Starbucks Predicts 20 Percent Growth by 2022, Market Cap Climbs to $122B
SEATTLE — Starbucks (NASDAQ: SBUX) has predicted a resurgence in its cafes and customer demand for its coffee by 2022, forecasting a growth of more than 20 percent by fiscal 2022.
With this news, shares of the Seattle-based coffee roaster and retailer jumped more than 4 percent in extended trading. The stock, which has a market value of $122 billion, has increased 18 percent so far this year.
Pat Grismer, CFO, reaffirmed the company’s fiscal 2021 forecast with adjusted earnings per share of $2.70 to $2.90 at the company biennial investor day. In 2023 and 2024, Starbucks expects to hit long-term growth targets with adjusted earnings per share growth of 10 percent to 12 percent.
Starbucks also is adjusting its forecast for ongoing long-term revenue growth by increasing it to a range of 8 percent to 10 percent, upgrading its 2018 prediction of 7 percent to 9 percent.
The company is projecting a net new unit growth of 6 percent worldwide as it aims for 55,000 cafes globally by 2030, with a 3 percent growth in the United States and a low-teens net unit growth rate for China. Currently, the company has nearly 33,000 stores worldwide.