“We remain on track with our $2 billion cost savings plan. These are gross savings, which we expect to realize through fiscal 2028, and balanced across product and distribution costs, OpEx and G&A.”

In context

“reported with China as company operated. As such, we now expect our consolidated fiscal 2026 net revenues to be roughly flat year-over-year. We continue to expect slight year-over-year growth in our fiscal 2026 consolidated operating margins driven by the net effect of a number of factors. First, we expect sales leverage to build over the next 2 quarters as we execute with discipline and advance our cost savings initiatives. These serve as offsets to our investments in our Back to Starbucks priorities as well as other headwinds. Second, as I mentioned earlier, we expect coffee and tariff pressures to start easing as we move into the back half of the fiscal year. Third, our China JV structure is expected to be margin accretive with roughly half of its revenues flowing to operating income. We remain on track with our $2 billion cost savings plan. These are gross savings, which we expect to realize through fiscal 2028, and balanced across product and distribution costs, OpEx and G&A. This year, the impact of our efforts will be most visible in G&A as much of our realized savings across the P&L are being offset by our strategic investments in our Back to Starbucks plan. We continue to expect our consolidated G&A dollars to run below fiscal 2023 levels even after incorporating greater performance-based compensation related to better-than-expected financials. Putting this all together, we are raising our EPS guidance at both ends of the range to between $2.25 and $2.45. China's transition to a JV structure is now expected to be relatively EPS-neutral this fiscal year. While global macro factors can introduce variability in our results, our guidance reflects our current view and confidence in the underlying business. Finally, from a unit count perspective, we still expect”