• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Why the Starbucks CEO still backs SBUX stock despite earnings slump

by May 1, 2025
by May 1, 2025

Starbucks Corp (NASDAQ: SBUX) Q2 financials are not at all indicative of how the company’s “Back to Starbucks” 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 improvements are not yet reflected in the numbers.

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

Including this week’s decline, SBUX shares are down about 30% versus their year-to-date high.

Starbucks pilot programmes are showing great results

According to Brian Niccol, the multinational is making significant progress on the turnaround, but “a lot of it is actually happening below the surface.”

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.

As the coffee chain continues to scale these new ideas and do the “right thing” for its customers and partners, the financial performance will follow, he added. 

All in all, customers are getting the “Starbucks experience that they love” at these locations, and that will likely begin driving numbers up as we proceed through the remainder of 2025.

SBUX urges investors to ignore EPS number

Starbucks plans on revamping the digital experience and its rewards programme in 2026 as well to fully “deliver on what we know this brand is capable of.”

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

In order for Starbucks to connect with its customer and offer that differentiated experience that it’s globally known for, we need to “figure out the right staffing and the right deployment so that we get the growth we need,” he added.

Note that the Nasdaq listed firm is improving its cafes with “premium touches”, including better seating to deliver that “differentiated experience” as well.

Starbucks’ business in China remains strong

Starbucks shares remain attractive as the coffee company is not so far seeing “nationalism” hurt its business in China amidst the largest Asian economy’s ongoing trade war with the US.

In fact, Q2 was the best quarter for the company’s China business in a while, revealed Brian Niccol in his interview with CNBC.

“Starbucks continues to be a really strong brand in China. We’re definitely going to be a long-term player in China.” 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.

The post Why the Starbucks CEO still backs SBUX stock despite earnings slump appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Asian FX rally? Poll reveals growing bullishness driven by weaker dollar
next post
Can Lloyds share price surge to 100p after its earnings?

Related Posts

Disney warns YouTube TV subscribers of potential blackout...

October 24, 2025

Top catalysts for the CAC 40 index next...

October 24, 2025

European stocks open higher, buoyed by a wave...

October 24, 2025

NatWest share price forecast as its earnings jump:...

October 24, 2025

Piyush Pandey dies at 70: The ‘Fevicol’ &...

October 24, 2025

Investors brace for Argentina’s midterm vote as Milei’s...

October 24, 2025

Reliance ramps up oil imports as US sanctions...

October 24, 2025

UK retail sales unexpectedly rise 0.5% in September,...

October 24, 2025

Reddit sues AI search engine Perplexity over data...

October 23, 2025

Europe markets open: Stoxx up 0.3% as Kering’s...

October 23, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • AIER’s Everyday Price Index Inches Up Again in Sept 2025

    October 24, 2025
  • Argentina’s Midterm Moment: Brave Reform, or Back to Perónism?

    October 24, 2025
  • Imagine That Growth: Lessons from a Tariff-Free Timeline

    October 24, 2025
  • Disney warns YouTube TV subscribers of potential blackout as carriage talks stall

    October 24, 2025
  • Top catalysts for the CAC 40 index next week

    October 24, 2025
  • European stocks open higher, buoyed by a wave of strong corporate earnings

    October 24, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 5

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 6

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 7

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025

Categories

  • Economy (2,990)
  • Editor's Pick (295)
  • Investing (185)
  • Stock (2,042)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Why Goldman Sachs upgraded this drone stock?

July 1, 2025

Top 4 catalysts for the S&P 500...

July 13, 2025

Construction, cans, and cars: industries on edge...

March 13, 2025