{"id":41328,"date":"2025-07-05T11:35:00","date_gmt":"2025-07-05T11:35:00","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/07\/05\/analyst-make-me-ceo-i-can-turn-around-starbucks-in-china\/"},"modified":"2025-07-05T11:35:00","modified_gmt":"2025-07-05T11:35:00","slug":"analyst-make-me-ceo-i-can-turn-around-starbucks-in-china","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/07\/05\/analyst-make-me-ceo-i-can-turn-around-starbucks-in-china\/","title":{"rendered":"Analyst: \u2018make me CEO, I can turn around Starbucks in China\u2019"},"content":{"rendered":"
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Shaun Rein, a senior China Market Research analyst, didn\u2019t mince words about Starbucks Corp\u2019s (NASDAQ: SBUX) faltering performance in China as he spoke with CNBC on Friday<\/a>.<\/p>\n

According to him, Starbucks is struggling in China even though experiential consumer categories like sports apparel are thriving because it\u2019s been making \u201cmajor strategic mistakes\u201d in the region for years.<\/p>\n

\u201cStarbucks used to be luxury in a cup \u2013 now it\u2019s just expensive coffee in a bad environment,\u201d the analyst noted, adding \u2018I\u2019m very bearish\u201d on Starbucks stock that\u2019s currently down some 20% versus its year-to-date high.<\/p>\n

Starbucks can\u2019t compete on price with local coffee chains<\/h2>\n

Shaun Rein said he had a \u201creally bad experience\u201d at a Starbucks outlet recently, where 40% of the premium menu items weren\u2019t even available.<\/p>\n

In his interview with CNBC, the analyst said SBUX has lost its aspirational appeal in China, a market where it once symbolized sophistication and upward mobility.<\/p>\n

\u201cThey\u2019ve remained expensive, but their outlets are terrible,\u201d he added. Rein also blasted Starbucks for attempting to compete with local rivals like Luckin Coffee on price, arguing \u201cyou can\u2019t compete with Chinese companies on price.\u201d<\/p>\n

Instead, he added, SBUX needs to return to its roots: premium coffee, a refined in-store experience, and a sense of exclusivity to regain that \u201cluxury in a cup\u201d feeling.<\/p>\n

SBUX should team up with local firms in China<\/h2>\n

Shaun Rein is convinced that a team-up with a local firm like Prima Vera, Hillhouse, or Fountain Vest that better understands the domestic market dynamics could help Starbucks regain its glory in the world\u2019s second-largest economy.<\/p>\n

Then, with a mix of candor and ambition, Rein offered an even bolder fix: forget committees and consultants \u2013 just give him the reins.<\/p>\n

\n

If a PE firm buys them, make me CEO because I think I can turn around Starbucks in China.<\/p>\n<\/blockquote>\n

Rein has spent nearly three decades in China advising Fortune 500 firms and has authored several bestsellers on Chinese consumer behavior. <\/p>\n

His firm has worked with global brands on navigating China\u2019s complex retail landscape, and he\u2019s long advocated for deeper localization and cultural fluency.<\/p>\n

Is it worth buying Starbucks stock at current levels<\/h2>\n

Indeed, Starbucks\u2019 same-store sales in China have declined amid a broader price war, while Luckin has surged ahead with over 20,000 outlets and a tech-savvy, app-first model.<\/p>\n

Starbucks, by contrast, has been slow to localize its offerings and store experience, despite launching a \u00a51.5 billion innovation center and rolling out over 78 new products in 2024.<\/p>\n

Wall Street currently has a consensus \u201coverweight\u201d rating on Starbucks stock<\/a>, but the mean target of about $93 is in line with the price at which it\u2019s trading already.<\/p>\n

That said, a 2.58% dividend yield makes SBUX shares at least a bit more attractive to own at current levels.<\/p>\n

The post Analyst: ‘make me CEO, I can turn around Starbucks in China’<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Shaun Rein, a senior China Market Research analyst, didn\u2019t mince words about Starbucks Corp\u2019s (NASDAQ: SBUX) faltering performance in China as he spoke with CNBC on Friday. According to him, Starbucks is struggling in China even though experiential consumer categories like sports apparel are thriving because it\u2019s been making \u201cmajor strategic mistakes\u201d in the region <\/p>\n","protected":false},"author":1,"featured_media":41329,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-41328","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\/41328","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=41328"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/41328\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/41329"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=41328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=41328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=41328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}