Starbucks CEO lays out long-term growth plan, aims to open thousands

Starbucks CEO lays out long-term growth plan, aims to open thousands

Starbucks is searching for to return to pre-pandemic margins, executives said at the company’s investor day held Thursday, focusing on web revenues up 5% or more and annual earnings per share of $3.35 to $4 by fiscal yr 2028.

The investor day, held in New York City, is the company’s first since CEO Brian Niccol’s hiring in September 2024, when he suspended monetary steering as he undertook a turnaround campaign.

On Wednesday, Niccol said the plan was “ahead of schedule,” after it reported US sales growth for the first time in two years.

Starbucks held an investor day on Thursday, the company’s first since CEO Brian Niccol’s hiring in September 2024. REUTERS

Starbucks’ shares fell about 2% on Thursday after the much-awaited long-term targets had been announced. Lauren Silberman, an analyst with Deutsche Bank, said the vary in the steering was “too wide,” during the event’s questions portion.

Starbucks working margin was 15.4% in 2019, however fell during the pandemic, and later from Niccol’s hefty investments in labor, to 7.9% in 2025, according to Starbucks annual filings. 

Starbucks seeks, by fiscal yr 2028, to have an working margin of 13.5-15%.

Chief Financial Officer Cathy Smith said Starbucks will search to obtain its 2028 margin goal via value financial savings, such as decreasing the value of retailer remodels, and to a lesser extent, focused menu value will increase.

Executives also said the construction of its anticipated licensing of its China shops, in partnership with Boyu Capital, will ship increased margins to the company. 

Starbucks’ worldwide division head Brady Brewer said the worldwide working margin may exceed 20% by 2028.

Starbucks expects to add more than 2,000 web new shops internationally by 2028. A mannequin of Starbucks new Ristretto cafe, above. REUTERS

Starbucks new signature mugs are displayed during the investor day. REUTERS

Starbucks expects to add more than 2,000 web new shops internationally by 2028 — outpacing 400 web new US shops the company expects to open. “The world wants more Starbucks,” Brewer said.

Executives also announced a revamp of its rewards program, re-introducing a tiered construction. Chief model officer Tressie Lieberman said that if half of Starbucks’ loyalty program members purchase from Starbucks one extra time in a yr, it could add $150 million in annual income.

Executives said the company will also enhance its provide chain, including with AI initiatives, and that the company needs 90% of its company-owned coffeehouses to be resupplied on a daily foundation by the end of 2026. 

the company will also enhance its provide chain, including with AI initiatives, and that the company needs 90% of its company-owned coffeehouses to be resupplied on a daily foundation by the end of 2026.  REUTERS

Niccol said the company had made progress in decreasing out-of-stocks in the earlier six months, without providing particular numbers. AP

Starbucks has lengthy struggled with product shortages from deep-seated provide chain kinks, Reuters reported Tuesday.

Niccol said the company had made progress in decreasing out-of-stocks in the earlier six months, without providing particular numbers.

“For most of our history, Starbucks delivered exceptional investor returns. We are determined to bring exceptional value again,” Smith said.

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