Howard Schultz believes Starbucks ‘ (SBUX) best days are still ahead, and we think it’s easy to see why the influential coffee executive thinks that way after the Club holding laid out its reinvention plan Tuesday. Schultz also talked to CNBC about ambitious goals in China as well as his controversial decision to halt stock buybacks and put extra cash into the business. Starbucks unveiled an in-depth breakdown of its multi-year innovation strategy during an investor day presentation , and Schultz — in the final few months of his third stint as CEO — drove home the corporate vision in an interview with CNBC. “The future of Starbucks,” the outgoing interim CEO Schultz told Jim Cramer, “has never been brighter. Our best days are ahead of us.” All in all, what Starbucks had to say Tuesday validated our decision to invest in the company in late August. With drive-thru ordering and cold beverages soaring in popularity, Starbucks looks well positioned to not only adapt to the new reality but succeed in shaping it. Fresh financial goals “This is a new era of growth for Starbucks,” Schultz told Cramer, noting that “over the next year or so,” the company is aiming to grow both revenue and per-share earnings by double-digit percentages. Starbucks’ old forecast had been for roughly 8% to 10% sales growth, while its EPS guidance range had already been in the double digits. Starbucks also plans to accelerate its store expansion, Schultz said, while still growing comparable sales in existing locations. “In addition to that, we’re going to open up one store every nine hours in China. We have 6,000 stores in China. By 2025, China will be bigger than the U.S., so Starbucks is ready for this moment in time,” said Schultz, who will step aside in April and hand the reins to incoming CEO Laxman Narasimhan, an executive with a track record of success . “At a time in America where people are doubting the consumer, we are not; doubting China, we are not. Inflation is going to come down. China is going to come back, and the equity of the brand has never been stronger at Starbucks Coffee Company,” Schultz said. Details of the reinvention Starbucks is rolling out a number of innovations to help meet its financial targets, set to spend roughly $450 million in upgrades, starting in its fiscal year 2023 that begins in October. Key to the strategy is improvements to how Starbucks baristas make cold drinks. Making these increasingly popular beverages typically requires multiple, time-consuming steps. On Tuesday, Starbucks detailed how its new propriety “Siren System” can significantly shorten the time it takes to make drinks like Frappuccinos. Combined with a new streamlined way to make cold brew, and Schultz said baristas in cafes should better positioned to handle what customers are ordering these days and how they’re ordering it — roughly 50% drive-thru and 25% mobile order and pay. Schultz said that by needing to spend less time making each cold drink, employees in…
Read More: China will overtake U.S. as Starbucks’ biggest market by 2025