To remedy this, Starbucks has shifted its strategy to include more cold beverages like teas, Starbucks Refreshers energy drinks and cold-brew coffee. Around 50 percent of all Starbucks purchases include a cold beverage, the company said when it met with analysts in December.
Starbucks executives also plan to leverage increased use of its mobile app for ordering and a rising number of loyalty members. It also recently announced a new U.S. delivery partnership with Uber Eats.
Another facet of Starbucks’ strategy is its Reserve Roasteries — massive 20,000-square-foot stores that are designed to be tourist destinations. Here, Starbucks can experiment with different brewing methods and create innovative beverages.
But Starbucks isn’t out of the woods yet. While the company reaffirmed its financial targets last month for fiscal year 2019, it also lowered its long-term earnings forecast.
During its analyst meeting, the company said it expects earnings per share on an adjusted basis to rise at least 10 percent a year over the longer term. Previously, the company predicted 12 percent growth on this basis.
Starbucks’ new chief financial officer, Pat Grismer, also said its coffee alliance with Nestle will add to its adjusted earnings per share in fiscal years 2020 and 2021, helping to boost its growth to at least 13 percent in those two years.
Overall, it’s emerging that Johnson is planning to take a more measured approach to growth during his tenure as CEO.
Shares of the coffee company are up more than 7 percent over the past year.
