Starbucks Corporation (NASDAQ: SBUX), at its biennial Investor Day event, discussed a vision for the future of the company, and how it is meant to grow. The coffee chain lost billions of dollars due to weakened demand brought by the pandemic, but expects a quick rebound, forecasting growth of more than 20% by fiscal 2022.
In 2023 and 2024, the company experts to reach long-term growth targets, with adjusted earnings per share growth of 10% to 12%.
Starbucks expects sales growth to shift the type of consumers that it attracts, as well as to make a powerful impact on the environment. Starbucks intends to expand its business exponentially while working alongside with a Global Coffee Alliance with Nestle (OTC: NSRGY). The company ultimately desires to care for its customers and to inspire them to be more communal, as opposed to alienated or isolated. In a long-term sense, there are many changes that Starbucks would like to make, especially since the onset of the pandemic.
The company has also started to work alongside customers on more individual levels, making the experience of buying coffee more personable and positive. The global pandemic has created much discord when it comes to obtaining the chance to form meaningful connections at Starbucks. But the company has done its best to make major shifts in order to enhance the level of interconnectedness that customers feel with one another.
In addition to enhancing consumer behaviors, Starbucks would like to bring about new beverage platforms and to take the time to pay closer attention to the digital world as well, given that circumstances prevent face-to-face interactions from happening as frequently. Since customers are typically unable to sit inside the café anymore due to the pandemic, face-to-face dialogue has become increasingly difficult, and Starbucks has somewhat lost its image of being the friendly coffeehouse that it once was. But with the rise of new digital platforms, Starbucks is still hoping to maintain its amiable reputation, although it is not the same as it once was.
Starbucks also aims to be an eco-friendly company in that it wishes to get rid of any toxic waste and to restore the state of the natural earth as it is meant to be. There will be more plant-based options that are environmentally friendly and in support of some of Starbucks's long-term goals of keeping people healthy and whole. For example, there will be oat milk, less animal products, and more meat substitutes.
Although there will be many changes made to the menu, as well as to the manner in which customers interact with one another, Starbucks will nevertheless still be a thriving company that allows for even further room for future growth.