Starbucks Is Back, Turning Momentum Into Long-Term, Sustainable Growth

“Starbucks is back,” said Brian Niccol, chairman and chief executive officer. “Customers are responding to our commitment to world-class service, compelling menu innovation, and marketing that truly resonates. We’re putting the customer at the center of everything we do and setting our partners up for success. We know there’s more work ahead, but we’re confident in our plan and see significant opportunity in the U.S. and around the world.”

During the event, Starbucks leaders offered a deep dive into the “Back to Starbucks” plan, sharing details on progress and momentum and highlighting significant opportunities for growth.

• Tressie Lieberman, Starbucks global chief brand officer,shared how the company isdriving demand and unleashing growth potential through innovation and by making Starbucks more visible, relevant and loved everywhere;
• Mike Grams, Starbucks chief operating officer,showcased how our Green Apron Service operating model is delivering progress in throughput, elevating the customer experience, enhancing coffeehouses and growing the portfolio;
• Brady Brewer, chief executive officer for Starbucks International,shared the company’s plan to accelerate global growth with an aspiration to get Starbucks in the hands of as many consumers around the world as possible; and
• Cathy Smith, Starbucks chief financial officer, outlined the company’s financial framework through fiscal 2028 and how investments translate into profitable, sustainable growth.

Key updates provided through the investor event include:

A Clear Financial Framework for Fiscal 2028

Starbucks shared a long-term financial framework built on consistent comparable sales growth, disciplined coffeehouse expansion and operating leverage.

In fiscal 2028, the company expects to deliver:

• 5% or greater consolidated net revenue growth
• 3% or greater global and U.S. comparable store sales growth
• 2%-3% consolidated revenue contribution from new stores
• Over 2,000 net new stores across the global company-operated and licensed portfolio, including approximately 400 net new U.S. company-operated stores
• Non-GAAP consolidated operating margin of 13.5%-15%
• Non-GAAP Earnings Per Share of $3.35-$4.00

“Starbucks has enduring strengths and we are building on them,” said Cathy Smith, chief financial officer. “Our financial framework shows how we will translate our ‘Back to Starbucks’ strategy into sustainable, profitable growth and compelling shareholder returns.”

Progress of Turnaround Takes Hold

The company shared early evidence that its turnaround strategy is continuing to gain traction:

• In the first quarter of fiscal 2026, Starbucks delivered same-store sales growth in the U.S. and every major global market
• Green Apron Service, fully rolled out in North America company-operated coffeehouses, is driving improved service times, higher throughput and stronger customer satisfaction
• Coffeehouse “uplifts” are restoring comfort and community - the company expects to add more than 25,000 café seats across the U.S. by the end of fiscal 2026

“Great execution creates better experiences, which drives repeat visits and fuels growth,” said Mike Grams, chief operating officer. “Connection and convenience are not tradeoffs at Starbucks - we deliver both.”

A Reimagined Starbucks Rewards Experience

Starbucks announced a reimagined Starbucks Rewards program launching March 10, introducing three levels - Green, Gold and Reserve - designed to deliver meaningful value, personalization and engagement for members.

Key features include:

• Faster Star earning as spending increases
• New benefits at every level, including free monthly customizations
• Stars that never expire for Gold and Reserve members
• Exclusive experiences and merchandise for the most loyal members

“Our Rewards program is strong - and we’re building from a position of leadership,” said Tressie Lieberman, global chief brand officer. “Through the filter of member feedback, revenue, and efficiency, we identified clear actions to unlock the next generation of loyalty.”

With Starbucks Rewards driving nearly 60% of U.S. company-operated revenue in fiscal 2025, the company emphasized that small increases in member engagement could unlock significant incremental revenue.

A Robust Innovation Pipeline Across Dayparts

Starbucks also outlined a disciplined menu innovation strategy to win across all dayparts.

“From brewed coffee to macchiatos, our morning loyalists love the rich and wonderful ritual of their Starbucks order. They rely on us to start their day,” Lieberman said. “We see an opportunity to own a new occasion in the afternoon. An afternoon reset. A culture-shaping ritual that Starbucks is perfectly poised to define and own.”

Lieberman shared the company will continue winning the morning while it works to create a new peak in the afternoon.

Menu innovation highlights include:

• New espresso, matcha and chai beverages, including Ube launching this spring
• Introduction of premium customizable chai
• Expansion of the Refreshers platform with Energy Refreshers
• Continued growth in cold beverages, customization and protein-forward offerings
• New globally inspired bakery and food items arriving this year

“We’re not chasing trends,” Lieberman said. “We’re building on a beloved platform and never giving customers a reason to go anywhere else.”

Building an Operational Powerhouse

Grams detailed how Starbucks is becoming a more consistent, customer centric, coffeehouse-first operating company through Green Apron Service, which includes targeted investments in partners, equipment and technology.

Key initiatives include:

• Smart Queue to intelligently sequence café, mobile, drive thru and delivery orders, ensuring timely service across all channels
• Leveraging artificial intelligence to support partners, including supply chain and scheduling tools
• Next-generation espresso equipment like the proprietary Mastrena 3 to unlock additional growth

These initiatives continue to drive faster service while enabling partners to focus on coffee craft and customer connection. Peak throughput increased in the first quarter of fiscal 2026 to less than four minutes on average across café and drive-thru coffeehouses.

“Growth doesn’t require us to become something new, it requires us to be exceptionally good at who we already are,” said Grams. “Throughput is a durable competitive advantage.”

Accelerating Global Growth

The company outlined long term opportunities for growth beyond fiscal 2028 around the world.

Highlights include:

• Up to 5,000 new coffeehouse opportunities across the U.S. alone, and, as average unit volumes grow, that number could double over time
• Double its international coffeehouse footprint over time, approaching 40,000 locations outside the U.S., driven by achieving between 15,000 to 20,000 new coffeehouses in China
• Accelerate international licensed store growth, with international coffeehouses expected to grow at double the rate of North America

“Even with our scale, the U.S. coffeehouse growth opportunity for Starbucks is big and broad,” said Grams. “In fiscal 2028, we expect to ramp to build about 400 net-new coffeehouses across our U.S. company-operated business - with discipline and purpose.”

Starbucks also highlighted its China joint venture with Boyu Capital, shifting the market to a licensed model while retaining a 40% stake.

“The role of our international business is very clear,” said Brady Brewer, chief executive officer - Starbucks International. “We are an asset-light growth driver for Starbucks that increases Starbucks margins.”

Positioned for What’s Next

As the company closed Investor Day, leadership emphasized that momentum is building.

“We’re building a business that delivers the best of Starbucks for every customer, partner and shareholder,” said Niccol. “And we’re positioning Starbucks for unrivaled success, global growth, and profitability for years to come.”

Additional information and presentation materials from Starbucks Investor Day 2026 can be found at investor.starbucks.com.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to responsibly sourcing and roasting high-quality arabica coffee. Today, with a global footprint of more than 41,000 company-operated and licensed coffeehouses and a growing presence in consumer-packaged goods, we are the world’s premier purveyor of specialty coffee. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at about.starbucks.com or www.starbucks.com.

Forward-Looking Statements

Certain statements contained herein are “forward-looking” statements within the meaning of applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections. Our forward-looking statements, and the risks and uncertainties related thereto, include, but are not limited to, those described under the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and in other filings with the SEC, as well as, among others:

• our ability to preserve, grow, and leverage our brands;
• the impact of our brand, marketing, promotional, advertising and pricing strategies, platforms, reformulations, innovations, or customer experience initiatives or investments;
• the costs and risks associated with, and the successful and timely execution and effects of, our existing and any future business opportunities, expansions, initiatives, strategies, investments, and plans, including our “Back to Starbucks” strategy and restructuring plan;
• the costs and risks associated with, and the successful execution and effects of, strategic changes to our ownership and operating structure, including as a result of acquisitions, divestitures, other strategic transactions or entry into joint ventures, including our previously announced plans to form a joint venture with respect to Starbucks retail operations in China;
• our ability to align our investment efforts with our strategic goals;
• evolving consumer preferences, demand, consumption, or spending behavior, reduction in discretionary spending and price increases, and our ability to anticipate or react to these changes;
• the ability of our business partners, suppliers, and third-party providers to fulfill their responsibilities and commitments and our reliance on certain key business partners and suppliers;
• the potential negative effects of food or beverage safety incidents or product recalls, and any perceived association with such incidents;
• our ability to open new stores and efficiently maintain the attractiveness of our existing stores and manage related costs;
• our heavy reliance on the financial performance of our North America operating segment and our dependence on the performance and growth of certain international markets;
• our ability to operate and successfully expand our footprint in international markets, which is influenced by factors distinct from our North America operating segment;
• inherent risks of operating a global business, including changing conditions in our markets, local factors affecting store openings, protectionist trade or foreign investment policies, such as tariffs and import/export regulations, economic or trade sanctions, compliance with local laws and other regulations, and local labor policies and conditions, including labor strikes and work stoppages;
• higher costs, lower quality, or unavailability of coffee, dairy, cocoa, energy, water, raw materials, or product ingredients and related volatility;
• the ability of our supply chain to meet current or future business needs and our ability to scale and improve our forecasting, planning, production, and logistics management;
• the potential impact on our supply chain and operations of adverse weather conditions, natural disasters, or significant increases in logistics costs;
• a worsening in the terms and conditions upon which we engage with our manufacturers and source suppliers;
• the impact of unfavorable macroeconomic conditions and other factors, including economic slowdowns or recessions, rising real estate costs, supply chain disruptions, climate change and extreme weather events, inflation and interest rate fluctuations, government shutdowns, labor unrest, geopolitical instability, disruptions in credit markets and foreign current exchange rate volatility;
• failure to meet market expectations for our financial performance or any announced guidance and the impact thereof;
• failure to attract or retain key executive or partner talent;
• changes in the availability and cost of labor, including any union organizing efforts and our responses to such efforts;
• the impact of, and our ability to respond to, substantial competition from new entrants, consolidations by competitors, and other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods), marketing, category expansion, product introductions, or entry or expansion in our geographic markets;
• evolving corporate governance and public disclosure regulations and expectations;
• the potential impact of activist shareholder actions or tactics;
• failure to comply with applicable laws and complex and changing legal and regulatory requirements, including in privacy and data protection;
• the impact or likelihood of significant legal disputes and proceedings or government investigations;
• the unauthorized access, use, theft, or destruction of our data, or of our proprietary or confidential information and the impact thereof;
• potential negative effects of, and our ability to respond to, a material failure, inadequacy, or interruption of our information technology systems or those of our third-party business partners or service providers, or failure to comply with data protection laws; and
• our ability to adequately protect our intellectual property or adequately ensure that we are not infringing the intellectual property of others.

In addition, many of the foregoing risks and uncertainties are, or could be, exacerbated by any worsening of the global business and economic environment, and new risks periodically emerge. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this release. We are under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise.

Non-GAAP Disclosure

Certain non-GAAP measures contained herein were not reconciled to the comparable GAAP financial measures. The company is unable to reconcile these forward-looking non-GAAP financial measures to the most directly comparable GAAP measures without unreasonable efforts because the company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures for these periods but would not impact the non-GAAP measures. Such items may include acquisitions, divestitures, restructuring and other items, which are fluid and unpredictable in nature. In addition, the company believes such a reconciliation would imply a degree of precision that may be confusing or misleading to investors. The unavailable information could have a significant impact on the company’s GAAP financial results.

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