Quick Read – Starbucks’ net income cratered from $4.25 billion to a $2 billion run rate, dragging shares down 17% over five years against the S&P’s 70% gain. – CEO Brian Niccol’s menu and service changes at SBUX face stiff competition from MCD and Dunkin’, making double-digit…
me-store sales growth essential for a true recovery. – Investors fixated on Starbucks’ historically strong earnings may be overlooking whether Niccol’s turnaround can ever restore the company’s peak profitability. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and McDonald’s didn’t make the cut. Grab the names FREE today
What can Starbucks’ (NASDAQ: SBUX) management say about its stock? Shares are up 24% this year compared to the S&P, which has risen 9%. Over the last year, it is up 12% compared to the S&P at 19%.
Over the last five years, its shares have fallen 17% compared to 70% for the S&P. The multiyear slide in share price is almost certainly due to a drop in net income. To reach the net income of fiscal 2023, which was $4.25 billion according to Morningstar, is almost impossible.