“For fiscal year 2025, we expect our G&A percentage to be higher than prior year as we lap lower performance-based compensation.”

In context

“proach to test and learn, we will make the right investments to drive long-term growth. Importantly, we also continue focusing on driving efficiencies across the company as we balance our investments while driving margin expansion over time. In Q1, our in-store efficiencies increased as a result of improved partner stability as we focus on the "Back to Starbucks" strategy. Out of store, we further optimized our supply chain and recalibrated rates, resulting in meaningful sourcing efficiencies in the quarter. Collectively, in and out of store efficiencies yield savings of approximately 150 basis points in Q1. We will continue to secure additional efficiencies to help fund investments as we leverage a disciplined and data-driven approach to our turnaround. Shifting from efficiencies to G&A. For fiscal year 2025, we expect our G&A percentage to be higher than prior year as we lap lower performance-based compensation. Specific to Q2, we expect G&A as a percentage of revenue to spike as we transform the support organization, incurring near-term restructuring charges, inclusive of severance pay and related benefits. At this time, we're still working through the impact of this transformation work and we'll share more details regarding the financial impact during our Q2 earnings call. Q1 EPS was $0.69, down 22% from the prior year, primarily reflecting the impact of deleverage and heightened investments. Q1 EPS also included a $0.02 year-over-year benefit from a lower effective tax rate, primarily driven by a discrete item, which is not expected in the balance of this fiscal year. Now, looking at our full fiscal year 2025, although our guidance is suspended, I'd like to provide some insights into our quart”