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Starbucks Sets 2028 Profit Targets and Reinstates Guidance as Turnaround Lifts Sales

Investor day presentations mapped a profitability rebuild driven by cost savings, store upgrades, a richer rewards program and targeted expansion.

Overview

  • Fiscal Q1 delivered 4% global and U.S./North America same‑store sales growth and $9.9 billion in revenue, while adjusted EPS of $0.56 missed estimates as margins stayed under pressure from labor investments and elevated coffee costs and tariffs.
  • Management reinstated fiscal 2026 guidance for at least 3% global and U.S. comparable sales growth and adjusted EPS of $2.15 to $2.40.
  • Long‑term goals unveiled for fiscal 2028 include net revenue growth of 5% or more, EPS of $3.35 to $4, and operating margin of roughly 13.5% to 15%, with shares slipping about 1%–2% on the update as some analysts flagged a wide range.
  • Starbucks completed the sale of a majority stake in its China retail business to Boyu Capital and plans more than 2,000 net new international stores by 2028 alongside roughly 400 net U.S. openings that year.
  • Operational plans feature adding 25,000 seats to U.S. cafes by fall, rolling out smaller lower‑cost store formats, launching a tiered loyalty program on March 10, and upgrading equipment including faster espresso machines to improve speed and capacity.