Starbucks CEO Talks Strategy After Q4 Earnings: 'We Are Bullish On The Future'

Starbucks Corp SBUX shares are falling Friday after the company announced weak quarterly financial results and multiple analyst firms lowered price targets on the stock.

What Happened: Starbucks reported quarterly  adjusted earnings of $1 per share, which beat the estimate of 99 cents. The company reported quarterly revenue of $8.15 billion, which came in below the estimate of $8.21 billion.

Starbucks announced a $20-billion buyback plan over the next three years. 

Related Link: Starbucks: Q4 Earnings Insights

Why It Matters: "We grew revenue this last fiscal year at 24%, which is faster than the addressable market of coffee, so we are taking market share in all things coffee," Starbucks CEO Kevin Johnson said Friday on CNBC's "Squawk On The Street."

Johnson noted that Starbucks was able to grow its revenue at impressive rates during the last year despite COVID-19-related restrictions, supply chain challenges and inflationary pressures.

"I think that's an important point to take away from this last quarter and this last fiscal year," he said.

What's Next: Starbucks' most recent quarter was one in which the company focused on the future by investing in its partners, according to Johnson.

Starbucks recently announced a series of planned investments in its partners and employees. 

"Announcements of both operational and wage investments for U.S. partners and company-operated stores are designed to retain and recruit the best people and affirm Starbucks as one of the very best jobs in retail — a reflection of the company’s unwavering belief that success is best when it’s shared," Starbucks said. 

Starbucks is focused on its partners who then in turn take care of Starbucks' customers, which creates the great Starbucks experience that the consumer has come to expect, Johnson told CNBC. 

Starbucks is at an inflection point in which consumer mobility is increasing, so it's the right time to make strategic investments, he said.

"As consumer mobility is increasing, we want to make sure that we are capturing significant market share of customer visits to away-from-home coffee. And if we capture that market share, that market share is permanent."

Johnson told CNBC that the company announced plans to return $20 billion to shareholders over the next three years because Starbucks is so confident in its strategy.

"So we are bullish on the future. We are confident in this investment," Johnson said. 

SBUX Price Action: Starbucks has traded as high as $126.32 and as low as $85.45 over a 52-week period.

The stock was down 7.2% at $105.05 late Friday morning. 

Photo: Şahin Sezer Dinçer from Pixabay.

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