Starbucks Announces Bold Plans for Global Expansion
Starbucks, the global coffee behemoth, is brewing up its largest expansion in years. The company recently revealed plans to open over 2,000 new locations worldwide by Fiscal 2028 — a figure that is three times this year’s expected total. This move comes following mixed first-quarter earnings and signals a strong focus on growth despite the challenges faced last year when underperforming locations were shuttered.
Transforming U.S. Coffee Experiences
In the U.S. alone, Starbucks has ambitious plans with 400 new company-operated stores set to launch by 2028. Beyond this, the company envisions the potential for an additional 5,000 American locations, targeting promising markets in the central, southern, and northeastern regions. These areas are ripe for competition, especially as rival drive-through chains like 7 Brew and Dutch Bros gain traction.
One of Starbucks’ key innovations is the new ‘Ristretto’ store design. This efficient and compact layout offers smaller urban cafes with full-service coffee bars and seating, alongside multi-service hubs for suburban and rural areas, accommodating drive-throughs, mobile orders, and delivery. The Ristretto blueprint optimizes construction costs, cutting them by about 20%, allowing the company to allocate resources more effectively across its ambitious expansion goals.
Expanding the Global Footprint
Starbucks currently operates nearly 23,000 international stores, and executives see potential to grow this number to an astounding 40,000 in the future. The coffee giant’s primary international focus is on China, its ‘crown jewel’ market, where it already operates 8,000 stores. Plans are underway to expand by an additional 15,000 to 20,000 stores in the country, tapping into a growing middle class and rising demand for premium coffee experiences.
This growth will be supported by Starbucks’ recent partnership with Boyu Capital. The deal transitions most international operations to a licensed model, with around 90% of overseas stores expected to be licensee-operated upon deal completion. This strategy allows Starbucks to expand rapidly with reduced capital while local licensees take on operational and financial risk.
What Analysts Are Saying
Financial analysts view Starbucks as a ‘momentum play’ due to visibility on its 2028 earnings guidance. TD Cowen raised Starbucks’ price target from $84 to $89, retaining a Hold rating on shares. Shares currently trade at a high forward earnings multiple, and further growth in North America’s same-store sales — such as a rise beyond the 4% first-quarter growth rate — could drive additional increases in stock value. The average analyst price target now sits at $98.22, indicating continued optimism in Starbucks’ long-term strategy.
Why This Matters
Starbucks’ bold global expansion represents a strong recovery for the company. Its focus on innovation, cost efficiency, and strategic partnerships positions it well to capture emerging opportunities in competitive and international markets alike.
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