{"id":39315,"date":"2025-05-01T11:37:53","date_gmt":"2025-05-01T11:37:53","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/05\/01\/why-the-starbucks-ceo-still-backs-sbux-stock-despite-earnings-slump\/"},"modified":"2025-05-01T11:37:53","modified_gmt":"2025-05-01T11:37:53","slug":"why-the-starbucks-ceo-still-backs-sbux-stock-despite-earnings-slump","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/05\/01\/why-the-starbucks-ceo-still-backs-sbux-stock-despite-earnings-slump\/","title":{"rendered":"Why the Starbucks CEO still backs SBUX stock despite earnings slump"},"content":{"rendered":"
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Starbucks Corp (NASDAQ: SBUX) Q2 financials are not at all indicative of how the company\u2019s \u201cBack to Starbucks\u201d strategy has been proceeding in recent months, says Brian Niccol, the chief executive of SBUX.<\/p>\n

In a post-earnings interview with CNBC, the industry mogul said Starbucks is finding tremendous success with its ongoing turnaround even though the improvements are not yet reflected in the numbers.<\/p>\n

SBUX missed Street estimates<\/a> in its fiscal second quarter, and that too by a significant margin. Still, Niccol asserted that Starbucks stock remains an attractive long-term holding.<\/p>\n

Including this week\u2019s decline, SBUX shares are down about 30% versus their year-to-date high.<\/p>\n

Starbucks pilot programmes are showing great results<\/h2>\n

According to Brian Niccol, the multinational is making significant progress on the turnaround<\/a>, but \u201ca lot of it is actually happening below the surface.\u201d<\/p>\n

Starbucks already has two pilot programmes in place across hundreds of its US stores, both of which are resulting in improved speeds, increased transactions, and better comps.<\/p>\n

As the coffee chain continues to scale these new ideas and do the \u201cright thing\u201d for its customers and partners, the financial performance will follow, he added. <\/p>\n

All in all, customers are getting the \u201cStarbucks experience that they love\u201d at these locations, and that will likely begin driving numbers up as we proceed through the remainder of 2025.<\/p>\n

SBUX urges investors to ignore EPS number<\/h2>\n

Starbucks plans on revamping the digital experience and its rewards programme in 2026 as well to fully \u201cdeliver on what we know this brand is capable of.\u201d<\/p>\n

CEO Brian Niccol also urged investors during the CNBC interview<\/a> not to focus on the EPS number during the turnaround as SBUX is currently investing more in labour rather than automation.<\/p>\n

In order for Starbucks to connect with its customer and offer that differentiated experience that it\u2019s globally known for, we need to \u201cfigure out the right staffing and the right deployment so that we get the growth we need,\u201d he added.<\/p>\n

Note that the Nasdaq listed firm is improving its cafes with \u201cpremium touches\u201d, including better seating to deliver that \u201cdifferentiated experience\u201d as well.<\/p>\n

Starbucks\u2019 business in China remains strong<\/h2>\n

Starbucks shares remain attractive as the coffee company is not so far seeing \u201cnationalism\u201d hurt its business in China amidst the largest Asian economy\u2019s ongoing trade war with the US<\/a>.<\/p>\n

In fact, Q2 was the best quarter for the company\u2019s China business in a while, revealed Brian Niccol in his interview with CNBC.<\/p>\n

\u201cStarbucks continues to be a really strong brand in China. We\u2019re definitely going to be a long-term player in China.\u201d Note that Starbucks shares currently pay a healthy dividend yield of 3.05%, which makes it all the more exciting to own ahead of a potential recession in the back half of 2025<\/a>.<\/p>\n

The post Why the Starbucks CEO still backs SBUX stock despite earnings slump<\/a> appeared first on Invezz<\/a><\/p>\n

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Starbucks Corp (NASDAQ: SBUX) Q2 financials are not at all indicative of how the company\u2019s \u201cBack to Starbucks\u201d strategy has been proceeding in recent months, says Brian Niccol, the chief executive of SBUX. In a post-earnings interview with CNBC, the industry mogul said Starbucks is finding tremendous success with its ongoing turnaround even though the <\/p>\n","protected":false},"author":1,"featured_media":39316,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-39315","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/39315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=39315"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/39315\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/39316"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=39315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=39315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=39315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}