Q : What is the plan for marketing spend in 2025, and how does it compare to last year's $50 million? A : Brian Niccol, CEO: We are reallocating funds from discounting to brand experience marketing. Our recent ad campaign highlights the unique connection between baristas and customers. We aim to double marketing spend as a percentage of revenue, offset by reduced discounts, making it neutral to the business overall.

Q : Can you quantify the impact of operational improvements, specifically regarding the four-minute handover timeline? A : Brian Niccol, CEO: We've segmented stores by transaction volume and identified that bottlenecks are more related to mobile ordering sequencing than capacity. High-performing stores already comp positively, showing better partner and customer satisfaction. We're piloting an algorithm to smooth mobile order rushes, improving performance and satisfaction.

Q : Is there still a $4 billion productivity opportunity by 2028, largely COGS-driven? A : Rachel Ruggeri, CFO: We continue to focus on efficiencies both in-store and through our supply chain, achieving 150 basis points of margin expansion this quarter. While we're not sticking to the $4 billion figure, we will pursue efficiencies to drive margin expansion over time.

Q : How do you plan to balance being the most distributed coffee brand while maintaining premium pricing? A : Brian Niccol, CEO: Innovation in food and beverage will be key to maintaining relevance and pricing architecture. We aim to serve various occasions and age groups with the right flavors and pricing, ensuring we remain a premium yet accessible brand.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

This article first appeared on GuruFocus .