Starbucks (SBUX) Bernstein 42nd Annual Strategic Decisions Conference summary

Operational turnaround and innovation

• Operational foundation has strengthened, with improved performance metrics and customer service experiences driven by the Green Apron Service model and GROW scorecard.

• Menu and marketing innovation, including new programs and flavor resets, have increased consumer and cultural relevance.

• Digital rewards program relaunch with a tiered system has seen strong adoption and contributed to improved customer engagement.

• Speed of innovation has accelerated, reducing product development timelines from 18 months to as little as four months.

• Technology investments, such as Smart Queue, have optimized order sequencing and improved service across multiple access points.

Financial performance and cost discipline

• Turnaround progress is ahead of schedule, with recent quarters showing inflection in both top and bottom lines.

• Clear path to long-term guidance, with $2 billion in cost savings targeted over the next three years, supporting margin expansion.

• Cost savings are being realized across G&A, operating expenses, and cost of goods sold, with ongoing procurement and supply chain optimizations.

• Store build costs are being reduced through smaller footprints and an uplift program, replacing costly remodels and minimizing store closures.

• G&A expenses are being held flat, with teams tasked to offset inflation through productivity and technology enhancements.

Growth strategy and future outlook

• Five pillars for comp growth: Green Apron Service, menu innovation, brand digital and Rewards, reimagined afternoon, and coffeehouse reinvestments.

• Afternoon daypart and new product platforms, such as Refreshers, are seen as major growth opportunities.

• Plans to double U.S. company store footprint, leveraging smaller formats and suburban/urban site opportunities.

• Confidence in sustaining sales growth is based on operational improvements, innovation pipeline, and capacity to serve more demand.

• Focus remains on delivering consistent customer experiences, maintaining brand differentiation, and adapting to evolving consumer preferences.