Starbucks Is Back, Says CEO to Bloomberg Television

Summary

Starbucks CEO Brian Niccol tells Bloomberg Television that the company's turnaround is working, with recent sales growth driven by transactions, improved service, and restored cultural relevance. He outlines plans for a more personalized rewards program, margin expansion to 13-15% by 2028, about $2 billion of cost savings, and continued U.S. store growth to 5,000 locations. Niccol also highlights China as a major growth market through the Boyu partnership, potentially reaching 15,000-20,000 stores, and sees a multibillion-dollar opportunity in the afternoon daypart.

• Starbucks reported transaction-led growth and said turnaround initiatives are showing up in results.
• CEO Brian Niccol discussed the Green Apron service model, cafe experience, and cultural relevance.
• The rewards program is being relaunched in early March with more personalization and three tiers.
• Management targets 13-15% margins by 2028, supported by about $2 billion of cost savings.
• China is framed as a major growth market with the Boyu partnership potentially expanding to 15,000-20,000 stores.
• U.S. store growth is seen to 5,000 locations, with the afternoon daypart called a multibillion-dollar opportunity.
• Niccol said pricing remains the last lever and labor turnover is well below industry averages.