Starbucks (NASDAQ:SBUX) today is holding its first Investor Day since December 2018, with shares going on a 72% run since the last event.
While the pandemic hit the coffee chain hard at first, resulting in a 40% Y/Y loss in sales in the second quarter, CEO Kevin Johnson doesn’t expect the company to slow down.
He sees business in China fully recovering in the current quarter and forecasts earnings in the fiscal year ending September 2021 will beat those of 2019.
The pandemic has been hard on Starbucks’s smaller rivals, with market research provider Euromonitor predicting the U.S. will lose at least 2,000 coffee shops this year.
Some of things keeping Starbucks competitive are overhauling cafes, raising employee wages and turning to AI, while Johnson will explain further growth efforts later today.
Fun fact: The event will feature a virtual coffee tasting, with samples of Starbucks’ holiday blend sent in advance to analysts.
