Starbucks projects long-term earnings, revenue growth in double-digits as it implements new strategy

Starbucks Chairman and CEO Howard Schultz speaks at the Annual Meeting of Shareholders in Seattle, Washington on March 22, 2017.Jason Redmond | AFP | Getty ImagesOutgoing Starbucks CEO Howard Schultz told investors on Tuesday that the coffee giant is projecting double-digit growth for revenue and earnings per share as it implements a plan to reinvent the business.The revenue forecast was slightly better than its previous long-term forecast, which was given in late 2020.The new strategy is meant to address how the coffee giant’s business has transformed in recent years. Its menu has expanded, and cold coffee drinks now account for 60% of orders year-round and often include add-ons like cold foam or flavored syrups. Rather than ordering at the counter, customers are going through the drive-thru or using Starbucks’ mobile app.These changes to consumer behavior have put stress on baristas and made cafes less efficient.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. In May, Starbucks suspended its fiscal 2022 forecast, citing lockdowns in China, investments in its U.S. employees and high inflation.Shares of Starbucks were down 2.4% in early afternoon trading.This is breaking news. Please check back for updates.

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