Starbucks Plans To Expand Global Store Footprint To 55,000 By 2030

(RTTNews) - Starbucks Coffee Co. (SBUX) announced triple shot reinvention strategy with multiple paths for long-term growth. It also announced a plan to expand its global store footprint to 55,000 by 2030, and the implementation of a $3 billion efficiency program.

The triple shot reinvention will focus on three priorities: elevating the Starbucks brand, strengthening the company's digital capabilities, and becoming truly global, the company said in a statement on Thursday.

The company aims to double global Starbucks Rewards with another 75 million members within the next five years.

The company also announced a plan to expand its global store footprint to 55,000 by 2030 - an average of 8 new stores a day and bolstered by further expansion of digital platforms across all licensed partners globally.

The U.S. store count is slated to reach more than 16,300, with a 4 percent net new store growth planned in fiscal year 2024. The company aims to reach 20,000 stores over the long term.

In addition, the company announced the implementation of a $3 billion efficiency program - $2 billion outside the store in cost of goods sold - to both reinvest in the business and to deliver returns to shareholders through progressive margin expansion and earnings growth.

By the end of fiscal year 2025, the company in the US expects to double hourly income versus fiscal year 2020, through more hours and higher wages.

Earlier today, the company set guidance for fiscal year 2024. Global comps between 5-7 percent, with revenue growth at the low end of the 10-12 percent range and earnings growth of 15-20 percent, reflecting the multiple paths to deliver double digit revenue and earnings growth.

The company sees multiple paths to the shape of the long-term algorithm of comp growth of 5 percent or greater, revenue growth of 10 percent or greater, and earnings per share growth of 15 percent or greater.