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Starbucks (SBUX) Outlines Plans to Expand Workforce Globally
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Starbucks Corporation (SBUX - Free Report) recently announced plans to add more than 240,000 jobs globally (68,000 in the U.S.) by 2021. The declaration was made at the company’s 25th Annual Meeting of Shareholders on Mar 22. Notably, this meeting is the final shareholder event that Howard Schultz will attend as CEO before he is replaced by Kevin Johnson on Apr 3.
The Seattle-based coffee chain outlined plans to open 12,000 new stores globally and 3,400 new stores in the U.S. by 2021. The new stores will boost Starbucks’ unit count by 50%. We would like to remind investors that the chain already has 26,000 locations globally. The announcement is in sync with management’s focus on increasing the company’s global market share by judiciously opening stores in new and existing markets, remodeling existing stores, deploying technology, controlling costs and aggressive product innovation and brand building. The company is currently opening one store per day in China. Also, it recently entered the Italian market.
Schultz, who will stay on as executive chairman of Starbucks, also promised to hire more veterans. In fact, the company is likely to employ 25,000 military veterans and their spouses by 2025. Additionally, Starbucks plans to hire 100,000 of “Opportunity Youth” by 2020. Opportunity youth are young unemployed people, often African American or Latino.
Importantly, Starbucks continues to back its plans to hire 10,000 refugees globally. The company is working with the United Nation’s Refugee Agency to scale up its hiring of refugees. Notably, the company announced this move the day after President Trump implemented his earlier refugee travel ban.
Starbucks’ political stance raised some eyebrows as it might have an adverse impact on its sales. However, Starbucks refuted such concerns and Schultz said that “There is zero, absolutely no evidence whatsoever that there is any dilution of the Starbucks brand, reputation or core business as a result of being compassionate,”.
Meanwhile, the coffee chain plans to integrate its mobile order and pay platform with Amazon’s Alexa and Ford vehicles later this year. Starbucks is introducing many technology innovations to further strengthen its brand, improve efficiency and in-store execution and increase profitability.
Stock Performance
Starbucks’ shares gained 0.6% so far this year, comparing favorably with the 1.7% decraese of the Zacks categorized Retail-Food & Restaurants industry. Although earnings estimates have moved south for the current year, it has remained stable for 2018 over the last 30 days. The company’s solid execution of several initiatives in the U.S., potential to be an international powerhouse in CPG and retail, along with best-in-class loyalty programs and digital offerings are expected to drive profits going forward.
Its three to five year expected EPS growth rate is pegged at a solid 17.8%.
Zacks Rank & Key Picks
Starbucks currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same industry include Darden Restaurants, Inc. (DRI - Free Report) , Papa John's International, Inc. (PZZA - Free Report) and Diversified Restaurant Holdings, Inc. .
Diversified Restaurant has a solid earnings surprise history with an average positive surprise of 108.33%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Darden is expected to witness 11.3% growth in current year earnings, while Papa John's is likely to grow 10.2%. Both the stocks carry a Zacks Rank #2 (Buy).
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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Starbucks (SBUX) Outlines Plans to Expand Workforce Globally
Starbucks Corporation (SBUX - Free Report) recently announced plans to add more than 240,000 jobs globally (68,000 in the U.S.) by 2021. The declaration was made at the company’s 25th Annual Meeting of Shareholders on Mar 22. Notably, this meeting is the final shareholder event that Howard Schultz will attend as CEO before he is replaced by Kevin Johnson on Apr 3.
The Seattle-based coffee chain outlined plans to open 12,000 new stores globally and 3,400 new stores in the U.S. by 2021. The new stores will boost Starbucks’ unit count by 50%. We would like to remind investors that the chain already has 26,000 locations globally. The announcement is in sync with management’s focus on increasing the company’s global market share by judiciously opening stores in new and existing markets, remodeling existing stores, deploying technology, controlling costs and aggressive product innovation and brand building. The company is currently opening one store per day in China. Also, it recently entered the Italian market.
Schultz, who will stay on as executive chairman of Starbucks, also promised to hire more veterans. In fact, the company is likely to employ 25,000 military veterans and their spouses by 2025. Additionally, Starbucks plans to hire 100,000 of “Opportunity Youth” by 2020. Opportunity youth are young unemployed people, often African American or Latino.
Importantly, Starbucks continues to back its plans to hire 10,000 refugees globally. The company is working with the United Nation’s Refugee Agency to scale up its hiring of refugees. Notably, the company announced this move the day after President Trump implemented his earlier refugee travel ban.
Starbucks’ political stance raised some eyebrows as it might have an adverse impact on its sales. However, Starbucks refuted such concerns and Schultz said that “There is zero, absolutely no evidence whatsoever that there is any dilution of the Starbucks brand, reputation or core business as a result of being compassionate,”.
Meanwhile, the coffee chain plans to integrate its mobile order and pay platform with Amazon’s Alexa and Ford vehicles later this year. Starbucks is introducing many technology innovations to further strengthen its brand, improve efficiency and in-store execution and increase profitability.
Stock Performance
Starbucks’ shares gained 0.6% so far this year, comparing favorably with the 1.7% decraese of the Zacks categorized Retail-Food & Restaurants industry. Although earnings estimates have moved south for the current year, it has remained stable for 2018 over the last 30 days. The company’s solid execution of several initiatives in the U.S., potential to be an international powerhouse in CPG and retail, along with best-in-class loyalty programs and digital offerings are expected to drive profits going forward.
Its three to five year expected EPS growth rate is pegged at a solid 17.8%.
Zacks Rank & Key Picks
Starbucks currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same industry include Darden Restaurants, Inc. (DRI - Free Report) , Papa John's International, Inc. (PZZA - Free Report) and Diversified Restaurant Holdings, Inc. .
Diversified Restaurant has a solid earnings surprise history with an average positive surprise of 108.33%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Darden is expected to witness 11.3% growth in current year earnings, while Papa John's is likely to grow 10.2%. Both the stocks carry a Zacks Rank #2 (Buy).
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>