Starbucks Investor Day: “Back to Starbucks” plan, Rewards revamp, and FY2028 margin targets unveiled

Core Insights - Starbucks has launched its "Back to Starbucks" turnaround plan, focusing on core differentiators such as coffee craft, partner-led service, and a welcoming coffeehouse experience [4][22] - The company aims for financial targets including ≥3% comparable sales growth, ≥5% net revenue growth, operating margins of 13.5%–15%, and EPS of $3.35–$4.00 by fiscal 2028 [5][21] Operational Changes - The "Back to Starbucks" plan includes operational resets based on customer feedback, emphasizing timely service and simplified store operations [2][7] - Investments are being made in customer experience, including the rollout of Green Apron Service, which is the largest investment in this area to date [2][12] - Starbucks is shifting from costly remodels to lower-cost overnight store "uplifts" costing approximately $150,000 per store, aiming to add over 25,000 seats across the U.S. by the end of fiscal 2026 [13] Product and Menu Innovations - A new dark roast blend called 1971 Roast and Clover Coffee equipment for freshly ground coffee will be introduced [3][7] - Menu innovations include new espresso, matcha, and chai beverages, with a focus on customization, which has become a significant revenue driver [8][15] - The company plans to expand its bakery offerings and introduce a $2 billion platform for Refreshers, including Energy Refreshers [15] Loyalty Program Revamp - Starbucks will relaunch its loyalty program as "Reimagine" on March 10, featuring three tiers and faster earning potential [6][10] - The program has over 35 million active members and accounts for nearly 60% of U.S. company-operated revenue [10] International Strategy - Starbucks is transitioning approximately 8,000 coffeehouses in China to a licensed model, which is expected to increase international operating margins to the high teens [18] - The international segment includes over 22,000 coffeehouses in 88 markets, contributing about 20% of total company revenue in fiscal 2025 [17] Financial Framework - The company has invested over $500 million in labor, store uplifts, and partner benefits while streamlining non-retail G&A [20] - For fiscal 2026, Starbucks anticipates global comparable sales growth of 3% or better and EPS guidance of $2.15–$2.40 [21]