Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

f54ae2539f444beebe73668d29db77e63cf066f69258933ab99e15eae482c458

8277308878c08c35c07c4b2e6643884aa40591e6bb29f905798239b57e9e94c8

| Metric (in millions)                                      | Q1 2023       | Q2 2023       | Q3 2023       | Q4 2023       | Q1 2024       | Q2 2024       | Q3 2024       | Q4 2024       |
|-----------------------------------------------------------|---------------|---------------|---------------|---------------|---------------|---------------|---------------|---------------|
| Revenue Deferred from Card Activations, Reloads, and Stars| $4,223.4  **[0000829224-23-000017_sbux-20230101.htm:17]** | $3,416.0  **[0000829224-23-000037_sbux-20230402.htm:21]** | $3,641.3  **[0000829224-23-000044_sbux-20230702.htm:20]** | $4,687.2  **[0000829224-24-000013_sbux-20231231.htm:17]** | $4,687.2  **[0000829224-24-000013_sbux-20231231.htm:17]** | $3,456.5  **[0000829224-24-000024_sbux-20240331.htm:20]** | $3,833.4  **[0000829224-24-000042_sbux-20240630.htm:19]** | N/A           |
| Revenue Recognized from Card and Stars Redemptions        | $3,714.1  **[0000829224-23-000017_sbux-20230101.htm:17]** | $3,778.4  **[0000829224-23-000037_sbux-20230402.htm:21]** | $3,662.9  **[0000829224-23-000044_sbux-20230702.htm:20]** | $4,098.4  **[0000829224-24-000013_sbux-20231231.htm:17]** | $4,098.4  **[0000829224-24-000013_sbux-20231231.htm:17]** | $3,792.4  **[0000829224-24-000024_sbux-20240331.htm:20]** | $3,870.2  **[0000829224-24-000042_sbux-20240630.htm:19]** | N/A           |

7c53f2ce430b04433877694ff2a0d9345c114bea338289d7c1ecf246eda979b8

| Metric [Unit: USD Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Beverage**               | 5,173.0  **[0000829224-23-000017_sbux-20230101.htm:20]**  | 5,226.9  **[0000829224-23-000037_sbux-20230402.htm:25]**  | 5,587.9  **[0000829224-23-000044_sbux-20230702.htm:24]**  | N/A     | 5,695.9  **[0000829224-24-000013_sbux-20231231.htm:20]**  | 5,160.0  **[0000829224-24-000024_sbux-20240331.htm:24]**  | N/A     | 21,883.9 (FY)  **[0000829224-24-000057_sbux-20240929.htm:122]**  |
| **Food**                   | 1,565.9  **[0000829224-23-000017_sbux-20230101.htm:20]**  | 1,590.9  **[0000829224-23-000037_sbux-20230402.htm:25]**  | 1,704.5  **[0000829224-23-000044_sbux-20230702.htm:24]**  | N/A     | 1,757.1  **[0000829224-24-000013_sbux-20231231.htm:20]**  | 1,580.0  **[0000829224-24-000024_sbux-20240331.htm:24]**  | N/A     | 6,749.2 (FY)  **[0000829224-24-000057_sbux-20240929.htm:122]**  |
| **Other**                  | 1,975.0  **[0000829224-23-000017_sbux-20230101.htm:20]**  | 1,902.0  **[0000829224-23-000037_sbux-20230402.htm:25]**  | 1,875.9  **[0000829224-23-000044_sbux-20230702.htm:24]**  | N/A     | 1,972.3  **[0000829224-24-000013_sbux-20231231.htm:20]**  | 1,820.0  **[0000829224-24-000024_sbux-20240331.htm:24]**  | N/A     | 7,543.1 (FY)  **[0000829224-24-000057_sbux-20240929.htm:122]**  |
| **Channel Development**    | 478.2  **[0000829224-23-000017_sbux-20230101.htm:30]**    | N/A     | 448.8  **[0000829224-23-000044_sbux-20230702.htm:24]**  | 486.1  **[0000829224-23-000051_sbux-1012023xexhibit991.htm:2]**  | 448.0  **[0000829224-24-000011_sbux-12312023xexhibit991.htm:1]**  | 418.2  **[0000829224-24-000023_sbux-3312024xexhibit991.htm:2]**  | 438.3  **[0000829224-24-000041_sbux-6302024xexhibit991.htm:2]**  | 465.4  **[0000829224-24-000051_sbux-9292024xexhibit991.htm:2]**  |
| **Corporate and Other**    | 4.3  **[0000829224-23-000017_sbux-20230101.htm:30]**      | N/A     | 8.8  **[0000829224-23-000044_sbux-20230702.htm:24]**    | N/A     | 10.3  **[0000829224-24-000013_sbux-20231231.htm:20]**  | 7.5  **[0000829224-24-000024_sbux-20240331.htm:24]**  | 16.8  **[0000829224-24-000042_sbux-20240630.htm:23]**  | N/A     |

4449a52fc47d277685c4b9d27082401b8ec6f6241416d0d14726f7f1eb2c98b1

29f00cf9592d887e939dbd03bb929b8f2187a4664b83bdbbca5e93e481de7378

| Metric [USD Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| North America        | **6,600**  **[SBUX_3226633_6]** **[0000829224-23-000015_sbux-112023xexhibit991.htm:1]** **[0000829224-23-000017_sbux-20230101.htm:26]**  | **6,400**  **[SBUX_3248684_6]** **[0000829224-23-000035_sbux-422023xexhibit991.htm:2]** **[SBUX_3248684_7]**  | **6,700**  **[0000829224-23-000042_sbux-722023xexhibit991.htm:1]** **[0000829224-23-000042_sbux-722023xexhibit991.htm:0]** **[0000829224-23-000042_sbux-722023xexhibit991.htm:2]**  | **6,900**  **[SBUX_3363603_5]** **[0000829224-23-000051_sbux-1012023xexhibit991.htm:1]**  | **7,120.7**  **[0000829224-24-000011_sbux-12312023xexhibit991.htm:1]**  | **6,380.0**  **[0000829224-24-000023_sbux-3312024xexhibit991.htm:1]**  | **6,816.7**  **[0000829224-24-000041_sbux-6302024xexhibit991.htm:1]**  | **6,691.9**  **[0000829224-24-000051_sbux-9292024xexhibit991.htm:1]**  |
| International        | **1,700**  **[SBUX_3226633_7]** **[0000829224-23-000015_sbux-112023xexhibit991.htm:1]** **[0000829224-23-000017_sbux-20230101.htm:26]**  | **1,900**  **[SBUX_3248684_8]** **[0000829224-23-000035_sbux-422023xexhibit991.htm:2]** **[SBUX_3248684_7]**  | **2,000**  **[0000829224-23-000042_sbux-722023xexhibit991.htm:1]** **[0000829224-23-000042_sbux-722023xexhibit991.htm:0]** **[0000829224-23-000042_sbux-722023xexhibit991.htm:2]**  | **2,000**  **[SBUX_3363603_5]** **[0000829224-23-000051_sbux-1012023xexhibit991.htm:1]** **[0000829224-23-000051_sbux-1012023xexhibit991.htm:2]** **[0000829224-23-000051_sbux-1012023xexhibit991.htm:0]**  | **1,846.3**  **[0000829224-24-000011_sbux-12312023xexhibit991.htm:1]**  | **1,757.3**  **[0000829224-24-000023_sbux-3312024xexhibit991.htm:1]**  | **1,842.1**  **[0000829224-24-000041_sbux-6302024xexhibit991.htm:1]**  | **1,893.2**  **[0000829224-24-000051_sbux-9292024xexhibit991.htm:2]**  |

651e7228e4ac6c1e0a1579736199ef4bd4385dcc9b75d37761020eb9f4b21be9

Starbucks Corporation is a leading global roaster, marketer, and retailer of specialty coffee, operating in 87 markets worldwide. The company sells high-quality coffees, teas, and other beverages, along with a variety of food items through its company-operated stores. Additionally, Starbucks licenses its trademarks through other channels, such as licensed stores and grocery and foodservice partnerships, primarily through the Global Coffee Alliance with Nestlé **[0000829224-24-000057_sbux-20240929.htm:5]** **[0000829224-24-000057_sbux-20240929.htm:86]**.

1. **Beverages** - Offers a wide range of high-quality coffees, teas, and other beverages, which are the primary revenue drivers.
2. **Food Items** - Provides a variety of food options, complementing its beverage offerings.
3. **Other Products** - Includes packaged and single-serve coffees and teas, royalty and licensing revenues, and beverage-related ingredients.
4. **North America Segment** - Encompasses operations in the U.S. and Canada, contributing significantly to the company's overall revenue.
5. **International Segment** - Covers markets such as China, Japan, and Europe, expanding Starbucks' global presence.
6. **Channel Development Segment** - Focuses on packaged coffee and ready-to-drink beverages, extending Starbucks' reach beyond its stores.

07c0dbe27298e7e3fc4b04be760124cd7ffea0d8f26dda9d5171a7cd31506359

1. You emphasized the need to ensure high-quality, handcrafted beverages are prepared quickly and handed directly to customers by baristas; how do you plan to address staffing issues and bottlenecks to improve operational efficiency during peak hours?  **[SBUX_3403800_0]** 
2. With the acknowledgment that Mobile Order & Pay has been overwhelming the café experience, what specific strategies are you implementing to refine this service without compromising customer convenience?  **[SBUX_3403800_1]** 
3. You mentioned the necessity to fix your pricing architecture and simplify an overly complex menu; how will these changes impact your product offerings and the overall customer perception of value?  **[SBUX_3403800_1]** 
4. Given the challenges in returning Starbucks China to growth and improving international business performance, what are your plans to address these international market issues, and what timelines are you anticipating for improvement?  **[SBUX_3403800_1]** 
5. You stated that focusing on Starbucks Rewards customers has led to neglecting communication with all customers; how will your marketing approach change to re-engage with the broader customer base, and what metrics will you use to measure success?  **[SBUX_3403800_1]** 

5403934c3d1734eafa09abf45829a65318dd97e61079252439da9ac0c2e21d7f

| Name            | Position                                           | Start Date        | Short Bio                                                                                                                                                                                                                                                                                                                                                       |
|-----------------|----------------------------------------------------|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Brian Niccol    | Chairman and Chief Executive Officer               | September 9, 2024 | Brian Niccol was appointed as the Chairman and Chief Executive Officer of Starbucks Corporation, effective September 9, 2024. Before joining Starbucks, Niccol served as the CEO and Chairman of Chipotle Mexican Grill, Inc. His career includes leadership roles at Taco Bell and Pizza Hut, and he began his career in brand management at Procter & Gamble  **[0000829224-24-000057_sbux-20240929.htm:10]** **[0001193125-24-200724_d848513dex991.htm:0]** **[0001193125-24-200724_d848513d8k.htm:1]** . |
| Rachel Ruggeri  | Executive Vice President, Chief Financial Officer  | 2021              | Rachel Ruggeri joined Starbucks in 2001 and was named Executive Vice President and Chief Financial Officer in 2021. She is responsible for the global finance function. Prior to her promotion, she served as Senior Vice President of Americas and held various leadership roles in finance both within and outside Starbucks  **[0000829224-24-000057_sbux-20240929.htm:10]** **[0000829224-23-000058_sbux-20231001.htm:11]** .                                |
| Brady Brewer    | Chief Executive Officer, Starbucks International   | April 2024        | Brady Brewer joined Starbucks in 2001 and has served as Chief Executive Officer, Starbucks International since April 2024. He is responsible for teams across various international regions and Global Channel Development. Previously, he was Starbucks Executive Vice President and Chief Marketing Officer  **[0000829224-24-000057_sbux-20240929.htm:10]** .                                                   |
| Sara Kelly      | Executive Vice President, Chief Partner Officer    | 2022              | Sara Kelly joined Starbucks in 2001 and was named Executive Vice President and Chief Partner Officer in 2022. She is responsible for helping partners realize their career potential and building global partner capability. She previously served as Senior Vice President, Talent & Partner Experience  **[0000829224-24-000057_sbux-20240929.htm:11]** **[0000829224-23-000058_sbux-20231001.htm:10]** .                                                     |
| Brad Lerman     | Executive Vice President, Chief Legal Officer      | April 2024        | Brad Lerman joined Starbucks in April 2023 as Executive Vice President and General Counsel and has served as Chief Legal Officer since April 2024. He leads the company's Legal and Corporate Affairs organization. Before Starbucks, he held senior legal positions at Medtronic plc and Fannie Mae  **[0000829224-24-000057_sbux-20240929.htm:11]** **[0000829224-23-000058_sbux-20231001.htm:11]** .                                                        |
| Mellody Hobson  | Lead Independent Director                          | 2005              | Mellody Hobson has been a director at Starbucks since 2005 and has served as the chair of the board since March 2021. She is the Co-Chief Executive Officer, President, and Director of Ariel Investments, LLC, and has served on the boards of JPMorgan Chase & Co. and The Estée Lauder Companies Inc.  **[0001193125-24-014772_d523441ddefc14a.htm:35]** **[0000829224-23-000007_a2023proxystatementfinal.htm:23]** .                                                     |
| Daniel Servitje | Director                                           | January 9, 2024   | Daniel Servitje is the CEO, President, and Chairman of Grupo Bimbo SAB de CV. He joined the Starbucks board as a director on January 9, 2024, bringing extensive experience in running multinational food companies and growing international consumer brands  **[0001193125-24-014772_d523441ddefc14a.htm:9]** **[0001193125-24-006282_d523441dprec14a.htm:31]** .                                                                                              |
| Neal Mohan      | Director                                           | January 9, 2024   | Neal Mohan is the CEO of YouTube and has been serving as a Director at Starbucks since January 9, 2024. He brings valuable insights from his experience leading a major video distribution platform and his previous roles at Google and DoubleClick  **[0001193125-24-014772_d523441ddefc14a.htm:38]** **[0001193125-24-026715_d690184ddefa14a.htm:3]** **[0001193125-24-014772_d523441ddefc14a.htm:26]** .                                                                                                   |
| Mike Sievert    | Director                                           | January 9, 2024   | Mike Sievert is the CEO, President, and Director of T-Mobile US, Inc. He has been serving as a Director at Starbucks since January 9, 2024. Sievert has extensive executive leadership experience, providing critical guidance on marketing and positioning  **[0001193125-24-014772_d523441ddefc14a.htm:44]** **[0001193125-24-026715_d690184ddefa14a.htm:3]** **[0001193125-24-014772_d523441ddefc14a.htm:9]** .                                                                                             |
| Wei Zhang       | Director                                           | October 1, 2023   | Wei Zhang is a Director at Starbucks Corporation, having joined the board on October 1, 2023. She is the former Senior Advisor and President of Alibaba Pictures Group, with extensive experience in e-commerce, digitization, media, and entertainment  **[0001193125-24-014772_d523441ddefc14a.htm:45]** **[0001193125-24-026715_d690184ddefa14a.htm:4]** **[0001193125-24-014772_d523441ddefc14a.htm:15]** .                                                                                               |

9dec8f9d8a9b2d8be5cd6ce2721ea06d8898708798399a4af7929055e244db1e

e7fddf2a74af9dc40df3aceae30d31777124aad75c29983177259270b4fe913d

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | March 15, 2022  **[0000829224-24-000057_sbux-20240929.htm:116]**  |
| End Date/Duration        | N/A                |
| Total additional amount  | Up to 40 million shares  **[0000829224-24-000057_sbux-20240929.htm:116]**  |
| Remaining authorization amount | 29.8 million shares as of September 29, 2024  **[0000829224-24-000057_sbux-20240929.htm:116]**  |
| Details                  | Program was temporarily suspended on April 4, 2022, and resumed in the first quarter of fiscal 2023  **[0000829224-24-000057_sbux-20240929.htm:116]**  |

84ec84912d0642c6f1566078828e5fbd8fd646521a0d061e621a24deed0e7e60

aee987662f2d9a65d360a5727446c83b8a78597cd9ea9e1f5f41b976ae665e5e

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: N/A
- **Guidance**: The documents do not provide specific guidance metrics from the Q4 2024 earnings call for Starbucks. However, the company is focused on returning to growth in the U.S. and internationally, with emphasis on improving store operations, enhancing customer experience, and driving product innovation  **[SBUX_3403800_1]** **[SBUX_3403800_0]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Full Year 2024 Guidance**: Reaffirmed all metrics of their full year 2024 guidance  **[SBUX_3395050_8]** .
  2. **Comparable Store Sales**: Expected to be flat to low single digit for the year, with a specific range of a low single digit decline to flat  **[SBUX_3395050_14]** .
  3. **G&A Expenses**: Expected to remain closer to 6% of revenue in the second half of the fiscal year, down from more than 7% in the first half  **[SBUX_3395050_7]** .
  4. **Efficiency Efforts**: Aiming for $4 billion in efficiencies over the next four years, up from an initial goal of $3 billion  **[SBUX_3395050_7]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Global Revenue Growth**: Revised to low single digits from 7% to 10%  **[SBUX_3381569_11]** .
  2. **Global and U.S. Comparable Store Sales**: Expected to be a low single-digit decline to flat  **[SBUX_3381569_11]** .
  3. **China Comparable Store Sales**: Expected to see a single-digit decline  **[SBUX_3381569_11]** .
  4. **Global Net New Store Growth**: Approximately 6%  **[SBUX_3381569_11]** .
  5. **U.S. Store Count Growth**: Expected to grow by approximately 4%  **[SBUX_3381569_11]** .
  6. **China Store Growth**: Anticipated to be approximately 12%  **[SBUX_3381569_11]** .
  7. **Operating Margin Growth**: Expected to be approximately flat  **[SBUX_3381569_11]** .
  8. **EPS and Non-GAAP EPS Growth**: Expected to be flat to low single digits  **[SBUX_3381569_11]** .
  9. **Full Year Effective Tax Rate**: Expected to be in the mid-20% range  **[SBUX_3381569_11]** .
  10. **Capital Expenditures (CapEx)**: Expected to be approximately $3 billion  **[SBUX_3381569_11]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Global Revenue Growth**: Expected in the range of 7% to 10%  **[SBUX_3371287_9]** .
  2. **Global and U.S. Comparable Store Sales Growth**: Expected in the range of 4% to 6%  **[SBUX_3371287_9]** .
  3. **China Comparable Store Sales Growth**: Expected to be in the low single digits  **[SBUX_3371287_9]** .
  4. **Global Store Growth**: Expected to be approximately 7%  **[SBUX_3371287_9]** .
  5. **Operating Margin Expansion**: Expected on a full-year basis  **[SBUX_3371287_9]** .
  6. **EPS and Non-GAAP EPS Growth**: Expected in the range of 15% to 20%  **[SBUX_3371287_9]** .
  7. **Effective GAAP and Non-GAAP Tax Rates**: Expected in the mid-20% range  **[SBUX_3371287_9]** .
  8. **Channel Development Segment Operating Margin**: Expected to expand to the high 40% to low 50% range  **[SBUX_3371287_8]** .

f1f370f30ee8c825397a5363c6bcfc1cba73852cbda36cb3a13a05ec927398d7

- Specialty coffee retailers and shops: Primary competitors for coffee beverage sales, chosen by customers based on product quality, brand reputation, service, convenience, and price  **[0000829224-24-000057_sbux-20240929.htm:17]** .
- Large competitors in the quick-service restaurant sector: Compete directly with Starbucks in the coffee beverage market  **[0000829224-24-000057_sbux-20240929.htm:17]** .
- Well-established and start-up companies in international markets: Compete with Starbucks for coffee beverage sales  **[0000829224-24-000057_sbux-20240929.htm:17]** .
- Restaurants and other specialty retailers: Compete with Starbucks for prime retail locations and qualified personnel  **[0000829224-24-000057_sbux-20240929.htm:17]** .
- Specialty coffees and teas sold through grocery stores, warehouse clubs, specialty retailers, convenience stores, and foodservice accounts: Compete with Starbucks' Channel Development segment  **[0000829224-24-000057_sbux-20240929.htm:17]** .
- Packaged coffee and tea and single-serve and ready-to-drink coffee beverage markets: Increased competition globally, including from new and large entrants  **[0000829224-24-000057_sbux-20240929.htm:40]** .

c9b4f75f568f55ab5866345676118f83c4ce4b530e5e366f226ac73d2511c418

North America

International

- United States

- China

- Other Countries

Channel Development

Corporate and Other

Americas

China/Asia Pacific

EMEA

All Other Segments

Total Revenue

e88714acd15e98d16b5d9e54865de83d7259d1aac1c5745ff151886a7eaf5930

Revenue Deferred from Card Activations, Reloads, and Stars

Revenue Recognized from Card and Stars Redemptions

adcfa203113a56005760645368ebf501974c8c2a91fcf9fe453bc489f9f238e2

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name                 | Start Date | End Date | Reason for Change |
|----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 1987  **[0000829224-24-000057_sbux-20240929.htm:126]**    | Present  | Current auditor   |

3e17dd938ede982d1375f625908956b8133d69b04c22c1a15c8c50344094d7a4

432438dd196e0adf3bd995e2064bd93c3359bc851900d8ed2f52ecc81319f046

0e572ab352a0284782ebe8915f7651bbf250a79ac298f6ae38a745ce904dd661

- **Starbucks plans to double its U.S. store count**, indicating significant growth potential in the domestic market. The CEO highlighted the opportunity to execute smaller formats that deliver great seating and partner experience, opening up new trade areas. The company has seen tremendous success in states like Texas and the Southeast, with new stores opening with great economics.  **[SBUX_3413451_13]**
- **Strategic shift from discounting to broader marketing efforts is driving sales improvements**, particularly among non-Starbucks Rewards customers. By reducing discounts and increasing broad-based marketing, Starbucks has seen growth in the morning daypart and a return of non-Rewards customer traffic to levels from a year ago. This approach has strengthened ticket and overall revenue.  **[SBUX_3413451_15]**
- **Investments in labor and operational efficiencies are expected to drive traffic and margin expansion**. Starbucks is adding additional staffing hours to improve the partner and customer experience, which has shown positive responses in stores. The company is also focusing on driving efficiencies both in-store and out-of-store, yielding savings of approximately **150 basis points** in Q1. These initiatives are expected to balance investments and lead to margin expansion over time.  **[SBUX_3413451_18]** **[SBUX_3413451_10]**

58afb2acad20b12725c1b83577a333620a1446db8fb5b4593fb19a96c1885200

- **Increased expenses and margin pressure**: Starbucks expects EPS to be lowest in Q2 due to seasonality, organizational restructuring charges, and elevated investments, with year-over-year pressure intensifying. General and administrative expenses are projected to be higher as a percentage of revenue for fiscal year 2025, which will pressure margins in the near term.  **[SBUX_3413451_21]** ,  **[SBUX_3413451_11]**
- **Operational challenges with mobile ordering**: The lack of sequencing in mobile orders is causing bottlenecks and congestion in stores, leading to customer dissatisfaction and potentially impacting sales. The company acknowledges it currently lacks effective measurement systems to track wait times and operational improvements, which may delay efficiency gains.  **[SBUX_3413451_19]** ,  **[SBUX_3413451_9]**
- **Risks associated with aggressive store expansion**: The plan to double the U.S. store count could lead to market saturation and cannibalization, potentially diluting the brand's premium positioning and impacting pricing power and profitability. Concerns were raised about balancing extensive distribution with maintaining current price points.  **[SBUX_3413451_13]** ,  **[SBUX_3413451_21]**

354dacc62089dc7dbc9953a3d98cd2afaa5655c306717a8868645cf4c1b9252f

1. **Productivity and Margin Expansion**  
   **Q:** Do you still see $4B productivity opportunity by 2028?  
   **A:** Rachel Ruggeri stated they continue to focus on efficiencies both in-store and in supply chain, achieving about **150 basis points of margin expansion** this quarter due to efficiency. However, they are not sticking to the **$4 billion** figure and are working through the right level of efficiencies for future margin expansion.  **[SBUX_3413451_10]** 

2. **Store Expansion and Format Strategy**  
   **Q:** How will you double U.S. store count?  
   **A:** Brian Niccol expressed confidence in doubling the U.S. store count by utilizing flexible store formats—including small, medium, and large sizes—that deliver the Starbucks experience. Success in markets like Texas and the Southeast with these formats supports this growth potential.  **[SBUX_3413451_13]** 

3. **Organizational Restructuring and G&A Impact**  
   **Q:** What changes are you making to support organization?  
   **A:** Starbucks is creating roles like **Chief Store Officer** and **Chief Development Officer** to drive accountability in key business lines. They expect a spike in **G&A** in Q2 due to restructuring, with some savings starting in Q4, but G&A as a percentage of revenue will be higher this year.  **[SBUX_3413451_11]** 

4. **Operational Improvements and Mobile Order Sequencing**  
   **Q:** Can you quantify operational improvements and 4-minute handover?  
   **A:** Brian Niccol explained that bottlenecks are due to mobile orders lacking sequencing. They're piloting an algorithm in **3 stores** to smooth mobile order rushes, resulting in improved financial performance and higher partner and customer satisfaction.  **[SBUX_3413451_9]** 

5. **Partner Investments and Staffing Levels**  
   **Q:** How are you assessing staffing and investments needed?  
   **A:** Starbucks added additional labor hours to **3,000 stores** based on precision staffing models and is piloting in **700 stores** to understand the optimal labor model. While there's a near-term unfavorable impact, they expect these investments to drive traffic and be accretive long-term.  **[SBUX_3413451_18]** 

6. **Marketing Strategy and Spend**  
   **Q:** What's the plan for marketing spend in 2025?  
   **A:** Starbucks is reallocating dollars from discounting to brand-building marketing efforts. Marketing spend as a percentage of revenue is **increasing, close to doubling**, but overall net revenue has increased due to reduced discounts.  **[SBUX_3413451_8]** 

7. **Menu Simplification and Daypart Strategy**  
   **Q:** Will you have different AM and PM menu offerings?  
   **A:** They're simplifying the menu by reducing items by about **30%** to focus on speed and core offerings. Digital menu boards allow flexibility to adjust merchandising between dayparts, providing appropriate offerings for morning and afternoon.  **[SBUX_3413451_14]** 

8. **Attracting Younger Customers and Menu Strategy**  
   **Q:** How are you drawing younger customers back?  
   **A:** Starbucks is broadening its reach across all age groups by offering appealing drinks like **matcha lattes** and cold beverages. They're seeing progress with younger customers through smart flavors in tea and cold drinks.  **[SBUX_3413451_17]** 

9. **Promotion Strategy and Impact on Ticket**  
   **Q:** What's the impact of fewer promotions on ticket?  
   **A:** Ticket in North America grew over **4%**, benefiting from annualized pricing and fewer discounts. The shift from discounts to broad-based marketing is helping reach a broader customer base, strengthening ticket and overall proposition.  **[SBUX_3413451_15]** 

10. **Siren System Implementation and Store Processes**  
    **Q:** Why only implement Siren System in top stores?  
    **A:** Most stores don't require additional capacity; achieving the 4-minute handover is about process and sequencing. The Siren System is needed only in the highest volume stores; others can improve throughput with the right processes and algorithms.  **[SBUX_3413451_16]** 

28d2ba42e81cc769dee6eaf96975ebf4e2a3653a124a129e3b39fbdc51e76073

Starbucks logs Q1 2025 gains with 150 bps margin expansion from operational efficiencies. Plans to double U.S. store count, fueling growth potential, while shifting from discounts lifts ticket 4%. Near-term EPS pressured by higher G&A and investments.

5663b6a4249230dedb098dce79199be7f0eead6c1d385754b7753890831020e8

**Quarterly guidance for Q2 2025:**  
- **EPS**: “lowest on an absolute basis with an estimated $0.01 EPS impact from coffee price volatility”  **[SBUX_3413451_6]**  (no prior guidance)  
- **Margins**: “expected to be pressured in Q2 due to organizational restructuring and investments”  **[SBUX_3413451_21]**  (no prior guidance)  
- **Coffee price impact**: “small $0.01 EPS pressure expected in Q2”  **[SBUX_3413451_6]**  (no prior guidance)

**Annual guidance for FY 2025:**  
- **EPS**: “expected to improve in the latter half of the fiscal year”  **[SBUX_3413451_6]**  (no prior guidance)  
- **Margins**: “gradual margin improvement anticipated in the back half of FY 2025”  **[SBUX_3413451_21]**  (no prior guidance)  
- **G&A expenses**: “expected to be higher as a percentage of revenue for FY 2025”  **[SBUX_3413451_6]**  (no prior guidance)  
- **Channel Development Segment**: “higher coffee prices may impact volumes, revenue, and profitability due to potential consumer pressure”  **[SBUX_3413451_6]**  (no prior guidance)

98976372554c2c2472650d7eb0abd35f36a368575f8989901cb9e7853ea65bff

a1e1370f3eca33dafd16e9c403aeef2b080a3affdb2dcaf6bbcad24daaab4ffd

1. **Earnings Call Summary**  
   **Q:** What were the main points from the SBUX earnings call Q&A?  
   **A:** Unfortunately, the documents do not provide any information about the SBUX earnings call Q&A session.

417253e911a71dad1182aba47b914040e681319a62e7dc2274b67d5bd1a0b2c9

- Total Revenue: $9,397.8 million (-0.3% YoY)  **[0000829224-25-000014_sbux-20241229.htm:22]** **[0000829224-24-000013_sbux-20231231.htm:20]**   
- Beverage: $5,678.0 million (-0.3% YoY)  **[0000829224-25-000014_sbux-20241229.htm:22]** **[0000829224-24-000013_sbux-20231231.htm:20]**   
- Food: $1,790.4 million (+1.9% YoY)  **[0000829224-25-000014_sbux-20241229.htm:22]** **[0000829224-24-000013_sbux-20231231.htm:20]**   
- Other: $1,929.4 million (-2.2% YoY)  **[0000829224-25-000014_sbux-20241229.htm:22]** **[0000829224-24-000013_sbux-20231231.htm:20]**   
- North America: $7,071.9 million (-0.7% YoY)  **[0000829224-25-000014_sbux-20241229.htm:27]** **[0000829224-24-000013_sbux-20231231.htm:20]**   
- International: $1,871.3 million (+1.4% YoY)  **[0000829224-25-000014_sbux-20241229.htm:28]** **[0000829224-24-000013_sbux-20231231.htm:26]**   
- Corporate and Other: $18.3 million (**+78% YoY**)  **[0000829224-25-000014_sbux-20241229.htm:22]** **[0000829224-24-000013_sbux-20231231.htm:20]**   

2bb7d40104501973fe3c3512e9ac93d084fa6baef42987d59e40780a755ae443

9a8ee523287dd58067affa8826607b8cefa59a78c48b1351e5e1a5d05b456f99

| Year  | Amount Due (in millions) | Debt Type              | Interest Rate (%) | % of Total Debt                                                                 |
|-------|---------------------------|------------------------|-------------------|---------------------------------------------------------------------------------|
| 2025  | $1,250.0 **[0000829224-25-000014_sbux-20241229.htm:18]**         | August 2025 Notes     | 3.800 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 8.0% = (1,250.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                       |
| 2026  | $1,000.0 **[0000829224-25-000014_sbux-20241229.htm:18]**         | February 2026 Notes   | 4.750 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 6.4% = (1,000.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                       |
| 2026  | $500.0 **[0000829224-25-000014_sbux-20241229.htm:18]**           | June 2026 Notes       | 2.450 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 3.2% = (500.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                         |
| 2027  | $1,000.0 **[0000829224-25-000014_sbux-20241229.htm:18]**         | February 2027 Notes   | 4.850 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 6.4% = (1,000.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                       |
| 2027  | $500.0 **[0000829224-25-000014_sbux-20241229.htm:18]**           | March 2027 Notes      | 2.000 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 3.2% = (500.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                         |
| 2028  | $600.0 **[0000829224-25-000014_sbux-20241229.htm:18]**           | March 2028 Notes      | 3.500 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 3.8% = (600.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                         |
| 2028  | $750.0 **[0000829224-25-000014_sbux-20241229.htm:18]**           | November 2028 Notes   | 4.000 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 4.8% = (750.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                         |
| 2029  | $1,000.0 **[0000829224-25-000014_sbux-20241229.htm:18]**         | August 2029 Notes     | 3.550 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 6.4% = (1,000.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                       |
| 2030  | $750.0 **[0000829224-25-000014_sbux-20241229.htm:18]**           | March 2030 Notes      | 2.250 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 4.8% = (750.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                         |
| 2030  | $1,250.0 **[0000829224-25-000014_sbux-20241229.htm:18]**         | November 2030 Notes   | 2.550 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 8.0% = (1,250.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                       |
| 2031  | $500.0 **[0000829224-25-000014_sbux-20241229.htm:18]**           | February 2031 Notes   | 4.900 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 3.2% = (500.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                         |
| 2032  | $1,000.0 **[0000829224-25-000014_sbux-20241229.htm:18]**         | February 2032 Notes   | 3.000 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 6.4% = (1,000.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                       |
| 2033  | $500.0 **[0000829224-25-000014_sbux-20241229.htm:18]**           | February 2033 Notes   | 4.800 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 3.2% = (500.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                         |
| 2034  | $500.0 **[0000829224-25-000014_sbux-20241229.htm:18]**           | February 2034 Notes   | 5.000 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 3.2% = (500.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                         |
| 2045  | $350.0 **[0000829224-25-000014_sbux-20241229.htm:18]**           | June 2045 Notes       | 4.300 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 2.2% = (350.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                         |
| 2047  | $500.0 **[0000829224-25-000014_sbux-20241229.htm:18]**           | December 2047 Notes   | 3.750 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 3.2% = (500.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                         |
| 2048  | $1,000.0 **[0000829224-25-000014_sbux-20241229.htm:18]**         | November 2048 Notes   | 4.500 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 6.4% = (1,000.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                       |
| 2049  | $1,000.0 **[0000829224-25-000014_sbux-20241229.htm:18]**         | August 2049 Notes     | 4.450 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 6.4% = (1,000.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                       |
| 2050  | $500.0 **[0000829224-25-000014_sbux-20241229.htm:18]**           | March 2050 Notes      | 3.350 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 3.2% = (500.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                         |
| 2050  | $1,250.0 **[0000829224-25-000014_sbux-20241229.htm:18]**         | November 2050 Notes   | 3.500 **[0000829224-25-000014_sbux-20241229.htm:18]**     | 8.0% = (1,250.0 / 15,700.0) * 100 **[0000829224-25-000014_sbux-20241229.htm:18]**                                       |

9a0f3ee57d95072d207834f25b27d531b4578ff31e87b61674575bda09c4ca56

- **Strong International Growth, Particularly in Japan**: Starbucks' business in Japan is growing at **double-digit rates**, driven by **terrific innovation**, **great execution in stores**, and a **strengthened digital presence**, celebrating the coffee house experience. This success highlights Starbucks' potential to replicate such growth globally.  **[SBUX_3395050_16]**
- **Successful Product Innovations Driving Strong Demand**: New product launches like **"Pearls"** have seen demand **significantly ahead** of expectations, even leading to supply shortages. The introduction of new platforms, including a **zero-calorie energy platform** and food innovations like the **Egg Mozzarella Pesto sandwich**, are building momentum and enhancing customer engagement.  **[SBUX_3395050_18]**
- **High Returns from Expansion in Underpenetrated Markets**: By focusing on **Tier 2 and Tier 3 markets** in the U.S., where Starbucks is **underpenetrated**, the company is achieving **strong cash-on-cash returns**. Similar positive returns are observed in China's lower-tier cities. Starbucks emphasizes investing based on **incremental returns** rather than merely increasing store count, supporting their long-term growth ambitions.  **[SBUX_3395050_15]**

5a738a7e9413ea26c557b7395216ecc769e66380c736b29fa8a75ac5ba44f4a8

- U.S. customer traffic declined by **6%**, mainly due to a double-digit decline among non-Rewards customers who represent 40% of the business.  **[SBUX_3395050_12]**
- **Operational challenges**, including supply chain issues, led to product shortages, causing Starbucks to pull back marketing efforts on new product launches due to inability to meet demand.  **[SBUX_3395050_18]**
- Despite efforts to improve operations, Starbucks anticipates **flat to declining comparable store sales** in the U.S. for the year, reflecting ongoing difficulties in driving sales growth amid a challenging consumer environment.  **[SBUX_3395050_14]**

5c9583ec00e7faab7a5e70a8c139ca72cf5bf9d62351fbedb0b54bd343a18d8b

- **Reaffirmed Long-Term Growth Targets**: Starbucks management remains confident in achieving its long-term growth algorithm, targeting 5% same-store sales growth and over 15% EPS growth for 2025 and beyond, despite short-term challenges.  **[SBUX_3381569_21]**
- **Progress on Siren System Implementation**: The company is on track with the rollout of its Siren System across stores, aiming to enhance operational efficiency and reduce wait times, which is expected to drive customer satisfaction and sales growth.  **[SBUX_3381569_18]**
- **Maintaining Premium Brand While Balancing Value**: Starbucks is committed to preserving its premium brand positioning while strategically introducing value initiatives to attract occasional customers without compromising brand integrity.  **[SBUX_3381569_22]**

3e2cfeab9e0fb9ac390484542560a97bf64f865d2dcc2e6e3276cebbe4bd89eb

1. **Long-Term Growth Guidance**  
   **Q:** Is the long-term growth guidance still valid?  
   **A:** Despite a tough quarter, we see **no change in our long-term business outlook**. We believe we'll return to growth and maintain our guidance of **5% same-store sales and 15%+ EPS growth** for 2025 and beyond.  **[SBUX_3381569_21]** 

2. **China Competitive Environment**  
   **Q:** Are China issues transitory, and will competition ease?  
   **A:** We observe **intense price competition** in the mass market segment in China, especially in tea overlapping into coffee. We're choosing **not to participate** in this price war, focusing instead on our **premium brand**. We anticipate a **shakeout among competitors** unable to sustain this intensity. As the Chinese consumer resumes spending, our healthy business with **strong store operating margins** will grow.  **[SBUX_3381569_16]** 

3. **U.S. Comp Performance**  
   **Q:** How did issues arise so quickly since last year's strong demand?  
   **A:** Consumer headwinds and pressures have been **sharper and more accelerated than expected**. In China, recovery has been **choppy** with more intense price competition. While this quarter was tough, we're **committed to the long term**.  **[SBUX_3381569_17]** 

4. **Value Strategy and Brand Impact**  
   **Q:** How do you balance value strategy with brand health?  
   **A:** We have **no intention of broad discounting** that could harm our premium brand. Our brand remains **strong**. We're focusing on **targeted value offerings** to attract occasional customers **without eroding brand equity**.  **[SBUX_3381569_22]** 

5. **Engaging Occasional Customers**  
   **Q:** Is there a brand or product resonance issue with occasional customers?  
   **A:** Our overall **brand equity continues to be strong**. Occasional customers face economic pressures and seek **variety and value**. We're focusing on **connecting with them** through new products and by bringing them into our **app ecosystem** to demonstrate the value we provide.  **[SBUX_3381569_14]** 

6. **Global Unit Growth Confidence**  
   **Q:** How confident are you in maintaining outsized unit growth, especially in China?  
   **A:** We see **strong cash returns** from new stores, with **reduced costs and efficiencies**. The headroom internationally is high; in China, we're in over **800 cities with potential for more than 3,000**. We’re confident in our expansion plans, particularly in **lower-tier cities** where returns are even **stronger**.  **[SBUX_3381569_15]** 

7. **Loyalty Program Trends**  
   **Q:** Why did Active Rewards members decline quarter-over-quarter?  
   **A:** The decline in 90-day active members is due to **less frequent visits from occasional customers** amidst consumer pullback. However, we still have a **large Rewards membership** with **6% year-over-year growth**, and we continue to see strong engagement through **Mobile Order & Pay** and delivery.  **[SBUX_3381569_19]** 

8. **Siren System Update**  
   **Q:** What's the status of the Siren System rollout?  
   **A:** The **Siren System was never on the back burner**. We're on track to install it in **less than 10% of stores this year** as committed. We've added underlying processes to **reduce wait times** inside stores, which will serve as a base for full Siren System implementation.  **[SBUX_3381569_18]** 

9. **Operational Improvements (Toyota System)**  
   **Q:** How will the Toyota production system improve operations?  
   **A:** We're working on **store deployment** and **peak time processes** to better engage customers. The estimated **1 percentage point improvement** is conservative; fully deployed, we expect even **greater benefits**. Accelerating these initiatives is part of our plan.  **[SBUX_3381569_20]** 

10. **U.S. Comps and New Products**  
    **Q:** How did new products like Lavender impact comps?  
    **A:** **Lavender was highly successful**, resonating with **Gen Z and millennials**, particularly in the afternoon. However, since it launched **later in the quarter**, it didn't significantly impact the exit rate. We have more innovations coming and expect upcoming actions to **balance consumer headwinds**.  **[SBUX_3381569_13]** **[SBUX_3381569_19]** 

bcc8a072046aad76f6a74216db663fac646ff3f70a6693d344e61e7c4f2824aa

- **Declining customer visits due to perceptions that Starbucks has drifted from its core and made it harder for customers, leading some to visit less often and impacting financial results.**  **[SBUX_3403800_0]**
- **Operational challenges such as staffing issues, bottlenecks, and complexity for baristas, which may adversely affect customer service and satisfaction.**  **[SBUX_3403800_1]**
- **An overly complex menu and pricing architecture, as well as issues with Mobile Order & Pay overwhelming the café experience, may hinder customer engagement and growth prospects.**  **[SBUX_3403800_1]**

b05ec7edf1b5da2c213de0d5b09f1180db6babdab67283bdccee5b332a6b934d

- **Leadership committed to returning to Starbucks' core identity**, focusing on offering the finest coffee and a welcoming coffee house experience to drive customer loyalty and growth.  **[SBUX_3403800_0]** **[SBUX_3403800_1]**
- **Investing in partners (baristas) to provide exceptional customer service**, making Starbucks the best job in retail with meaningful career growth and industry-leading benefits, leading to improved service and customer satisfaction.  **[SBUX_3403800_0]** **[SBUX_3403800_1]**
- **Simplifying operations and enhancing marketing strategies**, including refining Mobile Order & Pay, addressing staffing and bottlenecks, simplifying the menu, and reintroducing Starbucks to all customers to drive sales growth.  **[SBUX_3403800_1]**

056ad53ab3c1270dceafe64f80950ddeb5c34f245ebabbdb8f27289d6fd40fcf

1. **China Strategy and Headwinds**  
   **Q:** Will you consider licensing China operations amid headwinds?  
   **A:** Laxman acknowledged significant challenges in China due to increased competition and macro issues.  **[SBUX_3395050_11]**  They are exploring strategic partnerships to strengthen their advantage but are in early stages and not ready to comment specifically. They remain committed to China, seeing it as a market with significant long-term potential, with **60,000 partners** and a distinctive premium brand.  **[SBUX_3395050_11]** 

2. **U.S. Traffic Decline**  
   **Q:** Why is non-Rewards customer traffic declining sharply?  
   **A:** Laxman attributed the decline in non-Rewards customer traffic to a challenging consumer environment impacting away-from-home consumption.  **[SBUX_3395050_12]**  While their at-home brands are seeing volume and share increases, they plan to better communicate value to non-Rewards customers by opening up the app to all and targeting price investments funded by efficiency efforts.  **[SBUX_3395050_12]** 

3. **Global Store Expansion Commitment**  
   **Q:** Are you still committed to store expansion amid weak comps?  
   **A:** Laxman stated they are not chasing a number but are driven by ROI.  **[SBUX_3395050_15]**  They see strong cash-on-cash returns, especially in underpenetrated Tier 2 and Tier 3 markets.  **[SBUX_3395050_15]**  With rigorous site selection and monitoring, they are confident that ongoing expansion supports long-term growth.  **[SBUX_3395050_15]** 

4. **U.S. Sales Guidance**  
   **Q:** Will U.S. comps improve in Q4 versus Q3?  
   **A:** Laxman discussed progress on fixing stores, product innovations, and Rewards program engagement.  **[SBUX_3395050_14]**  However, they are seeing shifts in routines and disruptions due to broader issues.  **[SBUX_3395050_14]**  Their guidance reflects the challenging environment, expecting comps to be a **low single-digit decline to flat** for the year.  **[SBUX_3395050_14]** 

5. **$4 Billion Savings Plan and Siren Rollout**  
   **Q:** Is the $4B savings gross or net? Can Siren rollout accelerate?  
   **A:** Rachel confirmed the **$4 billion** in savings over the next four years is a **net** number.  **[SBUX_3395050_13]**  On the Siren system, Laxman said they're matching equipment rollouts with store renovations to optimize costs and manage CapEx.  **[SBUX_3395050_13]**  They are targeting high-impact stores first and accelerating parts of the rollout where possible.  **[SBUX_3395050_13]** 

6. **Average Check and Pricing**  
   **Q:** What drove average check growth and pricing impact?  
   **A:** Rachel explained that the U.S. ticket comp increased by **4%**, with **25%** driven by multi-beverage orders due to promotional offers.  **[SBUX_3395050_10]**  The remaining **75%** was net pricing, including pricing moves and promotional impacts.  **[SBUX_3395050_10]**  They've been measured in promotions, focusing on Starbucks Rewards growth.  **[SBUX_3395050_10]** 

7. **G&A Leverage and Margins**  
   **Q:** Is G&A still a source of leverage into FY'25?  
   **A:** Rachel noted that G&A declined year-over-year by about **5%** due to lower performance-based compensation and cost efficiencies.  **[SBUX_3395050_9]**  They expect to continue driving leverage in G&A as part of overall efficiency efforts into FY'25.  **[SBUX_3395050_9]** 

8. **Product Innovations and Supply Challenges**  
   **Q:** What's working in new products and value strategies?  
   **A:** Laxman highlighted growth in core coffee, with cold beverages now **76%** of sales and espresso drinks up **4%**.  **[SBUX_3395050_18]**  New platforms like Pearls exceeded expectations but faced supply constraints.  **[SBUX_3395050_18]**  They're building energy and food platforms over time but acknowledge supply chain work is needed for stability.  **[SBUX_3395050_18]** 

9. **International Best Practices**  
   **Q:** Any international successes to apply elsewhere?  
   **A:** Laxman pointed to Japan's **double-digit growth** driven by innovation, execution, and digital presence.  **[SBUX_3395050_16]**  They're leveraging best practices globally as part of their strategy to truly go global.  **[SBUX_3395050_16]** 

10. **Partner Investments and Efficiencies**  
    **Q:** How do you balance cost efficiencies with partner experience?  
    **A:** Laxman is pleased with progress on partner experience, with average hours per partner at a historic high.  **[SBUX_3395050_17]**  They focus on simplifying operations and ensuring consistency, with initiatives like the Siren system improving partner reception and customer experience.  **[SBUX_3395050_17]** 

ce3ee8493b4dc7590733454924bb5c987bfc052c4aca546b4398e5379832bb48

- *Bear case for Starbucks ($SBUX) based on the Q&A section of the earnings call transcript:**
- **Starbucks has lowered its full-year global revenue growth guidance to 7%-10% from the previous range of the low end of 10%-12%, and same-store sales growth guidance to 4%-6% from 5%-7%, due to multiple headwinds including a softer-than-expected January and anticipated impacts on second-quarter performance**.  **[SBUX_3371287_9]** **[SBUX_3371287_10]**  This reliance on a sharp acceleration in the second half presents risks if growth does not materialize as expected.
- **Geopolitical events in the Middle East have negatively impacted Starbucks' business both in the region and in the U.S., leading to decreased traffic from occasional customers, particularly affecting afternoon visits**.  **[SBUX_3371287_2]** **[SBUX_3371287_13]**  This decrease in traffic from occasional customers could continue to pressure sales growth.

3bb099815847151f9d9a44a71cce1e284579f13d619b18696f78d65b480f24cb

- Starbucks faced a challenging quarter with sharper and more accelerated headwinds than expected, particularly with consumer pressures, raising concerns about the company's ability to meet its ambitious growth goals.  **[SBUX_3381569_17]**
- The recovery in China has been choppy, with more intense price competition than anticipated, which could impact Starbucks' growth prospects in a key market.  **[SBUX_3381569_17]**
- Implementing value strategies to attract customers may dilute Starbucks' premium brand positioning, potentially affecting the long-term health of the brand.  **[SBUX_3381569_22]**

4d9652ef492a83b5bf4323d45ed8e669810ad3e8244f34f713b724accbd2aeff

Starbucks Corp (SBUX)

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