Starbucks is projecting double-digit growth for revenue and earnings per share as the coffee company pushes to reinvent the business, CEO Howard Schultz told investors on Tuesday.
The company’s previous long-term forecast had projected adjusted earnings per share growth of 10% to 12%, revenue growth of 8% to 10% and global same-store sales growth of 4% to 5% for 2023 and 2024.
Starbucks’ new strategy will address how the business and customers are changing. After expanding its menu, the company has also moved into cold coffee drinks that now account for 60% of orders.
Also, rather than ordering at the counter, now customers are going through the drive-thru or using Starbucks’ mobile app.
Over the last year, Starbucks baristas have been unionizing, pointing at poor working conditions and understaffed stores. More than 230 locations in the U.S. have voted to unionize as of Monday, according to the National Labor Relations Board.
On Tuesday, Starbucks announced new student loan repayment tools and a savings account program for all U.S. employees who are not union members.
Just last month the company announced that Laxman Narasimhan will replace Howard Schultz as Starbucks CEO, starting next April.