“We're seeing a strong positive correlation between comp improvement and the easing of COVID restrictions, giving us confidence that we'll see both a strong rebound in sales and improved flow-through once mobility restrictions in China are fully lifted.”

In context

“and get even better at operating and executing at scale. The benefit of our investments in our people and our operations will become increasingly evident in post-COVID quarters and years ahead. COVID-related headwinds in Q3 resulted in Starbucks net revenue in China declining 40% and sales comp declining 44% versus last year. But I'm pleased to report that we saw immediate improvement in traffic and sales following Shanghai's reopening in early June, saw steady sequential improvement in both metrics through the month and exited the quarter with a negative comp of 24% after indoor dining restrictions in Shanghai were partially lifted at the end of June. The improvement was fueled by customers returning to our stores and celebrating the reconnection and familiarity with the Starbucks brand. We're seeing a strong positive correlation between comp improvement and the easing of COVID restrictions, giving us confidence that we'll see both a strong rebound in sales and improved flow-through once mobility restrictions in China are fully lifted. We continued our store expansion in Q3, opening up 107 net new stores and entering three new cities despite the headwinds and now operate 5,761 stores across 228 cities, and we remain on back to have 6,000 stores in China by the end of this year. Our new stores continue to achieve best-in-class returns and profitability. The investments we're making to elevate our customers' digital experience and strengthen their digital connection Starbucks are paying off. Mobile ordering sales mix increased to a record high 47% in Q3, up 13% over prior year and up 4% over Q2 as we adapted to COVID-driven changes in customer behavior. We also continue to invest in product innovation and extending Starbucks coffee leadership and authority in China. As Howard mentioned, Iced Shaken Espresso introduced onl”