Today, over 30 cross-functional teams are focused exclusively on executing the U.S. reinvention plan you will see take shape over the quarters ahead. Our reinvention efforts will begin with our core U.S. company-owned retail business, and over time, we'll expand across our global footprint. And I think I mentioned this in the last call, that one of the metrics for me personally has always been trying to understand on an annual basis, is our customer getting older or younger. Starbucks will hold a conference call today at 2:00 p.m. Pacific Time, which will be hosted by Howard Schultz, interim ceo, and other members of Starbucks executive leadership team. Thanks. Together, these efforts have provided us the flexibility and muscle we need to continue to operate as efficiently as possible given current market challenges. Can you remind us of the reasons you launched the program at that time? On a year-over-year basis,. Yeah. Thanks. David Paul Morris | Bloomberg | Getty Images, Starbucks CFO Rachel Ruggeri: We're seeing improvements in turnover, partner engagement, Union asks company to extend raises and benefits to Starbucks' unionized stores. And if I could just add, we've already been spending, Peter. Comparable store sales exclude Siren Retail stores. Net earnings attributable to Starbucks decreased 21% to $913 million while EPS dropped 18.6% to $0.79. Also for your calendar planning purposes, please note that our fourth quarter and fiscal year 2022 earnings conference call has been tentatively scheduled for Thursday, November 3, 2022. They have our greatest respect and appreciation as we reinvent the next phase of Starbucks together. And I think the other thing is we've never had as many -- if you look at the national footprint of Starbucks, the multiple footprints in terms of the different types of formats that Starbucks has provides us with an ability to create convenience that we've never had before, specifically in the drive-through. A Division of NBCUniversal. That's inclusive of our floor being at $15 an hour, which goes into effect broadly across the country, effective August 1. 206-318-7100. But the core question is actually on China. Appreciate all the color and the update. Job No. And then just as a follow-up, is there any color you can share in terms of the tweaks you're thinking about to the long-term top or bottom line algorithm? I think when we think about what's coming to FY '23, certainly, we'll share more about that at Investor Day. Looking ahead, however, the International segment may face near-term challenges. Its Q3 FY22 earnings conference call will start today at 2:00 p.m. Pacific Time. Pattern recognition among customers is so different. It will be about 4% next quarter. Since its announcement in May, the company has worked with its licensed operator to exit its business and brand in Russia and to support the nearly 2,000 green apron partners in Russia, including pay for six months and assistance for partners to transition to new opportunities outside of Starbucks. So listen, I think every day that goes by, what's on my mind is the significant challenge economically that people are going through, and we're not taking our success and current engagement with our customers in any way as an entitlement. As I mentioned at the outset, we are looking forward to fully showcasing the power and the opportunity of our reinvention plan that we will unleash at next month's investor day. And I can tell you that the candidates are extremely excited and positive and in agreement with what we're doing in terms of investing ahead of the growth curve, reinventing the partner customer and store experience, and the equity and power of the brand is apparent. Thank you. But I'll turn it over to Frank for a little bit more color. John, this is John Culver. Q3 EPS was $0.84, declining 15% from the prior year but ahead of expectations. Next month, at Investor Day in Seattle, you will see for yourselves how accretive to our business our reinvention plan will be, increasing efficiency, enabling us to seamlessly handle the increasing demand in our U.S. stores and, most of all, elevating our partner, customer and in-store experiences. We also see opportunity with handheld order points. And I think for me, there's no doubt that the morning daypart is going to come roaring back. Starbucks Q3 Fiscal Year 2022 Earnings Conference Call. But I think those of you who do not come will miss out on really seeing and understanding the breadth of the level of innovation and modernization that we're going to bring to the company and how quickly it's going to come. That significantly demonstrates this $1 billion wage investment that we are making this fiscal year in our people. Your next question comes from Peter Saleh with BTIG. So we saw an all-time high in terms of member spend for our Rewards customers. And once all the COVID restrictions are lifted, we're going to accelerate our growth once again.
What began as informal partner meeting soon evolved into focused co-creation sessions where Starbucks partners and leaders collaborated on how best to reimagine the next Starbucks. In June, the company expanded U.S. healthcare benefits to ensure partners (employees) have access to quality healthcare.
Toast to This Early Black Friday Wine Delivery Deal. Our end game is a greater focus as a single company with agility and empowered organization. And that gives us a real outlook that as travel continues, there's more growth ahead in these regions. And when you look at our average weekly sales, we were 30% up versus pre-pandemic levels, OK? Represents costs associated with the Global Coffee Alliance with Nestl and a change in estimate relating to a transaction cost accrual. We're going to continue to go deep and filling with more innovative formats to deliver the perfect and most relevant Starbucks Experience for our customers. Channel Development
Sure. And we are seeing a trend uptick in customer experience scores. And as we look at this area of the business, labor, staffing, retention, all those things, the metrics we're tracking is turnover, hours of operation, fully staffed stores and obviously, operating with Mobile Order & Pay open full time. I can take that question. As a reminder, Starbucks 2022 Investor Day will be held on Tuesday, September 13, 2022. In June, the company announced the creation of the Heritage Market, connecting three of the company's most iconic and visited stores and partners who lead them. As customers begin to normalize routines, we feel transactions will come up. I know you guys talked about peak ROIC prior to the restrictions, but just curious for your updated thoughts. The premium customized cold coffee opportunity ahead for Starbucks all around the world is simply enormous. Corporate and other general and administrative expenses, total operating expenses and operating loss for the quarter and three quarters ended June 27, 2021, have been restated to conform with current period presentation. COVID-related headwinds in Q3 resulted in Starbucks net revenue in China declining 40% and sales comp declining 44% versus last year. No company in the world even remotely approaches Starbucks' ability to source, blend, roast and craft the world's best coffees. Transactions are always an opportunity. Mobility restrictions and lockdowns were implemented faster and eased more slowly under China's zero COVID policy. Starbucks last posted its quarterly earnings data on July 26th, 2021. It would just seem like there's some risk in terms of that hiring with the perhaps reinvention plan already laid out. Deb Lefevre -- Executive Vice President, Chief Technology Officer. But as I've shared before, we still achieved record-high connection scores. After submitting your information, you will receive an email. And certainly the candidates who we are looking have a world view of the economy, geopolitical issues and understanding the power of the Starbucks brand and, most importantly, the humanity of the company. Here's what the company reported for the quarter ended July 3 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv: The coffee giant reported fiscal third-quarter net income attributable to Starbucks of $912.9 million, or 79 cents per share, down from $1.15 billion, or 97 cents per share, a year earlier. Net revenues for the North America segment grew 13% over Q3 FY21 to $6.1 billion in Q3 FY22, primarily driven by a 9% increase in company-operated comparable store sales, driven by an 8% increase in average ticket and a 1% increase in transactions, net new store growth of 2% over the past 12 months and strength in our licensed store sales. Howard, you mentioned no measurable reduction in customer spending or trade down. Just to give a little more texture because the strength was across all the regions. We have to earn it every day. Just to give you a few data points, we hired a record number of partners this fiscal year thus far. And lastly, I've committed myself to stay as long as necessary to ensure the fact that the new CEO has a soft landing in the company, that we have a long immersion process, and then I transition on the board so I can mentor and help the next CEO. This process is indicative of a new and wide-ranging approach to democratizing innovation at Starbucks. There's a shift in consumer behaviors. The company posted 19% same store comp growth in Q3 and reported sequential improvement on every key metric on a two-year basis, including total revenue growth, store traffic recovery and margin expansion. Starbucks (NASDAQ:SBUX) Earnings Information. Our path forward is being informed by tens of thousands of daily customer experiences and our partner stories, ideas and dreams that have all helped shape over the past several months through on-hand collaboration sessions, digital surveys, live open forums and in direct dialogue with our key leaders. I'm just trying to understand the level of investment you might need in 2023. Cold, obviously, was the biggest contributor. and Integration-
[Operator instructions] Your first question comes from Jeffrey Bernstein with Barclays. This article is a transcript of this conference call produced for The Motley Fool. Good afternoon. And what we've been able to do as we've hired partners is we've been able to reduce the number of open positions and thus, in turn, increase the number of operating hours that our stores are open. But core to Starbucks culture is the requirement that we always speak with each other with honesty, transparency and without judgment or fear of appraisal. I can start with in terms of the difference between our Rewards customers and our non-Rewards customers is what we saw is, as John spoke about, our customer counts reached an all-time high this quarter, and that was both in SR and non-SR. Our SR rewards customers increased greater relative to our non-Rewards, but both groups increased. Image source: The Motley Fool. Asia Pacific, also very strong strength, double-digit revenue growth. STARBUCKS CORPORATION
Our non-GAAP financial measures of non-GAAP general and administrative expenses (G&A), non-GAAP operating income, non-GAAP operating income growth, non-GAAP operating margin, non-GAAP effective tax rate and non-GAAP earnings per share exclude the below-listed items and their related tax impacts, as they do not contribute to a meaningful evaluation of the companys future operating performance or comparisons to the company's past operating performance. Nestl transaction and integration-related costs. But most importantly, traffic in our Italy retail stores is largely local customer driven. We also expect to roll out both the universal tipping and a new recognition and badging platform by calendar year-end 2022.
Yeah. The company's guidance remains suspended for the balance of this fiscal year. And our performance demonstrates that the Starbucks Experience is more relevant and important than ever in today's unsettled world. We're very bullish on our business right now just in terms of the overall growth prospects and the number of customers that are walking in our doors each and every day. So that's one big piece of it. My title is Alex, and I can be your convention operator immediately. We have more work to do, but we are making progress. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. And then just a couple more data points I would add to this is, first off, our average weekly sales are at an all-time high. In summary, we firmly believe that when you combine the five strategic reinvention areas, bolstered by a rich tapestry of aligned initiatives and the reaffirmation of the importance of coffee, you will begin to see the emergence of a Starbucks that once again drives outsized performance financially, outsized impact socially and creates a work environment where all of our partners feel greater personal agency and are providing a personalized career path that matches their unique needs and aspirations. We've also created newer formats and more points of stores so that customers can meet us where they need us to be. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. In Q3, China faced its most severe COVID disruption since the onset of the pandemic. So improvements in the cold beverage station and, in particular, cold beverage labelers, which are dedicated to that station. Each of these substantial actions are part of a multiphase path to reinventing the retail partner experience that we expect will have a direct positive effect on partner retention, customer connection and essential brand affinity metrics. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates, stores identified for permanent closure and Siren Retail stores. Now moving on to the balance of fiscal year '22. Includes only Starbucks company-operated stores open 13 months or longer. including Starbucks Annual Report on Form 10-K for the fiscal year ended September 27, 2020. In addition to that, we're also spending to be able to ensure that we're elevating the experience for our customers, the combination of that we see as a great foundation to where we head in the future. Other restaurant companies, including McDonald's and Chipotle Mexican Grill, have seen low-income consumersvisit less frequently or spend less as higher gas and grocery bills squeeze their budgets. And in Japan, our third largest market globally, the comps accelerated to their strongest point this year. Additionally, the majority of these costs will be recognized over a finite period of time. With that, we will open the call to Q&A. Active Starbucks Rewards membership in Q3 totaled 27.4 million members, up 3.2 million or 13% year over year and 3% sequentially. We've got, in my view, an extraordinary slate of candidates who are very interested in the job. There's still good weather at that point. And it's not a question of if. Specifically, it's pointed at ensuring that we have better uptime in our stores so that the equipment is working and the partners are able to serve the customers and the demand. I'll answer the second part of the question. I want to come back to the reinvention plan. I will now provide segment highlights for Q3. In addition, our North American licensed stores business, now 7,000 stores strong and growing, also posted strong results with 24% revenue growth in the quarter. All numbers referenced on today's call are on a non-GAAP basis, unless otherwise noted or if there's a non-GAAP adjustment related to the metric. Transaction and integration-related costs. Q3 consolidated operating margin contracted 350 basis points from the prior year to 16.9%, primarily driven by ongoing inflationary headwinds, significant investments in labor, including enhanced store partner wages and deleverage related to COVID lockdowns in China. And maybe similarly, I know you mentioned in China, I think, customer connectivity scores are at an all-time high. Additionally, we remain committed to sustaining an attractive dividend and continue to target an earnings payout ratio of approximately 50%, which is near the top end of growth companies of our size and scale. This includes introduction of Starbucks varietals onto Nespresso's digital sales platform, a channel that does not presently exist for us and represents a massive global opportunity. I apologize for not addressing it then. A lot of interest that we've had already, but please try and make it to Seattle. 2021 Starbucks Corporation. We delivered record-breaking revenue performance during the quarter from continued strength in customer demand globally, balanced with our ability to execute investments despite macroeconomic and operational headwinds. 1 share position in the United States at home, retail and CPG coffee channels, we are in the very early stages of leveraging the Starbucks brand and Nestle's Global Coffee platforms and significant distribution capabilities to create new super premium coffee occasions on Nespresso platform all around the world. Partners at these stores will be uniquely trained in the companys heritage and hometown to offer regular tours and immersions for customers. Shares of the company rose more than 1% in extended trading. That will share perspective on FY '23, as well as a longer-term time period. Related Costs, Transaction and
Wedbush also issued estimates for Starbucks' Q3 2023 earnings at $0.98 EPS, Q4 2023 earnings at $0.94 EPS . These measures should not be considered in isolation or as a substitute for analysis of the companys results as reported under GAAP. Sara Senatore -- Bank of America Merrill Lynch -- Analyst. Dies geschieht in Ihren Datenschutzeinstellungen. Michael Conway -- Group President of International and Channel Development. Get this delivered to your inbox, and more info about our products and services. Operating income increased to $1,330.1 million in Q3 FY22, up from $1,304.3 million in Q3 FY21. Cold drinks are also popular with Gen Z customers, a key demographic for the coffee chain, according to Schultz. And we are seeing huge opportunity for automated ordering as we are fully deployed across all food and merchandise, across all stores in the U.S. And we are quickly moving toward getting that up and running as it relates to the beverage and the remaining products in our stores. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information. You layer all of that on what I said earlier, and that is the morning daypart coming back with velocity, and I think all bets are off in terms of the operating leverage that we're going to get again. We continue to put our partners first, ensuring their safety and well-being and compensating them fully even when our stores were closed. New items, including our Lime-Frosted Coconut Bar and staples such as the Grilled Cheese Sandwich, both performed well. . Tiffany Willis
In North America, overall, the combination of customer shift toward premium cold beverages, increased customization, strategic decisions on our part with regard to beverage and food and modifier pricing and a 19% increase in food sales, driving net revenues up 13%. We're going to share with you with great specificity what we're going to -- how we're going to reinvent the store model, both in terms of the customer journey and the equipment that is going to significantly give us capacity that we don't have and make our people's -- make our partners' job much easier. Moving on to channel development.