starbucks q3 earnings 2020

And perhaps, what you've seen in the markets where the economies maybe opened up earlier, if you're starting to see that business come back, for example, in the southeast or other markets that might have opened earlier than some of the core markets? That's woven into the fabric of how we operate, and partners are rising to the occasion. And then if I look at 4Q, just trying to understand again the comps actually maybe the midpoint of the same or a bit lower in most markets, but are you being conservative again on the EPS? In addition, we estimate the impact of COVID-19 by comparing actual results to our previous forecast. We recognize that markets will experience varying levels of COVID-19 impact until new therapeutics and vaccines are developed, and we are well positioned to navigate this phase of the pandemic. Matthew DiFrisco -- Guggenheim Securities -- Analyst. Thanks for the question. And because they are a company-owned market, we saw that -- saw with that a significant improvement in profit for the month of June compared to our original expectations. And although the margin impacts of partner benefits and inventory reserves are expected to subside considerably in Q4, the leading driver of margin pressure will be continuing to deleverage a fixed costs, such as occupancy and depreciation expense as we work to restore sales. These adverse year-over-year revenue impacts were partially offset by net new store growth of 9% over the past 12 months. A Starbucks Coffee in Harlem is closed, as retail sales suffer record drop during the outbreak of the coronavirus disease (COVID-19) in New York, April 15, 2020. And I think, Kevin, you mentioned the morning routine business is going to be the most difficult to build back. And how you think about product innovation around that? And number three is primarily beverage innovation. We estimate this to be approximately 80% of the margin decline. While nearly half of our sales now comes from Rewards members who are pre-loading their store value cards, we've heard from many more customers that they would like an option to earn rewards when paying directly with cash, credit, debit and select digital wallets. In terms of recession, I'll leave the predictions of economic growth to the economists. Please proceed with your question. You've seen it in our work with our Happy Hour, our Double-Star Days and then the initiation of our summer time beverages, and then the discussion around our plant-based menu. Within the quarter, we saw significant acceleration in the number of customers who downloaded the Starbucks App and joined Starbucks Rewards, totaling 3 million in the quarter and up 17% from Q2. 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 and quarterly report on Form 10-Q. That's the experience in our stores and these different channels we're talking about. But I have a question really on the U.S. business. Durga Doraisamy -- Vice President-Investor Relations. As we believe we are now past the depth of the pandemic and are on a steady path to full recovery, and as we successfully bridged our liquidity needs, we will now return to our normal cadence of investor updates and look forward to sharing our continued progress with our fourth quarter earnings report in October. Well, good afternoon and welcome. And by honoring minimum supplier commitments during periods of depressed sales volumes so they can sustain the supply of our proprietary products and services in support of our ongoing product innovation. Thank you. Starbucks' (SBUX) fiscal third-quarter results are likely to reflect dismal performance of Americas and China. And then, Pat, do you expect the benefit from the qualified payroll credits to be smaller in the fourth quarter than they were in the third quarter? We exited the quarter with 96% of stores open, up from 44% at the beginning of the quarter. And I would also think the digital transactions are more profitable, so that would sort of accelerate that or is there some embedded assumption about reinvestments so that some of these new channels actually aren't as margin accretive as maybe I'm assuming? I think as we see a resurgence of cases, similar to what we've seen in Beijing, that causes a little bit of -- that's what's caused a little bit of the delay by a quarter in China. Good afternoon, my name is Devin, and I will be your conference operator today. Andrew Charles -- Cowen and Company -- Analyst. And in that regard, our digital assets have proven to be a competitive advantage. In May, we launched a new WeChat Mini program with new functionality for WeChat users, including Starbucks Delivers. And I think that's a very positive thing because I think as a company, we've now taken this playbook that was developed in China and adapted for the U.S. and we basically have embedded this into our store protocols and our operating procedures. I guess, from the text it says, I mean, you're seeing growth and it seems to be shifting in the later part of the morning. Thank you. We are shifting more beverage and food menu items to include plant-based options. Patrick Grismer -- Executive Vice President and Chief Financial Officer. These investments totaled approximately $350 million in the quarter and were focused on three key areas. Excluding items, Starbucks lost 46 cents per share, narrower than the loss of 59 cents per share expected by analysts surveyed by Refinitiv. This was a notable sequential improvement to May's comp on a like-for-like basis. In terms of capacity and what we think could help, for instance, our drive-thru. Starbucks (NASDAQ: SBUX) posted a 157.76% decrease in earnings from Q3.Sales, however, increased by 46.92% over the previous quarter to $6.20 billion. You'll see us market for holiday beverage plans. First, our recovery strategy is working, as evidenced by the improving business results across all of our key segments. Market data powered by FactSet and Web Financial Group. Finally, for your calendar planning purposes, please note that our fourth quarter and fiscal year 2020 earnings conference call has been tentatively scheduled for Thursday, October 29, 2020. Why don't I let Roz describe sort of the initiatives we have focused on that morning daypart, and then I'll sort of punctuate a couple of things. That has never been more true than it is today. We have been blending store formats in suburban markets for years where we have complemented traditional Starbucks stores, the third place experience, with drive-thru and mobile order pickup experiences that serve customers' need for convenience. Yes. First of all, morning daypart, as you well described is important to us. So those would be a couple of examples where we see growth that may be margin percentage dilutive, but dollar profit accretive. And then as Roz said, the work they've done on increasing throughput at drive-thru and watching curbside, that just opens up new channels. Starbucks outperformed the category. First, COVID-related emergency response measures in Beijing where Starbucks currently has over 360 locations. Okay, perfect. Revenue was expected to drop 40% to $4.11 billion. And then those members can choose to keep paying with their pre-loaded Starbucks card to earn two stars per $1. And part of that is, I believe, the way that we've navigated this has built trust. So we do expect to see a combination of margin headwinds and tailwinds, but far away the biggest driver of the margin recovery will be the sales recovery. And so that will come forward quicker than planned. One, to expand the funnel on the customer base. And unlike many, many others in the industry, in April, -- yeah, In April, we closed all our stores with the exception of drive-thrus. And as we deliver that, they respond. For the full fiscal year, we expect China's comparable store sales to decline in the range of 15% to 20%, including a 2% favorable VAT impact. Starbucks Announces Q3 Fiscal Year 2020 Results Conference Call. Please proceed with your question. Although the impacts of COVID-19 weighed heavily on our Q3 financial results, we are encouraged by the fact that our sales and profits across all our operating segments recovered more quickly than we expected, and that our very strong balance sheet has allowed us to make significant and important investments in the business for the long-term, while weathering the pandemic. Great. Q3 GAAP EPS of -$0.58; Non-GAAP EPS of -$0.46 Reflecting Material Sales Deleverage and Retail Partner Support. I will now turn the call over to Kevin. 21% % growth in dollar sales, outpacing the coffee category, which grew 13% in the quarter. And we are introducing a new curbside pickup experience that will be available in 700 to 1,000 locations by the end of this quarter, which enables incremental customer business. In addition, we're also seeing that in some of our really dense workplaces, for instance, downtown areas where we have stores where there is more work from home in those geographies, those have been slower to recover. And we expect to be in over 60 markets by the end of this fiscal year. Our Global Coffee Alliance with Nestle combined with our ready-to-drink partners, including PepsiCo and Tingyi, have extended our ability to meet customers where they are, which is particularly important in the current environment. It's important to bear in mind that as we do innovate new channels of distribution at our stores, for example, curbside delivery or as we anticipate the longer term growth of third-party delivery, those channels require incremental costs, but they are necessary in order to capture the incremental sales. These forecasts were created prior to the spread of the virus were based on information available at the time and on a variety of assumptions, which we believe were reasonable, but some or all of which may prove not to be accurate. GAAP results in fiscal 2020 and fiscal 2019 include items that are excluded from non-GAAP results. And the data that we see on customer response is spot on. U.S. same-store sales fell 40% in the quarter. Margins are expected to follow in the next two quarters. Thank you, Roz. Your next question comes from the line of Brian Bittner with Oppenheimer. Executives said that they expect same-store sales to recover more substantially in China and the U.S. by the end of its fiscal first and second quarters, about a year after the crisis began, assuming there are no new sustained waves of infections or major economic disruptions. Earn Rewards when using the Starbucks app and sign-up for Starbucks the activity the... 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Update any of these forward-looking statements or information an industry-leading digital platform and a Rewards that. For long-term sustainable growth business because they had a rather strong improvement in sales % for Q4, we! By comparing actual results to our Starbucks China mobile app roll that.!

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