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

Starbucks stock forecast as CEO hails turnaround: can it hit $116?

by July 30, 2025
by July 30, 2025

Starbucks stock price rose by over 4% after Brian Niccol, its CEO, hailed its turnaround efforts, even as its financial results continued to deteriorate. It rose to $97.20, up by over 25% from its lowest point this year. This article explores its financial results and whether it is a good buy today.

Starbucks financial results download

Starbucks, the world’s largest coffee chain, published weak financial results on Tuesday. Its numbers showed that its same-store sales dropped by 2% in the third quarter, driven by a 2% drop in its comparable transactions.

The North American business continued to deteriorate, with its comparable store sales falling by 2%. Still, despite its ongoing deterioration, the Niccol, who led the turnaround at Chipotle said:

“We’ve fixed a lot and done the hard work on the hard things to build a strong operating foundation, and based on my experience of turnarounds, we are ahead of schedule.”

Niccol has announced several measures to reinvigorate the company’s growth. He has cut costs, and is now working on launching the Green Apron Service program that emphasizes on customer interactions.

At the same time, Niccol is opening fewer stores in the United States and is instead focusing on improving its existing operations. Most importantly, it is returning more seats in its stores as it seeks to make its stores more comfortable again. He said:

“In the U.S., partner engagement is rising, customer connection scores are up, shift completion is at a record high, non-Starbucks Reward customer transactions returned to growth, and more coffeehouses are delivering positive transaction comps.”

Niccol also expects to launch new products, a refreshed application, and an improved reward program. 

Challenges remain

Starbucks is a well-known brand that will return to growth over time. However, it is facing major challenges that are hard to fix. 

First, China, its second-biggest market, continues to face competition, which has led to pricing issues. Most of this competition is coming from brands like Luckin Coffee, which has over 24,000 stores, and Cotti Coffee, which has over 10,000 locations. 

The surging competition means that Starbucks is no longer in the drivers seat in terms of pricing. It is being forced to reduce prices, which is affecting its revenues and margins. 

Its Chinese operations had the same store sales of 2%, while its transactions rose by 6%. However, the average ticket fell during the quarter. These numbers explain why there have been rumors that it would sell its Chinese business. Analysts see the business attracting a valuation of about $10 billion.

The other risk is that some of these Chinese rivals are starting to expand overseas and applying the same model they used in China. Luckin Coffee recently launched its operations in the United States and is expected to keep growing there. 

Starbucks stock price analysis

SBUX price chart | Source: TradingView

The daily chart shows that the SBUX price bottomed at $75 and has now bounced back to $96 . It has just formed the highly bullish golden cross pattern as the 50-day and 200-day Weighted Moving Averages (EMA) crossed each other. This cross is one of the most bullish patterns in technical analysis. 

The stock has also formed a bullish flag pattern. Therefore, the most likely scenario is where the stock continues rising as bulls target the 2024 high of $116, up by 20% from the current level. 

The post Starbucks stock forecast as CEO hails turnaround: can it hit $116? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
LG Energy signs $4.3B battery supply deal
next post
Rolls-Royce share price sends mixed signals before earnings: buy or sell?

Related Posts

Europe bulletin: Zelensky calls for more weapons, Russia...

October 25, 2025

Nvidia stock edges higher amid semiconductor sector rally...

October 25, 2025

AMD stock climbs 7%, breaching $400B market cap...

October 25, 2025

US digest: Jeffries endorses Mamdani, Ford’s stock surge,...

October 25, 2025

Trump seeks Asia mineral deals to ramp up...

October 25, 2025

Lucy Powell elected deputy leader of the UK’s...

October 25, 2025

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

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

  • Europe bulletin: Zelensky calls for more weapons, Russia warns against EU sanctions

    October 25, 2025
  • Nvidia stock edges higher amid semiconductor sector rally and AI boom

    October 25, 2025
  • AMD stock climbs 7%, breaching $400B market cap amid chip sector rally

    October 25, 2025
  • US digest: Jeffries endorses Mamdani, Ford’s stock surge, US sanctions Colombian president

    October 25, 2025
  • Trump seeks Asia mineral deals to ramp up pressure on China’s Xi: report

    October 25, 2025
  • Lucy Powell elected deputy leader of the UK’s Labour Party

    October 25, 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 (3,000)
  • Editor's Pick (295)
  • Investing (185)
  • Stock (2,048)
  • 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

Tesla stock rebounds 5% after volatile week...

August 23, 2025

Uncertainties persist in base metals market regarding...

June 14, 2025

Europe markets open: Stoxx 600 gains, led...

July 2, 2025