by Christopher Freeburn | November 4, 2012 5:06 pm
Starbucks (NASDAQ:SBUX) will open about 1,200 new coffee shops next year, CEO Howard Schultz said in a Thursday interview on CNBC’s Closing Bell with Maria Bartiromo.
Schultz noted that between 70% and 80% of the new locations would be in overseas markets. He said the company planned to have 1,000 stores operating in both China and Japan by the end of 2013.
In addition to the new stores, the company will remodel 2,000 existing locations.
Investors liked the news, sending Starbucks shares up 9% in Friday trading.
Despite the current economic uncertainty in Europe, Schultz said that Starbucks was beginning to see “positive signs” from its long term strategy there and expressed “cautious optimism” about Europe.
The company is facing questions from European regulators, who allege that the company has reported losses to various European tax authorities, while assuring investors that those same operations were profitable.
Schultz told CNBC that Starbucks has not realized a profit in many European markets and that the company was operating “within the law.” He added that once Starbucks explained its reporting, the matter would be resolved.
Source URL: http://investorplace.com/2012/11/starbucks-plans-major-expansion-store-makeovers/
Short URL: http://invstplc.com/1fvTMiI
Copyright ©2014 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.