- Starbucks Corporation (NASDAQ: SBUX) CFO recently reiterated the company’s fiscal 2021 forecast of adjusted earnings per share of $2.70 to $2.90. These are the details.
Starbucks Corporation (NASDAQ: SBUX) CFO recently reiterated the company’s fiscal 2021 forecast of adjusted earnings per share of $2.70 to $2.90 during the biennial investor day, according to CNBC. And by fiscal 2022, Starbucks is forecasting growth of over 20%.
And then in 2023 and 2024, Starbucks is expecting to hit its long-term growth targets with adjusted earnings per share growth of 10% to 12%. During the event, Grismer told investors that the company is slightly raising the forecast for ongoing long-term revenue growth to a range of 8% to 10%
During the last investor meeting in 2018, Starbucks said it is expecting adjusted earnings per share to increase at least 10% annually and consolidated revenue growth of 7% to 9% over the long term. In terms of new technology, Starbucks is going to use artificial intelligence for drive-thru lanes. And the company is planning to double down on new cold drinks.
Starbucks plans to close about 800 underperforming locations and launch new store formats such as urban cafes without seating. And the company will open more locations with drive-thru lanes in the suburbs.
“Based on how customers respond to these new formats, in terms of visitation and frequency, we’ll harness our extraordinary data analytics to learn as we go,” said Starbucks COO Roz Brewer via CNBC.
For the long-term, Starbucks is expecting net new unit growth of 6% worldwide as it strives to reach 55,000 cafes globally by 2030. It’s expecting about 3% new unit growth in the United States, down slightly from a prior range of 3% to 4%.
This week, Starbucks also announced it named Mellody Hobson to lead its board as chair. Hobson is known as co-CEO of Ariel Investments LLC and she replaces Myron Ullman. Ullman is retiring.
“Over nearly two decades, I have seen the company continue to elevate and transform its business — adapting to various market environments and evolving consumer trends,” said Hobson in a statement. “I look forward to working with the board and talented leadership team on accelerating our strategy, supporting our valued partners, and continuing to create significant value for all of our stakeholders.”
