Starbucks CEO Wants To Focus On Growing Profits, Unveils Strategy

Starbucks Corporation SBUX, the coffeehouse giant that currently operates 38,000 stores, said it has inked technology pacts with Microsoft Corporation MSFT, Apple Inc. AAPL, and Amazon.Com, Inc AMZN to enhance the customer and partner experience.

The company also plans to double hourly income versus FY20 in the U.S. through more hours and higher wages by the end of FY25.

"I am immensely proud of the work we have done so far in reinventing and re-founding the company for its next phase of growth. I am excited about our multiple paths to revenue growth and earnings, which should give you confidence in our ability to meet our goals," said Laxman Narasimhan, chief executive officer of Starbucks as part of the company's presentation to investors in New York City.

Related: New Starbucks CEO Laxman Narasimhan Takes Reins From Howard Schultz Ahead Of Schedule

The company revealed plans for store expansion to 55,000 globally by 2030, saving $3 billion in costs over three years to deliver returns to shareholders through margin expansion and earnings growth.

The plans to boost the brand through better-run stores, growing the portfolio with more purpose-defined stores, accelerated renovations, and driving further product innovation.

"Over the past five years, we have opened 9,000 stores – 7,000 of which were outside of the U.S.," said Michael Conway, group president, International and Channel Development. "We will become truly global as we create the surround sound of omni-channel strategies in the 86 markets where we sell Starbucks Coffee."

Starbucks is also doubling its global Starbucks Rewards Members from 75 million within five years, expanding digital and technology collaborations to elevate the partner and customer experience.During its Q4 earnings release, the company said it sees FY24 revenue growth at the lower end of the 10% - 12% forecast. SBUX continues to see FY24 adjusted EPS growth of 15% - 20%. It expects global comparable sales growth to be 5% - 7%.

Price Action: SBUX shares closed higher by 9.48% at $100.01 on Thursday.