Starbucks Sees Room to Double International Stores and Add 5,000 in North America

what happened

Starbucks CEO Brian Niccol said the coffee chain could double its international footprint, which now includes about 22,000 locations outside the U.S. He added that North America has room for at least 5,000 more stores, and that Starbucks plans to resume meaningful expansion in the U.S. He made the remarks in a Friday interview with CNBC, as reported by Stocktwits.

International segment revenue fell 37% in the fourth quarter, mainly because China retail operations moved to a licensed joint venture model. Excluding that effect, international revenue grew 5%. U.S. comparable sales rose 7.7%, and adjusted operating margin expanded by 450 basis points. Starbucks expects about 1,200 net new locations in fiscal 2027. BofA and Baird raised their price targets on SBUX and kept their buy-type ratings. At the time of writing, the shares were down more than 2%.

why it matters

For investors, the key signal is that management sees sustained growth after the turnaround. The company now expects North American comparable-sales growth of about 4% for fiscal 2027, up from an earlier long-term view of at least 3%. Stocktwits data shows retail sentiment remains bearish, even though the stock is up nearly 24% this year, while the State Street Consumer Discretionary Select Sector SPDR ETF has fallen nearly 3% over the same period.

market impact

Starbucks (SBUX): growth plans and raised outlook support interest in the stock, though shares were lower intraday.

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