He also pointed to the impact of the company's response to the April arrest of two black men in a Philadelphia store, including the May 29 afternoon closure of 8,000 US stores for anti-racial bias training. "Now, in a lot of ways, it's middle America and the South that presents an opportunity".
Morgan Stanley analyst John Glass, who downgraded the stock to "equal-weight" from "overweight", expressed surprise at Starbucks' expectations for China, and said the overall forecast raised questions about the sustainability of Starbucks' growth back home.
Outgoing Starbucks chairman Howard Schultz acknowledged at the time that the racial bias training closures would cost "tens of millions" but that he saw the closures as an investment in Starbucks employees. Americans can "get that same flavor profile at a much lower price somewhere else".
"The competitive environment has really become a lot stronger in the U.S". Most of the new locations it opens will be in underserved markets. Starbucks just added a new mango-dragon fruit iced drink to its permanent menu in the USA and Canada. Johnson said the chain will focus on less established suburban areas as well as improving its food offerings, which he says will include lunch salads and sandwiches. The company is also preparing to "lean into more plant-based beverages", he said, noting that a new plant-based protein cold-brew drink will be introduced this summer. Its global comparable store sales increased 2 percent. There's going to be a new way for non-rewards customers to earn stars and rewards starting next spring, allowing visitors to cash in on loyalty without fully signing up.
Analysts also pointed to lower-than-expected same-restaurant sales in five of the previous six quarters at Starbucks' Americas business, which is dominated by its roughly 8,000 US cafes.
For a chain that has so many stores that they often in sight of each other, Starbucks said Tuesday is finally ready to pull the plug on more of its losers.
The company also said it would look to cut general and administrative expenses with plans to partner with an external consultant to speed up the process.