Starbucks Corporation (SBUX) held its Investor Day event on Thursday. The company highlighted that it is turning recent momentum into long-term sustainable growth. Menu innovation to watch for includes new espresso, matcha and chai beverages, including Ube launching this spring. The introduction of premium customizable chai and the expansion of the Refreshers platform with Energy Refreshers are also expected to be sales drivers.
Starbucks (SBUX) also announced major changes to its Starbucks Rewards loyalty program. The program will now feature a three-tier structure of Green, Gold, and Reserve levels. The new program will launch on March 10.
The update shifts earning and redemption mechanics to emphasize activity and spend, rather than just payment method, with Stars now accruing based more directly on what customers purchase, while still offering bonus Stars for digitally reloading a Starbucks Card and other engagement behaviors. The green tier will cover newer or less frequent members (under 500 Stars in a 12-month period) and includes core benefits such as a free birthday item, personalized offers, early access to select menu items, in-app games, and the new “Free Mod Mondays,” which grant one complimentary drink customization on a selected Monday each month. Stars at the green level generally have a six-month life but can be kept active with monthly activity like making a purchase, reloading, or redeeming a reward.
Starbucks’ (SBUX) Gold tier of its rewards program starts at 500 Stars within a year and includes all the Green benefits plus non-expiring Stars, a longer seven-day redemption window for the birthday reward, more frequent Double Star Days, and a higher earning rate.
The top Reserve tier of the new program is reached at 2,500 Stars in 12 months and layers on premium perks such as exclusive merchandise and experiences, access to a global merchandise shop, a personalized Reserve card, at least six additional Double Star Days annually, and the highest earn rate at 1.7 Stars per dollar.
Starbucks (SBUX) expects to boost engagement with an already considerable and growing loyalty base with the changes. The company disclosed that its Starbucks Rewards program reached a record 35.5M active members in the U.S. by the end of Q4.
On the guidance front, Starbucks (SBUX) said it expects FY28 revenue growth of 5% or greater, 3% or greater global and U.S. comparable store sales growth, a non-GAAP consolidated operating margin of 13.5% to 15.0%, and non-GAAP earnings per share of $3.35 to $4.00. “Starbucks has enduring strengths, and we are building on them,” stated CFO Cathy Smith. “Our financial framework shows how we will translate our ‘Back to Starbucks’ strategy into sustainable, profitable growth and compelling shareholder returns,” she added.
Shares of Starbucks (SBUX) were down 1.4% in early afternoon trading.