Starbucks Corp (0QZH.IL)
- Yahoo Finance Video
Former Starbucks CEO says company's fix 'needs to begin at home'
Starbucks (SBUX) saw its worst post-earnings performance since 2000 last week after its second quarter earnings fell short of Wall Street's estimates. Following the disappointing results, former CEO Howard Schultz wrote on LinkedIn, "The company's fix needs to begin at home," pointing to US operations as "the primary reason for the company's fall from grace." Yahoo Finance Senior Reporter Brooke DiPalma breaks down how both Schultz and the Street are losing confidence in the beverage giant. All eyes are on Starbucks' pricing strategy as sales struggle. CFO Rachel Ruggeri told Yahoo Finance that the company has no plans to lower its prices despite analysts' skepticism that Starbucks will be able to successfully course-correct. The company pointed to initiatives like menu innovation and in-app offerings to get consumers back in stores; however, DiPalma warns, "many are skeptical that this is just not enough." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Melanie Riehl
- Yahoo Finance Video
Starbucks needs better price incentives on its menu: Analyst
Starbucks (SBUX) stock has dove lower this week after the beverage giant missed second-quarter earnings estimates, the stock's worst post-earnings performance since 2000. Citi Bank Restaurant Sector Analyst Jon Tower joins Catalysts to discuss how Starbucks can turn its performance around and recover losses. "[Starbucks] is effectively, by footprint, the second-largest brand in the United States from a restaurant standpoint," Tower explains, "and the second largest brand probably needs to have a value offering on their menu." He believes that the rising cost of Starbucks' food and beverages is likely causing sales to drop among the average consumer, and the company should start rolling out incentives to get them to return regularly. "What they're charging is not an alluring proposition to the average customer," he adds, pointing to a greater need for cost-cutting measures in Starbucks' greater business model if price easings are not enacted. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Melanie Riehl
- Yahoo Finance Video
Starbucks stock sees worst post-earnings performance since 2000
Starbucks (SBUX) shares are sinking after disappointing second quarter earnings fell short of estimates. The beverage giant reported lower-than-expected revenue, earnings, and same-store sales growth, leading the stock to plummet to its worst post-earnings performance since 2000. Yahoo Finance Executive Editor Brian Sozzi breaks down what this could mean for top Starbucks leadership. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Melanie Riehl
