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Starbucks unveiled new long-term financial targets on Thursday at an investor presentation in New York City.
By fiscal 2028, the coffee chain is projecting global and U.S. same-store sales will grow at least 3%, revenue will rise at least 5% and earnings per share of $3.35 to $4.
"This is just a waypoint in our turnaround. Our ambitions extend well beyond this timeline," CEO Brian Niccol said.
CFO Cathy Smith is expected to share more about the company's long-term projections later in the investor presentation.
When Starbucks suspended its outlook in October 2024, its long-term forecast projected global same-store sales would grow at least 5%, revenue would climb at least 10% and earnings per share would rise at least 15%.
Shares of the company rose more than 2% in premarket trading. Including that stock move, shares have fallen about 10% over the last year, dragging the company's market value down to about $108 billion. In addition to the company's challenges, investors are concerned about the broader pullback in consumer spending and higher coffee prices.
The investor day comes a day after the company released its fiscal first-quarter earnings report.
For the first time in two years, the coffee chain's traffic rose, fueling same-store sales growth of 4%. The company has made progress on some of its goals, like making every drink in under four minutes, Niccol said on CNBC's "Squawk Box" on Thursday morning.
"This is really just the beginning," Niccol said of the company's turnaround.
Menu changes like protein cold foam have helped Starbucks draw both loyal and infrequent customers, he told CNBC's Andrew Ross Sorkin. Ahead, the company has more menu innovation on deck, plus changes to its rewards program and an improved digital experience, he added.
But while Starbucks' turnaround strategy is bearing fruit on the top line, investments in its restaurants and labor weighed on profits during its fiscal first quarter. The company's quarterly earnings per share missed Wall Street's estimates.
Executives on Wednesday also shared the company's first annual forecast since Niccol suspended its outlook more than a year ago, shortly after taking the helm at Starbucks. For fiscal 2026, Starbucks is projecting adjusted earnings per share in a range of $2.15 to $2.40 and global and U.S. same-store sales growth of at least 3%.
"In fiscal 2026, we're going to be shifting to play offense and to innovate," Niccol said during his presentation on Thursday. "We're not finished with our 'Back to Starbucks' plan or our broader transformation, but I am confident in our strategy, our progress, the pace of change and the opportunity ahead of us."
Under Niccol's leadership, the company has been trying to get "back to Starbucks," after years of prioritizing mobile orders and profits at the expense of the customer and employee experience. Small touches have included bringing back seating to its cafes, requiring baristas to write messages on cups again and trimming its menu.
Bigger swings, like revamping cafes to be cozier and staffing more baristas, are dragging down earnings, but executives expect that margins will eventually recover.
