“We expect consolidated operating margins to grow slightly year over year, driven by improvements in the back half of the year.”

In context

“the business longer term. For fiscal 2026, we expect 3% or better global comp sales growth, led by 3% or better comp sales in the U.S. as well. In fiscal 2026, we expect approximately 600,000 to 650 net new coffee houses as we work to rebuild our development pipeline. This includes 150 to 175 net new U.S. company-operated coffee houses, a slight decrease in North America licensed coffee houses, and 450 to 500 net new international coffee houses, of which China comprises close to half. We plan on providing more details of our accelerating pace of growth beyond this year at our Investor Day. We expect our consolidated net revenues to grow at a similar rate to global comp growth for the full fiscal 2026, as our portfolio repositioning at the end of fiscal 2025 offsets our new store openings. We expect consolidated operating margins to grow slightly year over year, driven by improvements in the back half of the year. Remember that our quarterly margin rates follow natural seasonality in the business, and our second quarters are usually the lowest margin quarters of the year. Our expectations for margin improvement are driven by the following. First, we will anniversary our Green Apron service investments in Q4. Second, we expect sales leverage builds as we continue to refine and our Back to Starbucks initiatives and improve our supply chain. And third, while market dynamics can change, we continue to expect coffee prices and tariff pressures to peak in Q2 and find some relief in the back half of the fiscal year. Following our structural reorganization last fiscal year, partial offsets to our investments, we expect fiscal 2026 consolidated G&A dollars to run below fiscal 2023 levels, providing We also”