Starbucks CEO Brian Niccol wants to return the company to its coffeehouse roots. Analysts are optimistic, though they say the company will face near-term headwinds.
Starbucks' new chief executive announced a series of changes this week aimed at drawing back customers as the company navigates unionization pressures, declining foot traffic, and frequent leadership changes. Brian Niccol, who took over as CEO in September, told analysts on an earnings call this week that the company's financial results "were very disappointing" as sales at U.S. stores opened for at least a year declined 6%, which was driven by a 10% decline in transactions.
Alex Fasciano, equity analyst at CFRA Research, believes the changes already announced, such as the simplified menu and new pricing architecture, will enhance the customer experience, although he cautioned that there may be near-term headwinds related to pricing, In particular, the in-store design changes, such as the improved coffee condiment bars and comfier furniture, will "likely require significant investments" in fiscal year 2025, Fascino told FOX Business.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Starbucks new CEO Brian Niccol to cut back on discounts and coffee promotionsBrian Niccol ordered his deputies to quietly reduce the plethora of discounts that were introduced to lure back inflation-weary customers.
Read more »
7 ways that Starbucks CEO Brian Niccol plans to change the coffee chainStarbucks is planning to bring back Sharpies and ceramic mugs and cut back its menu.
Read more »
A fast-changing Chinese coffee market awaits Starbucks CEO Brian NiccolHere's what new Starbucks CEO Brian Niccol might see when he
Read more »
Starbucks will discontinue Oleato olive oil drinks at U.S. cafes in early NovemberNew CEO Brian Niccol has pledged to simplify the Starbucks menu.
Read more »
Starbucks will discontinue Oleato olive oil drinks at US cafes in early NovemberNew CEO Brian Niccol has pledged to simplify the Starbucks menu.
Read more »
Jim Cramer says don't sell Starbucks stock on the new CEO's painful moves to right the shipNew Starbucks CEO Brian Niccol has cleared the decks for his turnaround plan.
Read more »