Starbucks Corporation (NASDAQ:SBUX) is hosting its bienniel Investor Day today in New York City, and it will reveal some details about its major plans it hopes will drive growth.
The Seattle-based coffee chain hopes to grow revenue by 10%, EPS by 15-20%, and drive mid-single digit comparable store growth each year over the next five years. It plans to achieve those ambitious goals by opening approximately 12,000 new stores around the world by 2021. That massive expansion would bring Starbucks’ total number of locations to 37,000 by 2021.
In addition to adding new stores, the company hopes its new upscale Roasteries and Starbucks Reserve concepts can help elevate the Starbucks brand and improve the overall customer experience.
Technology is also a big part of Starbucks’ plans for driving growth. The company is promising more innovations within its mobile ecosystem, which has seen widespread adoption through its namesake app that millions of customers use each day.
SBUX is looking to restore investor confidence after a surprise announcement last week that its long-time CEO, Howard Schultz, will step down in April of next year. While Schultz will remain with the company in a reduced capacity, it remains to be seen if incoming chief executive Kevin Johnson will be able to drive the sort of growth that Schultz became famous for.
Starbucks shares were mostly flat in premarket trading Wednesday at $57.44. Year-to-date, SBUX has fallen 4.31%.