Starbucks on Thursday presented its five-year plan for strong global growth at the Biennial Investor Conference.
The company said it plans to add 12,000 stores globally – to a total of 37,000 – by 2021. It has projected a 10 per cent revenue growth, 15-20 per cent EPS growth and mid-single digit comp growth annually.
Company representatives said that Roasteries and Starbucks Reserve stores will elevate the Starbucks brand and customer experience and that new innovations will further accelerate the momentum of the company’s digital flywheel and mobile ecosystem.
“Industry-leading innovation is driving our core business and creating further separation from competitors all around the world,” said Chairman and outgoing Chief Executive Officer, Howard Schultz.
“Our Roasteries and Starbucks Reserve stores will further transform – and elevate – the Starbucks Experience we deliver to our customers, and are laying the foundation for our next wave of profitable, global growth,” he added.
“Starbucks continues to deliver record financial performance. The customer experience created in our stores by partners who proudly wear the green apron is what makes Starbucks a destination for 80 to 90 million customers a week,” said President and Chief Operating Officer, Kevin Johnson.
“We are today executing against an ambitious, carefully-curated, multi-year strategy to further elevate the entire Starbucks brand and customer experience around the world, and further extending Starbucks leadership around all things coffee, retail and mobile. The power of our brand, the strength and momentum in our business, and the world-class management talent we have assembled give me great confidence in our ability to capture the enormous global growth opportunities ahead.”
Last week, it was announced that Johnson will assume the role of President and CEO at Starbucks, and Schultz will become Executive Chairman, effective April 3, 2017.
The coffee chain is simultaneously innovating and expanding its food menu with products customers have been looking for, starting with the launch of Sous Vide Egg Bites in January 2017, a Certified Gluten-Free Breakfast Sandwich, the expansion of its successful Bistro Box platform as well a regional rollout of organic soups.
Starbucks® Breakfast Sandwich sales have more than doubled over the past four years and innovation will continue to drive meaningful growth, creating and meeting customer demand. Building on this strong momentum, Starbucks once again aims to double food growth over the next five years.
Over the next five years, Starbucks expects its channel development segment, which includes its Consumer Packaged Goods (CPG) portfolio, Branded Solutions (licensed stores and foodservice), and Ready-to-Drink (RTD) segments, all of which are expected to generate an incremental $1 billion in revenue, grow operating income by 75 per cent, and double its RTD business outside of the US.