Thursday 05 October 2023

Starbucks expects to have 55k locations by 2030

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MILAN – During an investor event last week, Starbucks said it plans to add about 22,000 new locations within the next 10 years — from its current 33,000 global stores to about 55,000 units by 2030. More than half of its new stores will be cafés, while 40% will be focused on drive-thru and 5% will be focused on pickup formats. This announcement comes just months after the company said it will close about 800 stores, including 400 in the U.S. During its most recent quarter, the company’s global same-store sales decreased 9%, an improvement from its Q3 in which same-store sales were down by 40%. The company has opened a net 1,404 new stores in 2020, of which 1,117 were international.

During its virtual biennial investor day, CFO Pat Grismer reiterated the company’s fiscal 2021 forecast of adjusted earnings per share of $2.70 to $2.90 at the company’s biennial investor day.

By fiscal 2022, which will start in October, the coffee chain is forecasting growth of more than 20% as it laps weaker earnings growth.

In 2023 and 2024, Starbucks expects to hit long-term growth targets, with adjusted earnings per share growth of 10% to 12%.

Setting aside the impacts of COVID-19, “we’ve established a track record of executing our growth at scale agenda with more consistent overall results, demonstrating sales growth and margin improvement.

And we’re now in a position to guide to a more explicit range of non-GAAP EPS growth with confidence,” Grismer noted.

Grismer also expects the global comp sales to grow in a range of 4 to 5% in fiscal 2023 and 2024, up 1% from the prior growth model. In the U.S., comp sales are expected in a range of 4 to 5% growth, up 1%, while China is expected in a range of 2 to 4%, also up 1% from the prior growth model.

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