Starbucks’ (NASDAQ: SBUX) stock is down 10% in the last year, while the S&P 500 is 12% higher. Over five years, the stock is down 20% while the S&P is up 62%. Recently, The Wall Street Journal wrote that “Starbucks Has Its Shine Back, CEO Brian Niccol Says.” Not so. Niccol began his tenure as the coffee store company’s Chairman and CEO on September 9, 2024. Not yet.
After years of weak quarters, Niccol’s only evidence was a better-than-bad, mediocre one. Revenue was up 5% to $9.9 billion. However, the bottom line dropped 62% to $293 million (EPS $.26). Niccol commented, “Our Q1 results demonstrate our ‘Back to Starbucks’ strategy is working, and we believe we’re ahead of schedule.” The bottom line doesn’t point in the direction.
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