Starbucks Corp. announced its five-year strategic plan included goals of 10% revenue growth, 15-20% earnings-per-share growth and 12,000 new stores globally by 2021, along with mid-single digit same-store sales growth each year. "I have never been more energized or optimistic about the opportunities ahead," said chairman and chief executive officer Howard Schultz, who will become executive chairman in early April of 2017, with Kevin Johnson, president and chief operating officer, taking over as president and CEO. Starbucks plans to open Reserve Roastery retail locations - a new format of store formed in partnership with Italian foodmaker Princi - starting next year, with the first stores opening in Seattle and Chicago in the second half of 2017, and stores planned for Shanghai, Tokyo and New York City. A new beverage, the Cascara Latte -- made with the fruit of the coffee cherry -- will be introduced in January. New food offerings next year will include new breakfast offerings, more bistro box offerings and organic soups rolled out regionally, with plans to double food growth over the next five years. Starbucks plans to roll out a new Artificial Intelligence ordering system for its app starting in limited beta for iOS in early 2017. The company said it is on track to open more than 5,000 stores in China over the next five years, and said it expects the market to exceed the U.S.'s over time. The company also plans to grow at-home and ready-to-drink products, saying it expects an incremental $1 billion in revenue for the segment, a 75% growth in operating revenue and double the ready-to-drink business outside the U.S. Starbucks shares, which closed on Tuesday at $57.44, dropped 4.3% year-to-date, compared with a 9.1% rise in the S&P 500 .
Continue Reading Below
Copyright © 2016 MarketWatch, Inc.