brand, unlike almost any consumer brand or retail stores directly linked to the pride and the trust that our people have in the company.

Your next question comes from the line of David Tarantino with Baird. Your line is open. David E. Tarantino - Robert W. Baird & Co., Inc. (Broker): Hi. Good afternoon. I have a clarification question and then another question. First, on the clarification side, when you say, Howard, that you have line of sight into comps improving, is that meant to be a signal that you're already seeing that in July? Or you're expecting that to happen in the balance of the quarter? So if you could help to clarify that, that would be great. And then I think there was a reference to better leveraging the new Rewards program as you move forward. If you could just elaborate on what you're planning there and if that's something we should expect to see in the current quarter or as we move into next year. Howard S. Schultz - Chairman & Chief Executive Officer: I think it would not be responsible to comment on the first 21 days of the quarter with regard to where comps are, but I think those of you who have been covering the company all these years in our public life of 24 years, we do not have a habit of giving guidance that we don't believe we can achieve. So take it on face value that Scott said that comps are going to improve in the quarter, and we believe that's going to be true. Kevin R. Johnson - President, Chief Operating Officer & Director: Yeah. And then, David, in terms of your question on better leverage of the Rewards program and the digital flywheel, I'll give you three dimensions in which I think we have an opportunity to better leverage that asset. Number one is continued geographic deployment. We talked about what we did…

Thanks, Kevin. I think the one thing I would add here is there's a direct linkage between the changes we made in our Rewards program and our ability to launch personalization moving forward. As you know, the past program only rewarded frequency. We couldn't reward any other behavior but that. We now have the opportunity, both in e-mail, which we've just begun, and this quarter, in our app, to do suggested selling. So we will be suggesting and making personalized offers within the context of our app that will allow people to see things that are right for them. In the year to come, you'll see more of this in the context of ordering. So at the moment, when somebody is there, we'll be able to suggest items that are additional purchases and reward that with a currency that now rewards not only frequency but also spend. So connecting the dots there you can see how this will build on itself and give us leverage to drive the total customer sales.

Your next question comes from the line of Andrew Charles with Cowen & Co. Your line is open. Andrew Charles - Cowen & Co. LLC: Great. Thank you. I've noticed a heightened level of Star Dash e-mails since the MSR transition, and this obviously isn't Starbucks-specific as the whole industry's promotional intensity has increased. But I'm curious as you think about improved trends in 4Q, is this taking into consideration weaning off these promotions, or given the fragile consumer environment Howard noted earlier, if a heightened level of promotions remains necessary near-term? Thanks.

Matt Ryan here again. I that what I'd like to call attention to that what you're actually seeing are more personalized and relevant communications. So very late in the quarter, we turned on, what we call, one-to-one marketing. It's actually close to one-to-30, but we are getting down to the level of personalized rewards based upon what people actually will do and knowledge we have of that individual customer's behavior. Previously, we sent e-mails to very large segments of customers. Now, we're able to do it on a very targeted basis, and what that allows us to do is to be more efficient and more effective with our communications so that we don't have to peanut butter a broad discount. We can go in more selectively and offer just what's right to get the next incremental level of engagement with us. Howard S. Schultz - Chairman & Chief Executive Officer: Let me add one other thing that I think is very important. If you think what the size and scale of the national footprint of Starbucks and the amount of stores we have, we've achieved something that is quite rare and unique, and that is we've achieved a level of ubiquity in terms of our scale and national footprint and, at the same time, without question, a premium position in the marketplace. That is as a result of a very disciplined and thoughtful view of how to build and maintain a premium brand. What we saw this past quarter and, for that matter, even beyond that, was given the challenges that exist in the marketplace that we've all seen and discussed, there is a tremendous amount of discounting and promotion going on in the market where people are buying business. We do not want to be in the business of buying business. We do not want to discount or dilute the integrity of the brand. We know who we are. We know what our core purpose is. And we've got to play the long game and have faith and confidence in what we stand for in terms of the experience, the quality of the coffee. What we keep talking about really internally is we want to take the equity of the brand and the position of Starbucks up. The premiumization of Starbucks is linked to the Roasteries and linked to this new format of stores that we are working on that you'll begin to see in calendar 2017 which is Starbucks Reserve which, in a way, is like a cousin in a smaller format of the Roastery. All of that will shine a halo on the brand, shine a halo on the experience, and we don't want to do anything that would dilute that halo by buying business or discounting, and we're not going to get in that game, despite the fact that so many other people are throwing that at us.

Your next question comes from the line of Jason West with Credit Suisse. Your line is open. Jason West - Credit Suisse Securities (USA) LLC (Broker): Yeah. Thanks. Just going back to the kind of broader margin outlook here, you guys have made some significant investments in the partners and technology over the last two years. I think there's a perception out there that as you roll into next year, you'll be able to lap some of those investments and perhaps will give you some room to let a little more margin flow to the bottom line. Can you kind of address your thoughts on that perception that's out there? Is that the right way to think about it? Or are we just in the earlier stages of these types of investments and you expect them to continue into next year, particularly given the labor environment that we have today?

Thanks, Jason. This is Scott. What we said in the past is the significant investment started in 2014. They ramped in 2015, and we increased them again in 2016. And I think that, as we look ahead to 2017 and we start to put together our plan, I think there will be another significant level of investment in our partners in particular. We announced some of those recently. They're vital to driving the right level of retention, the right level of customer execution, as Howard talked about. So I think looking forward to 2017, you can see – I can see another significant amount of investments and also on the digital front. So as you look at the things that Matt talked about, the ability to drive personalization, we see an additional opportunity there. So I don't think we're in the early innings, but it will probably continue for a number of years as we continue to drive digital innovation and we continue to drive the right level of investments in stores and partners. But what I think is important is that doesn't have any impact on our long-term guidance of at least 15% earnings growth, 10% profit growth, and as a result, margin expansion. I just think we're investing more of that margin into our core partner and digital investments.

Your next question comes from the line of Nicole Miller with Piper Jaffray. Your line is open. Nicole M. Miller Regan - Piper Jaffray & Co. (Broker): Thank you. My question is just tell us more about Channel Development, but what I was hoping you would comment on is I know dollar growth was up 9%, but how does volume growth compare? And then I was looking back in my model and historically the fourth quarter for the past few years is the highest operating margin quarter. So is there any reason that wouldn't hold true for this year? And the final part of that is, is everything in that's been renegotiated or added in this quarter such that it's a sustainable peak? Or do you think just in any timeframe in the future, it could be even higher? Thank you so much.

Thank you, Nicole. This is Mike Conway. So you're right, the 9% growth actually is quite, quite strong. We're pleased with that, and I would say that the combination of our strong in-store execution, the strong distribution that we've been able to have, the strength in general that we're seeing in foodservice is all contributing to that. As I look at volume, I'd say our volume growth was a little bit higher than that, but not much, and I think the combination of our base and promotive pricing has been able to deliver both the kind of margin expansion that we want to see as well as the share improvements that we would see. As we look forward to the fourth quarter, we feel very good about the innovation that we have coming. We've got our Cold Brew that is coming in our ready-to-serve segment. We also have our new Caffè Latte launch that is in our K-Cup format. That is going to be launched in the fourth quarter. And then on a global basis, we have a lot of new initiatives that are coming, particularly in the ready-to-drink and single-serve segments with our Nespresso launch in EMEA. So we feel good about the quality of our growth in the third quarter and our outlook for the fourth quarter we also feel good about as well. And I'll let Scott take the margin expansion question.

On the fourth quarter Channel Development margin, it will be the highest quarter again for us this year, and it will expand over last year's Channel Development margin and expand over this quarter's margin. There's a lot of good things, as Mike talked about, that will impact that quarter. And what I would say to the second part of your question, Nicole, is we continue to forecast, as we move through time, margin expansion in Channel Development. It won't be 710 basis points very many quarters. This was unusual and excellent, but we do expect channel operating income to grow faster than revenue growth, and that will drive margin expansion as we move into 2017.

Your next question comes from the line of Joe Buckley with Bank of America Merrill Lynch. Your line is open.

Thank you. Can I take you back to the effects of the Rewards program on the quarter? If you could just walk through in a little more detail how you think it disrupted some of the other things you that may have typically done. And maybe tie into that just customer acceptance. I mean, I know the membership is up quite big, but just sort of customer acceptance of the new program. Howard S. Schultz - Chairman & Chief Executive Officer: Joe, this is Howard. I think Kevin is going to take the bulk of the question. But I think ask yourself rhetorically, with 25 consecutive quarters of 5% or greater, if we did not have the confluence of the Rewards program and the Frappuccino launch at the same time, what would comps have been for this quarter? And I can tell you unequivocally that we know internally that this was an anomaly as a result of what I described in my prepared remarks. Now, we own that from an execution standpoint because we underestimated what would take place. But if any of that did not exist, the comps in the quarter would not have been before that we have outlined in the release. And I think as a result of that, we feel very comfortable that things are going to improve. Kevin? Kevin R. Johnson - President, Chief Operating Officer & Director: Yeah. Let me build on that, Joe. I think there's three primary drivers behind our Q3 results in the U.S. business. First, we launched Starbucks Rewards in mid-April, which impacted the timing of our annual Summer 1 campaign, and that Summer 1 campaign is what kicks off and launches our Frappuccino Happy Hour season. Now, in many ways, the Rewards launch went exactly as planned, with the…

Your next question comes from the line of Matthew DiFrisco with Guggenheim Securities. Your line is now open.

Thank you. Just a little bit of a follow-up on that also with respect to looking back on the comp and just trying to understand the going-forward trends. I know there's been some publicity about the 1% price increase or about a $0.05 per beverage to come, and being taken. And I'm just curious as far as the way I understand it, two points for the core beverages in this quarter, one point for Food, one point for Teavana, so we're assuming then no price in 2Q – in fiscal 3Q and all of the reported then sort of 1% price increase would be incremental going forward? Kevin R. Johnson - President, Chief Operating Officer & Director: Yeah, Matthew, one correction I want to add to your comp bridge that you just went through. There was also one point from the refreshment platform. There's one point from Teavana and one point from the refreshment platform. And so, if you add that up and you look inside, there was also then the negative point for blended, and that's how you get the bridge.

And what I would add to that, Matt, is Kevin's comp numbers include pricing for those categories. So on your broader pricing question, the first thing I want to make sure you realize is, as we take price, we look at very carefully using our elasticity models, as you know, we look at it by product, we look at it by geography, and we're very careful to be sensitive to significant changes to customer impact. We're really cognizant of that. And as we've done that over the years, including this year and the most recent pricing changes that we just made, we are not seeing any change in customer attrition. So that's not happening. And then to your core question. As you know over the last few years, we've had one point to two points of price in our comps every quarter. This quarter, in the third quarter, will fall into that one point to two point price range, and the fourth quarter will fall into that one point to two point price range. So there's no acceleration of comp pricing in the guidance that I gave.

Your next question comes from the line of Karen Holthouse with Goldman Sachs. Your line is open. Karen Holthouse - Goldman Sachs & Co.: Hi. Thanks for taking my question. So I'm asking a little bit of the same question as you're looking from this quarter into sort of next quarter and then fiscal 2017. Where are the puts and the takes on the comp algorithm? Is it that Food can re-accelerate or particular categories or does a lot of it come down to this one-to-one marketing and more of a traffic or frequency-driven acceleration? Thanks.

I'll start and then if Matt wants to add. From a product standpoint, the first thing that's going to happen is blended sales will rebound. We obviously don't anticipate another negative 1% comp from blended. In addition, as we look at the Summer 2 platform that Kevin talked about with things like Iced Coconut Milk Macchiato and Mocha Macchiato and the early results from that are quite encouraging. We've got a number of things on the product lineup, Card, Nitro Cold Brew, as well as acceleration of some of the features within Mobile Order & Pay. So later this quarter, we'll get favorites of stores which will make it easier for people in New York and other dense areas to select and save favorite stores, favorite orders, makes it easier to save favorite orders. And when we look at broadly our innovation pipeline, digital product, things that we're doing in the stores with things like Nitro, marketing, there's just a significant amount of momentum already, and then that we have planned as we look forward. And as we get into 2017, the second part of your question, and Matt touched on this, we will further refine our personalization capability to have suggested selling one-to-one as you're building your order with relevant products based upon what you've ordered in the past, daypart, your preferences. So all of that is stacked up, and that's what makes us think we can get to 5% at least as we get into Q4 and try to accelerate as we go into 2017. Howard S. Schultz - Chairman & Chief Executive Officer: There's one more I think significant opportunity. Cliff, do you want to talk about that? Clifford Burrows - Group President-Americas, US & Teavana Region: Yeah, let me just talk, Karen, about a real opportunity that exists playing off or drafting off the work we've done at the Roastery here in Seattle, and that is an opportunity to elevate coffee to a new level within our stores. And that is showing up as a Reserve bar. And we've started to deploy Reserve bars and we will continue to grow that, and it will be a significant opportunity for us to elevate the handcrafted, the artisanal nature of the barista, and you'll start to see that showing up across the country. And that will introduce new beverages which are at a premium, and it will give customers an opportunity to try some of the incredible coffees that are roasted in our Roasteries, in our Roastery here in Seattle.

Your next question comes from the line of R.J. Hottovy with Morningstar. Your line is open.

Thanks. I had a follow-up question on the earlier question about better leverage in the Rewards program. Appreciate the geographic enrollment and personalization goals that you outlined as goals of better leverage in the program. But in the last quarter, you talked about opportunities such as the debit card, potentially the grocery store linkage and other partnerships like Lyft and New York Times as potentially a way to leverage the loyalty program. Just curious if we could get an update on that and the outlook for that the rest of this year and into 2017? Thanks.

Sure. Matt Ryan again here. We are actively at work on that. As you know, we've announced a significant partnership with Chase and there's a core product that we are just trying to figure out when to place on the calendar right now. We're not going to exactly commit to a date because we want to give it the right opportunity to launch across the next year. We're very excited about that, because when Kevin talked about the leveragability of a spend-based program as opposed to a frequency-based program, it allows us to do these kinds of things like award people for everyday spend. And right now it's simply a matter of execution and when we can get it on the calendar and give it the justice that it deserves from a timing perspective.

Your next question comes from the line of Mark Astrachan with Stifel. Your line is open. Mark Astrachan - Stifel, Nicolaus & Co., Inc.: Yeah, thanks. And good afternoon, everybody. Wanted to ask about the global opportunity for expansion of packaged and single-serve coffee? And sort of the puts and takes of building it alone versus partnering with other folks? And then sort of related on the Channel Development business, how should we think about the ramp of the RTD coffee partnerships outside of the U.S. contributing to equity income going forward?

Thank you. Yeah, this is Mike. So as we look at our global opportunity for Channel Development, we've really focused on Ready-to-Drink as being the key driver versus packaged coffee, and a lot of that I think has to do with the strength that we've been able to create in our U.S. business with PepsiCo and the North American Coffee Partnership, and we think that's a more immediate opportunity. And you're right, the success for us is finding the right partners across the globe, and we have essentially done that as we look across our major markets. So within EMEA, we have a partnership with Arla that is quite strong, and we're building our business there in key markets. In Latin America, we just signed a deal with PepsiCo last year to strengthen the business within that region, and we're just starting to ship into new markets and into new channels within the region this quarter. And then within China/Asia Pacific, Japan and China being our key markets, we have key partnerships in Japan, which is our biggest market with Suntory, in Korea with Dong Suh Foods. And then, as we've talked, we have a partnership with Tingyi in China, where we are in the final phases of scaling up both the distribution and manufacturing so that we'll be in the market by the end of this year. So we feel good about the prospects for our Ready-to-Drink business across the globe, and we think that will be the really driver for Channel Development, at least in the near-term.

And that was our last question.

Thank you all very much for joining us today, and we look forward to seeing you on December 7 in New York City. Have a good afternoon, everyone. Howard S. Schultz - Chairman & Chief Executive Officer: Thank you. Bye.

And this concludes Starbucks Coffee Company's 2016 third quarter fiscal year 2016 earnings conference call. You may now disconnect.