Starbucks' plan for stock gains includes more than just discounts and value combos

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Starbucks' plan for stock gains includes more than just discounts and value combos
Laxman NarasimhanWendys CoMcdonald's Corp
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Starbucks has leaned into promotions and value combos in recent months. The company's long-term success requires more than that.

Starbucks ' new breakfast deals may hit the sweet spot for customers. But the coffee giant needs to serve up bigger changes to its operations to get back into Wall Street's good graces. Offering food and beverage combos may boost Starbucks' traffic in the short-term, analysts said, but it's probably not a sustainable path over time given the company's reputation as a premium coffee brand.

mountain Starbucks' year-to-date stock performance. At an investor conference in early June, Starbucks CFO Rachel Ruggeri said the company's marketing efforts and targeted offers were bearing fruit and contributing to sequential revenue growth. Those comments came before the Pairings Menu hit stores.

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