Starbucks Investor Day: “Back to Starbucks” plan, Rewards revamp, and FY2028 margin targets unveiled
View original at finance.yahoo.comStarbucks Investor Day: “Back to Starbucks” plan, Rewards revamp, and FY2028 margin targets unveiled Starbucks logo Key Points "Back to Starbucks" is a reset on coffee, partner-led service and the “Third Place,” with new products and equipment (1971 Roast, Clover Coffee), the rollout of Green Apron Service, and lower-c…
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Starbucks' international business includes more than 22,000 coffeehouses in 88 markets outside the U.S. and Canada, representing roughly one-third of global system sales and 20% of total company revenue in fiscal 2025
80% confidenceFY2028 framework assumes China retail operations are status quo
80% confidencePartner turnover is about half the retail average
80% confidenceMidday and afternoon dayparts already generate $11 billion after 11:00 a.m., and Starbucks believes it can create a true second peak anchored by an afternoon reset ritual
80% confidenceSmart Queue has prioritized more than 100 million café orders and reduced production time by two minutes
80% confidenceMastrena III will cut the time to pull four shots in half and double capacity when it rolls out in 2027
80% confidenceChina could reach 15,000–20,000 coffeehouses long term, up from about 8,000
80% confidenceStarbucks believes it can eventually earn back to 2019 margin levels in the 17%–18% range beyond 2028, contingent on sustained comp performance and continued cost discipline
80% confidenceAbout 40% of international segment revenue came from China
80% confidenceThe turnaround is ahead of schedule, pointing to U.S. and global transaction-driven comp growth in the first quarter of 2026 and improved customer connection scores
80% confidenceStarbucks has focused investments inside the coffeehouse, including the rollout of Green Apron Service across North America, which is the company's largest-ever investment in customer experience
80% confidenceGlobal away-from-home coffee is growing at nearly 8% year-over-year
80% confidenceStarbucks has invested more than $500 million of additional coffeehouse labor, coffeehouse uplifts at $150,000 per store, brand marketing, and partner benefits
80% confidenceCold foam is one of the largest modifiers and represents one-third of Starbucks' billion-dollar customization business
80% confidenceBy the end of fiscal 2026, uplifts will add more than 25,000 seats across the U.S. company-operated portfolio and replace thousands more with more comfortable options
80% confidenceStarbucks Rewards reached more than 35 million 90-day active members in the most recent quarter and represented nearly 60% of U.S. company-operated revenue in fiscal 2025
80% confidenceIf China moves to the contemplated JV structure, fiscal 2028 EPS would be approximately $0.15 lower
80% confidenceStarbucks Channel Development serves 300 million occasions per week globally and generated nearly $900 million in operating income in fiscal 2025 with operating margins above 40%
80% confidenceGreen Apron Service pilots in 650 stores have outperformed the broader portfolio in transaction growth by two points
80% confidenceCold beverages represent about two-thirds of beverages sold at Starbucks
80% confidenceNextGen POS can sell 80% of products with two taps and reduces time to POS proficiency from about three months to less than a week
80% confidenceStarbucks generated more than $12 billion in U.S. revenue before 11:00 a.m. in fiscal 2025
80% confidenceStarbucks' U.S. food business has doubled since 2020
80% confidenceThe China JV shift is expected to raise international segment operating margins to the high teens immediately once the ownership structure changes in the spring, with potential to exceed 20% by FY28
80% confidence