Coverage: Starbucks will begin delivery to homes
Starbucks currently is running a pilot delivery program with Uber Eats in Miami and plans to expand it to nearly one-quarter of the company-owned stores in the U.S. by the end of the second quarter.
Zlati Meyer of USA Today had the news:
The coffee giant declined to provide a list of cities that will get delivery in the coming months.
The larger network of delivery-capable stores will also utilize Uber Eats.
Though Starbucks said in April that it was cutting its number of limited-time offers by 30 percent, it’s still serving up new beverages.
The company has identified cold drinks as a growth area and one new menu item Starbucks aficionados will see soon was previewed on Thursday for the assembled analysts and journalists — Spiced Meringue Macchiato.
It’s cold-pressed espresso poured through spiced meringue cold foam on ice with “winter spices of cinnamon, ginger, nutmeg and clove,” according to the investor day menu.
Sarah Whitten and Kate Rogers of CNBC.com also reported that the company cut its earnings projections:
Starbucks shares closed 1 percent higher Thursday but are down nearly 3 percent in after-hours trading. The stock, which is valued at nearly $83 billion, has gained 16 percent since the start of the year.
The company reaffirmed its financial targets for fiscal year 2019. However, it now expects its earnings per share on an adjusted basis to rise at least 10 percent a year over the longer term. Previously, the company predicted 12 percent growth on this basis.
Starbucks said long-term consolidated revenue growth will be between 7 and 9 percent.
Starbucks’ new chief financial officer, Pat Grismer, also said its coffee alliance with Nestle will add to its adjusted earnings per share in fiscal years 2020 and 2021, helping to boost its growth to at least 13 percent in those two years.
Danielle Wiener-Bronner of CNN Business reported that Starbucks is expanding Nitro to all its U.S. stores:
Every company-operated US Starbucks location will offer the nitrogen-infused cold brew coffee, which comes out of a tap, by the end of next year to meet customer demand, the company said on Thursday.
The expansion is part of Starbucks’ plan to sell more products next year — especially as Frappucino sales slip.Cold drinks like iced espresso, cold brew and Refresher juice drinks have driven more than 80% of Starbucks’ beverage growth over the last two years, said Roz Brewer, chief operating officer for Starbucks, during the company’s investor day presentation.