Starbucks Corporation (NASDAQ:SBUX) Q1 2024 Earnings Call Transcript

Laxman Narasimhan: John, if I could just add one more thing. I think we’ve systematized our approach to how we think about innovation, how we think about productivity, how we think about growth overall, it’s a very sort of systematic approach that we have in place with pipelines around how we’re looking at different things. So we have visibility clearly in terms of things that we could do, for example, about the store. And they go multiple years. And so even if we did bring something forward, because we can, it does not at all mean that we don’t have more that we go after. So I feel very confident about that, that we’ll continue to invest in the business. There’s no impact from a buyback. I think that was a question asked earlier.

None whatsoever. And we’re investing in the business, but we also know that we have opportunities for us to make ourselves more efficient. At the same time, get the throughput that we think we need in order to meet the demand that exists out there.

Rachel Ruggeri: Yeah. I do think it’s just worth noting is that our buybacks are expected to be nearly 1% of our earnings growth net of interest, so small in the scheme of things.

Operator: Thank you. That was our last question. I will now turn the call over to Laxman Narasimhan for closing remarks.

Laxman Narasimhan: Thank you so much, Diego. I will close by reiterating our strong momentum from the quarter and our overall confidence in our long-term growth. While we continue to navigate some headwinds, we’re encouraged by the strength of our brand, particularly with our loyal customers around the world and the plans that we have in place to address the challenges we have identified. On a broader level, I’ve come to learn that we truly are a different kind of company here at Starbucks, but we are now operating in a different kind of world. We recognize that no one can solve the many difficult problems in the world alone. Starbucks is, however, and will continue to be the world’s third place, providing people with places to come together, to connect, to find common ground, to feel they belong, and to bring a little joy in their everyday. Thank you for joining us this afternoon.

Operator: This concludes Starbucks’ first quarter fiscal year 2024 conference call. You may now disconnect.