Operator: Your next question comes from David Tarantino with Baird. Please state your question.
David Tarantino: Hi. Good afternoon. I have a follow-up question on the commentary related to the longer-term targets. I know we’re going to get more details in November on this. But I think the comments were that you have multiple paths to deliver both the revenue and the earnings targets. And I wanted to focus in on the revenue part of that. I guess if you continue to grow at the rate you’re growing from a unit growth perspective, I think you would need to maintain that comp outlook that you gave previously to get to the revenue guidance, unless I’m missing something. So I guess the question is, are you signaling that maybe the unit growth element could change and the comp element could change and you could still get there? I guess, maybe any clarification on that front would be helpful.
Laxman Narasimhan: Great. Let me take this point on the top line. First of all, Starbucks is an iconic brand with a very strong appeal and durability. If we just look in the last year, the affinity of our brand has strengthened, right? The brand has ranged across consumer segments, across geographies, across occasions. So to your question on top line, we have a historically high number of customers who visit our stores. But it’s also in many of the markets around the world, even as China recovers. We have a strong pipeline of innovation across beverage, across food and equipment, and there are even more opportunities across the world with different formats, as I mentioned earlier, with dayparts and a focus on dayparts and how we can bring more innovation, particularly on the daypart side and with new business models like delivery.
We built this billion-dollar lag, and it’s only now beginning operationally refocused on that and saying, how do we ensure that we continue to support that kind of delivery with an operating model that would actually help. I mentioned earlier that we have terrific capabilities in digital as well as in artificial intelligence and machine learning that we’re just unleashing with even more agility in terms of how we strengthen and scale with digital. And it’s not just our stores but it’s also in the Connect stores, and it’s at Starbucks digital solutions across the world. We have strengthened pricing capabilities. And as we make these investments, we’re going to get even better in terms of revenue management, building on the great work that’s already been done in terms of managing mix, in terms of managing sizing and in managing customization.
We have a lobby that is further opportunity for us in terms of how we grow. So I think just in terms of that, there’s real opportunity. In terms of net store growth, as I mentioned earlier, we do have even more headroom in new store builds, both in the U.S. as well as internationally. Our China number is the milestone to even get greater penetration. And some of the opportunities we see and the unit economics that we see in Asia, Europe, Latin America and Africa is real. And we have a range of formats where we can deliver this third place experience but also deliver experiential convenience powered by digital in an omnichannel way. So I look at its brand, I look at its consumer appeal, I look at its durability, I look at its strength, I look at its range, it feels very good to me that we will get to a revenue growth of 10% to 12%, and by the way, the earnings growth of 15% to 20% over time.
Operator: Your next question comes from Zack Fadem with Wells Fargo. Please state your question.
Zachary Fadem: Hey. Good afternoon. So following up on the long-term algo. If your comps were to slow to a mid-single digit level for whatever reason, would you say that your 15% to 20% EPS is still on the table? And if so, could you talk about what margin and other levers that keep you confident?
