Starbucks (SBUX +2.96%) may be on the verge of a major expansion, one that investors should note.
The global coffee giant currently operates more than 40,000 stores in 88 markets on six different continents (it has yet to establish an outpost in Antarctica).
More than 22,000 of those stores are outside the U.S. and Canada, a number that could increase substantially in the coming years, according to the company's CEO.
At the Evercore Consumer and Retail Conference in New York this week, Starbucks CEO Brian Niccol said the company can grow aggressively outside the U.S., claiming it could double its store count in other countries. He said that in China alone, the company will go from 8,000 stores today to 20,000 stores "in short order."
Niccol also said Starbucks is looking to open an additional 10,000 stores in the U.S., particularly in underpenetrated areas in the middle of the country, as today the company has a coastal bias.
Image source: Getty Images.
The company began as a single store in Seattle in 1971, selling whole bean coffee, tea, and spices.
The turnaround seems to be working
Starbucks' share price is up 20% so far in 2026, after several difficult years when it moved sideways to slightly down, due to flagging sales and a loss of customers who were tired of the coffee chain's long waits and inconsistent product quality, among other problems.
Niccol, a former CEO at Chipotle, was hired in 2024 to turn the business around, and he seems to be having some success this year.
Among other changes in his "Back to Starbucks" strategy, Niccol cut almost 2,000 corporate workers from its payroll and closed hundreds of underperforming locations. He also had the company invest in stores to increase the timeliness and quality of orders.
In the second quarter (ended March 29), the company increased revenue 9% year over year to $9.5 billion and boosted earnings 14.5% to $0.50 a share. Both figures beat Wall Street's expectations, sending the stock higher. The quarter was the second consecutive period that the company saw traffic growth at its locations. Management also increased full-year guidance for 2026.
The stock is up about 5% since the second quarter results were announced.
NASDAQ: SBUX
Key Data Points
Niccol's turnaround is just a few quarters old, of course, but it looks like the strategy is gaining traction, and the market recognizes it. If his plan to double the international store count comes to fruition, investors might be very happy they invested $1,000 in the stock today.
