Starbucks bounces amid higher profit and sales forecasts, return of buybacks
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Starbucks (NASDAQ:SBUX) has risen 2.4% after hours after the end of its investor day summed up to a boosted outlook for profit and sales, and news that the company is resuming share buybacks.
The company now sees annual growth in adjusted EPS of 15-20% for fiscal 2023-fiscal 2025, and annual global comparable sales growth of 7-9% over that span, feeding global revenue growth of 10-12%.
A raised U.S. forecast supports that view: The company expects annual U.S. comp sales of 7-9% from 2023-2025, up from a previous forecast for 4-5%.
China comp sales, meanwhile, should grow 4-6% annually over that time frame, with net stores growing 13%.
The company expects "progressive" expansion in operating margin in the long term, with growth each year.
The company will make $1B in investments in fiscal 2023, and it's boosting capital expenditures to $2.5B-$3B for the coming three years.
As for capital returns, the company's resumption of repurchases will yield an annual EPS benefit of about 1% starting in fiscal 2024, Starbucks says. Between dividends and buybacks, it expects to return about $20B in capital to shareholders in the next three years.
The company sees a dividend yield of about 2% for the three-year period.
See more about the company's investor event from earlier Tuesday.