Operator: Good afternoon. My name is Mike and I will be your conference operator today. At this time, I would like to welcome everyone to Starbucks Coffee Company's First Quarter Fiscal Year 2014 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.
Thank you. Ms. DeGrande, you may begin your conference.
JoAnn DeGrande - IR: Thank you, Mike. Good afternoon. This is JoAnn DeGrande, Vice President of Investor Relations for Starbucks Coffee Company. Joining me on the call to discuss our Q1 results are Howard Schultz, Chairman, President and CEO and Troy Alstead, CFO; and also with us today are John Culver, Group President of China, Asia Pacific, Channel Development and Emerging Brands; Adam Brotman, Chief Digital Officer and Curt Garner, Chief Information Officer.
This conference call will include forward-looking statements, which are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. 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. Starbucks assumes no obligation to update any of these forward-looking statements or information. This conference call is being webcast and an archive of the webcast will be available on our website at investor.starbucks.com.
Please also note that Starbucks 2014 Annual Meeting of Shareholders will be held in Seattle at 10 a.m. Pacific Time on Wednesday, March 19, that meeting will also be available via webcast.
With that, I'd like to turn the call over to Howard Schultz. Howard?
Howard Schultz - Chairman, President and CEO: Thank you, JoAnn, and welcome to everyone on today's call. I'm very pleased to discuss the record Q1 results that Starbucks announced today. Strong operating and financial performance from all business segments around the world and increased operating leverage and store efficiency enables us to deliver record quarterly revenue of $4.2 billion, record quarterly operating margin of 19.2%, record quarterly operating income of $814 million and record quarterly EPS of $0.71 per share.
Strong customer response to food and beverage innovation contributed to solid Q1 comp sales growth of 5%, consisting with our previous mid-single-digit guidance and representing our 16th consecutive quarter of 5% comps or greater.
Noteworthy is that the 5% comp growth delivered by our important EMEA region with over 2,000 stores was the strongest growth in more than three years, demonstrating the success of our strategy to transform our EMEA business based on the learnings from our U.S. transformation.
Also noteworthy, is that our Q1 U.S. comps were approximately twice the national retail sales average during holiday shopping period this season. And that our Q1 results do not reflect the significant future sales benefit from the year-over-year increase of $230 million in deferred revenue over $1 billion resulting from extremely strong new Starbucks Gift Card activation and Starbucks Card reloads in Q1.