Starbucks chief financial officer outlines ‘compelling’ growth and opportunity

Starbucks chief financial officer Cathy Smith said the company is firmly rooted in its enduring strengths and transforming with discipline and speed, a strategy designed to restore stronger financial performance that will benefit customers, partners and shareholders.

“Our plan is working, and our turnaround is taking hold. As we look at our Q1 results, we’re seeing what we want in our comps, and we’re making the investments we need to sustain our momentum through this year and beyond,” Smith said. “The financial framework we share today shows how we will translate our ‘Back to Starbucks’ strategy into sustainable, profitable growth – and, in turn, compelling shareholder returns.” 

Smith outlined the company’s financial commitment to shareholders, which included sustainable coffeehouse expansion, steady margin improvement, prudent capital allocation and consistent same-store sales growth. She also highlighted some of the company’s strategic investments already underway, from $500 million in additional labor and selective store design “uplifts” to brand marketing, partner benefits and organizational streamlining.

Smith said the company expects global comps of 3% or better in fiscal 2026, modest margin expansion as it laps investments and earnings per share of $2.15 to $2.40. Looking further ahead, Starbucks projects mid-single-digit revenue growth and operating margins of 13.5 to 15% by fiscal 2028, with earnings of $3.35 to $4.00 per share.

She told investors these results will be powered by balanced comp drivers, a rebuilt new store pipeline and a clear cost efficiency agenda across product sourcing, distribution, store development and G&A. Fiscal 2028 is “a milepost, not the destination,” she said. “Every element is within our control. We’re not relying on external factors or favorable market conditions,” Smith said. “For most of our history, Starbucks delivered exceptional shareholder returns. And we are determined to create meaningful value again. This is our commitment to you, and to every current, and future, shareholder.”