Starbucks Isn't Done Growing in the U.S.
In 2018, Starbucks (NASDAQ: SBUX) set ambitious plans for growth in China, its second-largest market. It targeted nearly doubling its store count in the country by fiscal 2022 (relative to fiscal 2017), while more than tripling its revenue and more than doubling operating income. There have been bumps along the way, but Starbucks is on track to achieve most of these goals, despite the ongoing COVID-19 pandemic.
Meanwhile, Starbucks intends to close nearly as many stores as it opens in North America -- its largest market -- during fiscal 2021. That might make it seem like the company has run out of room to grow in its home market. But at Starbucks' investor day last week, management reiterated its belief that the coffee giant has ample long-term growth potential in the U.S.
Earlier this year, Starbucks announced plans to close a significant number of stores in North America as it attempts to redesign its business to match changing customer habits. On the company's fourth-quarter earnings call in late October, management said that Starbucks would open 850 stores in the Americas during fiscal 2021 while closing 800 others. That would put its net store growth for the region at just 50 units: an increase of less than 0.3%.
Source Fool.com
