At its latest Investor Day, coffee giant Starbucks unveiled its growth plans and projections for long-term earnings.
SEANA SMITH: All right, my play today is Starbucks. Now, the company holding its investor day-- a couple of big announcements, that includes it plans to bring DoorDash national next year. It's going to invest $450 million across existing US stores to enhance automation and efficiency.
It's going to add new coffee equipment, expand its loyalty program. Interim CEO Howard Schultz also adding that he expects record new store growth, double-digit revenue, and earnings per share growth, as well as a return to share buybacks soon. China is going to be a big focus here for the company.
It's planning to invest $220 million in the country over the next three years, also sees 9,000 stores there by 2025. And of course, this announcement, Dave, comes as Starbucks really looks to boost its business. We've talked about this time and time again-- Starbucks has been suffering so far this year. Shares off just around 25% year-to-date. Hopefully, this turnaround plan, or this initiative, pays off here in the long run.
DAVE BRIGGS: Yeah, I think the aggressive push that they've taken to take on the whole unionization effort is going to be successful. As much talk as we devote to the union push, we're still talking about 200-plus stores of their more than 9,000-- just around 2%.
They're paying baristas better. They're getting better working conditions. They're reworking the entire store to make their life, their job easier. So that, I think, is a big one.
You get those China COVID lockdown start to open up-- that was the biggest loss for Starbucks over this past year. And as that begins to open up, things certainly will. Also interesting in this whole plan, revealing just how big a shift there has been to cold beverages fascinates me. 60% of the course of the year, 75% over the prior quarter. So it really has been a major shift.