SEATTLE, USA – Starbucks Coffee Company today outlined its global growth strategy at its 25th
Annual Meeting of Shareholders in Seattle, U.S. The company announced plans to open 12,000 new stores globally and 3,400 new stores in the U.S. by FY21.
The event marked the final Annual Meeting for Howard Schultz in his current role as Starbucks CEO. Kevin Johnson will take over as CEO on 3 April 2017 as Shultz transitions to the role of Executive Chairman to focus on the Starbucks Reserve brand.
Starbucks presented its financial highlights at the meeting, reporting record financial results to shareholders who have seen approximately 18,000% returns since the company’s Initial Public Offering 25 years ago. The company reported a return of over $10 billion in cash to shareholders in the last five years, via dividends and share repurchases, with an average 23% growth rate. In FY16 the company delivered revenues of $21.3 billion.
During the meeting, Johnson announced plans to double the growth of the company’s food business by 2021, and reported the segment had already grown 1.5 times since 2013. Johnson unveiled plans to launch the new Starbucks Mercato menu of fresh grab-and-go lunch items to continue the growth of lunchtime trade.
Another highlight from meeting was the announcement of plans to expand the Mobile Order & Pay platform, integrating it with Amazon Alexa and Ford vehicles later this year. Starbucks reported that its reward member spend has increased by 20% vs. last year, reflecting a ‘more engaged member base that takes advantage of Mobile Order and Pay and personalized marketing offers and recommendations.’
The event closed with the announcement of Starbucks’ new elected Board Members. The company welcomed Rosalind Brewer, former President and Chief Executive Officer of Sam's Club; Jørgen Vig Knudstorp, Executive Chairman of the LEGO Brand Group; and Satya Nadella, CEO of Microsoft Corporation, to the Starbucks Board of Directors.
Image © Starbucks Coffee Company, 22 March 2017