Operator: Thank you. Your next question comes from Joshua Long with Stephens. Please state your question.
Joshua Long: Great. Thank you for squeezing me in. A couple of times in your prepared commentary, you referenced somewhat would sound like to be normalizing demand within the at-home coffee channel within Channel Development. So just curious if you could unpack that a little bit. I’m just curious if you’re seeing shifts within the portfolio on that side or if that’s kind of an ongoing shift back into kind of retail brick-and-mortar as we get back to kind of return to office or just additionally, any sort of commentary you can provide there in terms of how you’re attacking that and capturing share as the chips continue to unfold.
Laxman Narasimhan: Right. We have very strong share in out-of-home coffee. I think we’re tied for #1 so we feel good about that. At the same time, what you are seeing with the customer is the customer is becoming more on-the-go. And what you are seeing with that is if you stop looking at channels where we have products like we have with our North American coffee partnership or frankly, our stores or our licensed stores, we’re clearly benefiting from more from customers on the go. So you see some of that shift take place. But at-home coffee, our shares are very strong. Go ahead, please.
Rachel Ruggeri: But I would add that we are seeing a balance in the portfolio. So that’s one of the things we’re encouraged by is that while we are seeing consumer behavior shift some, we’re seeing an increase in our ready-to-drink both domestically and internationally. And that’s helping to support the margin expansion we saw in this quarter and the mid-40s margin that we’re guiding to on a full year basis. So I would say in this case, it’s the strength of the diversified portfolio that’s working to our advantage.
Operator: Your next question comes from Danilo Gargiulo with Bernstein. Please state your question.
Danilo Gargiulo: Just a question on the Siren System in the United States. How many stores have the Siren System today? And is the number on track with your internal expectations? And what kind of uplift in productivity margin is this initial rollout hinting at?
Laxman Narasimhan: Rachel?
Rachel Ruggeri: Yeah. From a Siren System standpoint, we’re in the — just the testing phase today. We’re on track to be able to launch in conjunction with our renovations in new stores next year. And next year, we expect to be less than 10% of our stores will have the Siren System, reaching about 40% of our stores by the year 2026. And so we’re encouraged by the progress we’re seeing, we’re seeing good results, and we do expect it will help lead to margin expansion in the future. It will be one of the many, what I’d say, equipment investments we’re making as well as the investments we’re making in the staffing and scheduling within our stores as well as the overall operational excellence focus that the team has. The combination of all of that in North America will lead to a more stabilized production environment, which will help drive margin expansion well into the future.
And so we’re encouraged by what we’re seeing today and we’re looking forward to furthering the launch.
Laxman Narasimhan: Just one thing I’d add to is our pipeline of equipment innovation is very strong. And the way we manage the portfolio, the way we manage the pipeline is very strong. And if you look at some of the commitments that we have made around investments like the portable cold foam blender, it’s one of the fastest rollouts in our history in terms of how it’s reached all our stores. So when we have them ready, when we do the renovations, when we have new stores built in automatically, they are actually getting the Siren System. And I feel very good about the way we are managing the portfolio of investments that we are making in this area.
