China Market ChallengesChina comps turned negative amid broader economic challenges and rising competition from lower-priced competitors.
Margin PressureMargin performance remains a work in progress, with the consolidated operating margin contracting meaningfully during the quarter, pressured by inflation, tariffs, and significant 'Back to Starbucks' investments.
Restructuring CostsThe restructuring efforts will result in $1B of costs, including $150M of severance, $400M non-cash impairment & disposal costs, and $450M of amortization of lease assets due to the closure of stores before the end of the lease term.