During its investor day on Tuesday, Starbucks Corp SBUX provided a roadmap for where the company is going. Interestingly enough, one new initiative aims to meet you at home when you aren't going anywhere.
What Happened: As part of a new partnership with DoorDash Inc DASH, Starbucks will begin testing coffee delivery in Atlanta on Wednesday, per TechCrunch. The coffee giant aims to expand DoorDash delivery nationally in 2023.
Starbucks has an existing partnership with Uber Technologies Inc's UBER Uber Eats. Delivery appears to be trending in the right direction, as the company reported 24% growth year-over-year in delivery sales through the first three quarters of fiscal 2022.
The new partnership comes shortly after DoorDash reportedly cut ties with Walmart Inc WMT. DoorDash and Walmart formed a partnership in 2018 as a pilot to deliver Walmart groceries to customers in the Atlanta metro area, before expanding to several states across the country. Something similar appears to be in the works with Starbucks.
DoorDash also recently announced that drivers would begin delivering items users buy on Meta Platforms Inc's META Facebook Marketplace. The service is being tested in several U.S. cities.
At the beginning of Starbucks' investor day, interim CEO Howard Schultz said: "If I had to pick one word to describe what we’re going to share with you, it would be 'ambition.'"
According to a separate report, Starbucks said it plans to invest $450 million in 2023 across its U.S. stores in an effort to enhance automation and efficiency. The coffee company also plans to expand its mobile ordering experience across all stores.
SBUX Price Action: Starbucks has a 52-week high of $117.80 and a 52-week low of $68.39.
The stock lost 1.38% Tuesday, closing at $87.84.
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