CLAIM #52877 · Starbucks Corporation (SBUX) · 2022Q2 earnings call · May 3, 2022 · due May 3, 2023
“And relative to margins, I think as Howard spoke about, we expect that some portion of inflation will essentially abate.”
Rachel Ruggeri · EVP & CFO
In context
“stiff, is going to abate. And when it does, we'll be in a great position because we will do -- we will have done things to handle the demand which we're having trouble doing now. But Rachel, go ahead. Rachel Ruggeri : Yes. Let me just speak to the more than $200 million that Howard addressed in his prepared remarks, is on top of the commitments we'd already made earlier this year are largely related to wage. So the combination of that is about $1 billion in this year alone. And so certainly, we'll have further investments that we'll make over time that we'll share with you at Investor Day. But I think it's important to remember that a little more than $200 million on top of the commitments we've already made, so it's a pretty big broad investment when you look at it from that perspective. And relative to margins, I think as Howard spoke about, we expect that some portion of inflation will essentially abate. In addition to that, I think what's really important and the pressure we're seeing in the back half of the year is that's largely pressure from what we're seeing in China and the amplification in Q3. And just to give you a perspective, what we're projecting for the balance of the year is that typically, what we typically see from China in terms of market contribution on OI will be half of what we typically expect. As the market returns and mobility increases, we know that the growth rhythm there is strong. We believe in the opportunity ahead, and that will also give us further opportunity as we think about that into the future. But I think when you think about those 2 aspects and the investments we're making today, that will return investments in retention, investments in recruiting, inve”
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SEC filings for SBUX ↗ · Claim quote is verbatim from the 2022Q2 earnings call.