Starbucks CFO: Here’s Why Our Business is Getting a Jolt


Morgan Stanley’s (NYSE:MS) John Class caught up with Starbucks (NASDAQ:SBUX) CFO Troy Alstead to get an update on business:

U.S. business is strong and the company will now focus on increasing traffic. Starbucks will include morning and drive-thru improvements and increase afternoon demand by adding food products, not just beverages.

CPG (consumer packaged goods) business will grow the fastest in the foreseeable future. K-cup remains near-term top-line driver and could cannibalize some packaged coffee.

International business has been booming. China (NYSE:FXI) is expected to see massive store growth in the next few years. China is expected to have 20% store margins. Brazil (NYSE:EWZ) and other emerging markets (NYSE:EEM)  are also coming into focus.

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