CLAIM #53207 · Starbucks Corporation (SBUX) · 2025Q1 earnings call · Jan 28, 2025 · due Sep 30, 2025
“But I think what's important to remember is that we're also lapping lower performance-based comp this year and that starts to take an even greater impact in Q3 and Q4. So, net-net G&A this year will still be higher than prior year as a percentage of revenue, largely given that lap of lower-base performance comp from last year.”
Rachel Ruggeri · CFO
In context
“t. And so, similar to what we're trying to do for driving that accountability through our stores, which is really where the business happens, we want to make sure that we've got the support center also focused on supporting the stores in an efficient manner and an accountable manner to where the business happens. So, structurally, that's what's going on. And we're in the process of evolving that over the next couple of months. The second half of that, I'll let Rachel chime in on that piece. Rachel Ruggeri: So, Brian, in terms of your question about the G&A and the impact, as I -- as we think about the full year, we would expect, while we'll have the spike in Q2, as I shared in my prepared remarks, we would expect to see -- start to see some savings in Q4 related to that particular effort. But I think what's important to remember is that we're also lapping lower performance-based comp this year and that starts to take an even greater impact in Q3 and Q4. So, net-net G&A this year will still be higher than prior year as a percentage of revenue, largely given that lap of lower-base performance comp from last year. But yes, you would expect just from the restructuring itself, you would see some benefit in Q4. And then, of course, we will expect this will drive leverage over time. Operator: Thank you. Your next question comes from Chris O'Cull with Stifel. Please state your question. Chris O'Cull: Thanks. Brian, as we've thought about the business, our view has been that improving the partner experience is somewhat intertwined with improving the customer experience. Are there specific customer experience issues you believe the company can resolve that should also help improve the employee experience? And sort of related to this, when do you expect that the mobile ordering algorithm changes to be implemented? Brian Niccol: Yeah. Look, I think you're absolutely right. The idea of setting up our partner”
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SEC filings for SBUX ↗ · Claim quote is verbatim from the 2025Q1 earnings call.