Starbucks opens a new 15,000 square foot store in the chic Capitol Hill area of Seattle. USA TODAY
Shares of Starbucks flirted with all-time highs Thursday after the coffee giant unveiled an ambitious growth plan that will add stores, new formats, menu offerings and alcoholic beverages in an effort to nearly double annual revenue by 2019.
The five-year effort, touted Thursday morning at Starbucks' biennial investor day, are designed to counter consumer shopping patterns, which have shifted to the Internet from shopping malls and Main Street, threatening many retailers' prospects.
Starbucks founder and CEO Howard Schultz says the company began noticing slowing traffic during the 2013 holiday season and began altering growth plans in January.
"The seismic shift in consumer behavior underway presents tremendous opportunity for businesses the world over that are prepared and positioned to seize it," says Schultz, 61. "Over the next five years,
That includes doubling food revenue, broadening sales of its premium Reserve coffee, expanding mobile ordering and launching delivery service. Starbucks Chief Digital Officer Adam Brotman says delivery "is one of our most requested ideas."
Starbucks projects annual revenue of almost $30 billion by 2019. It posted 2014 fiscal revenue of $16.4 billion, up 10.6% from 2013. But overall same store sales were up just 6% in North and South America - which accounts for 14,191 of Starbucks' 21,366 stores - vs. 8% in the year-ago quarter.
Starbucks hit $82.30 in early trading, near an all-time intraday high of about $82.50 in 2013. Shares ended up 84 cents (1%) to $81.31 and were up another 17 cents in after hours trading.
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Starbucks is offering a lucky few customers free food and drinks for 30 years, among other prizes. VPC
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