Starbucks Corporation ( NASDAQ:SBUX ) is reaping the benefits of having a solid worldwide footprint, having successful inventions, and supplying digital products. The company is also benefiting from solid comparative performance in North America. Compared to the industry’s growth as a whole, Starbucks stock price has increased by 37% during the past six months.
However, the disappointing results from China, inflationary pressures that are higher than projected, increasing prices, and a tight labor market are all causes for concern.
Key Growth Drivers
Starbucks’ primary objective is to expand its global market share through strategic store openings in both new and existing markets, renovation of existing stores, implementation of technology, strict cost management, aggressive product innovation, and brand building.
Despite the pandemic, Starbucks opened 1,400 outlets for the fiscal year of 2020. During the financial year 2021, the firm launched 1,173 net new outlets across the globe. During the second, third, and fourth quarters of the fiscal year 2022, Starbucks opened 313, 318, and 763 net new locations worldwide. This brought the total number of outlets to 35,711.
The retail giant anticipates that the number of stores it operates in the United States and China will increase by 3% and 13%, respectively, from one year to the next in 2023. The amount that will be spent on capital projects during the fiscal year 2023 is anticipated to be $2.5 billion.
Starbucks is working to strengthen its product portfolio by introducing substantial innovations in the areas of beverages, refreshments, health and wellness, tea, and its core culinary offerings. The company is focusing more on rapidly expanding product categories such as cold brew, draught nitro beverages, and plant-based modifiers such as almond, coconut, and soy milk alternatives. In addit...
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