CLAIM #52841 · Starbucks Corporation (SBUX) · 2022Q1 earnings call · Feb 1, 2022 · due Sep 30, 2022
“But overall, our inflationary pressures in FY2022 will remain elevated relative to FY2021.”
Rachel Ruggeri · CFO
In context
“but also the inflationary pressures, both in freight and labor across our supply chain and across and through our commodities. What we’ve seen, those costs have actually, as we’ve outlined, accelerated in December and have intensified, really largely related to Omicron into January. So when we talk about the back half of the year having another 200 basis points of headwinds, the lion’s share of that is really inflationary pressures related to Omicron that we saw in December and that we’re seeing further in Q2. That also includes the COVID-related pay as well as training. As we get through Q2 and when Omicron subsides, I don’t know exactly when that will happen, but as it does, we would expect that our inflationary pressures related to Omicron would lessen in terms of the impact on margin. But overall, our inflationary pressures in FY2022 will remain elevated relative to FY2021. Operator: Thank you. Your next question comes from John Ivankoe with JPMorgan. Please proceed with your questions. John Ivankoe: Hi, thank you very much. I wanted to get back to the discussion on U.S. traffic because it looks to us that U.S. same-store traffic is still down double digits from the first quarter of 2022 to the first quarter of 2021, and despite at least what you said last quarter, a record number of discrete customers, obviously, a record number of MSR members. So I wonder like what the big kind of addressable buckets in your opinion there is to kind of re-attract the frequency of your previous customer base is kind of the first point. And secondly, is there anything that you can do with the direct communication functions around MSR, the personalization, what have you to re”
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SEC filings for SBUX ↗ · Claim quote is verbatim from the 2022Q1 earnings call.