"Starbucks shares have only climbed a measly 21% over the past five years, significantly underperforming the S&P 500's 95% gain."
"Recent earnings are concerning, with store sales declining and per-share earnings dropping a whopping 47%."
"CEO Brian Niccol's strategy includes streamlining operations and cutting menu items, despite ongoing criticism highlighting a disconnect from investor expectations."
"Investors are losing confidence in Starbucks, as they fail to see significant improvements despite announced changes."
Starbucks is facing serious challenges as it attempts to manage a turnaround led by CEO Brian Niccol. Despite claims of improvement, stock performance has been disappointing, reflecting only a 21% increase over five years compared to the S&P 500's 95%. Store sales have declined, and earnings per share have fallen by 47%. Strategies implemented include streamlining operations and menu cuts. Critics argue that these changes reflect a detachment from investor expectations, leading to waning confidence in the company's future despite any publicly stated progress.
Read at 24/7 Wall St.
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