Are Starbucks' operating expenses under control in 2024?

**Starbucks' operating expenses were higher than expected in Q4 2024, primarily due to unplanned and nonrecurring third-party services and transition costs.** This led to G&A expenses exceeding 7% of revenue in Q4, primarily due to these one-time costs.

1. **Strategic Investments and Innovations**: Starbucks has been investing in strategic areas such as menu innovation, digital initiatives, and store modernization. For instance, the company plans to equip about 10% of its stores with the Siren System by the end of the year, indicating a continued focus on technological advancements to enhance efficiency.
2. **New Store Openings and Expansion**: Starbucks has been actively expanding its store footprint, with global store growth projected to be approximately 7% in fiscal 2024. The company opened 549 net new stores in the first quarter of fiscal 2024, bringing the total global store count to 38,587 by the end of Q3 2023.
3. **Ongoing Inflationary Pressures**: Despite these strategic investments, Starbucks has faced ongoing inflationary pressures, which have been a concern for the company. This pressure has affected its operating expenses, contributing to the higher G&A expenses in Q4.
4. **Efficiency and Cost Control Measures**: Starbucks has implemented efficiency-enhancing measures and cost control initiatives across various areas of the business. For example, the company has been focusing on reducing manual labor and increasing efficiency in stores.

In conclusion, while Starbucks has been making strategic investments that enhance its operations and market position, it has also faced inflationary challenges that have impacted its operating expenses. The company's ability to manage these expenses effectively will be key to maintaining profitability and driving future growth.