Starbucks Corp. has appointed Cathy Smith as the company’s chief financial officer and executive vice president, the coffee chain announced in a filing Tuesday.The company said that Smith is joining Starbucks SBUX from Nordstrom Inc. JWN, where she has served as chief financial officer, executive vice president and treasurer since 2023. Smith has previously served as CFO of Bright Health Group, Target Corp. TGT, Express Scripts, Walmart Inc.’s WMT international division, GameStop Corp. GME, Centex, Kennamet ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Executive Changes - Starbucks has appointed Cathy Smith, former CFO of Nordstrom, as the new chief financial officer, replacing Rachel Ruggeri [1][3] - This executive change follows the appointment of Brian Niccol as CEO in September, who aims to revitalize declining coffee sales [1][2] Leadership Transition - Cathy Smith brings extensive experience, having held CFO positions at various companies including Bright Health Group, Target, and Walmart International [3] - Rachel Ruggeri has been with Starbucks since 2001 and served as CFO since 2021; her departure is noted to be without cause, and she will assist in the transition [4] Company Strategy - The leadership changes are part of a broader strategy under CEO Brian Niccol, who has seen several key executives depart and others from his previous roles at Chipotle and Taco Bell join Starbucks [2]

Core Insights - The report titled "Enterprise Tech Ecosystem Series: Starbucks Corporation 2024" provides an in-depth analysis of Starbucks' technology activities, focusing on digital transformation strategies, innovation programs, and technology initiatives [1][4]. Company Overview - Starbucks Corporation is a specialty coffee retailer that roasts, markets, and retails specialty coffee, offering a variety of coffee blends, handcrafted beverages, merchandise, and food items [2]. - The company operates under several brands, including Teavana, Evolution Fresh, Starbucks Reserve, Princi, Seattle's Best Coffee, and Ethos, with a global presence across the Asia-Pacific, Middle East, Africa, Europe, and the Americas [3]. Technology Activities - The report outlines insights into Starbucks' digital transformation strategies and innovation programs, detailing technology initiatives, partnerships, and product launches [4][7]. - It provides an overview of technology themes, objectives, and benefits associated with each initiative, along with estimated ICT budgets and major ICT contracts [7]. Key Topics Covered - Digital Transformation Strategy - Accelerators, Incubators, and Innovation Programs - Technology Focus and Initiatives - Investments and Partnership & Investment Network Map - Key Executives and their roles in technology strategies [7].

Core Insights - Starbucks is experiencing negative comparable-store sales growth for four consecutive quarters and has replaced its CEO to address these challenges [1] - Dutch Bros is rapidly expanding and gaining market share, with its stock increasing by 47% in 2025 [2] Group 1: Company Performance - Dutch Bros reported a same-store sales growth of 6.9% in Q4 2024, following a 5% growth in 2023, while Starbucks is facing negative growth [3] - Dutch Bros generated $1.28 billion in revenue in 2024, marking a 32.6% year-over-year increase, and has expanded its locations from 671 to 831 [5] - Dutch Bros plans to open at least 160 new shops in 2025, aiming for a total of around 1,000 locations, which is still significantly less than Starbucks' approximately 17,000 locations [6] Group 2: Market Position and Expansion - Dutch Bros originated in the Pacific Northwest, a region where Starbucks was founded, indicating a competitive landscape for both brands [7] - The company has the potential to expand to 4,000 to 5,000 locations in the U.S. over the next 10 to 20 years, suggesting significant growth opportunities [7] Group 3: Financial Valuation - Dutch Bros currently has a market cap of $11.8 billion, with its stock up 160% over the past year, raising questions about its valuation relative to its revenue of $1.28 billion [9] - Projections indicate that if Dutch Bros reaches 3,000 locations and increases average store revenue to $2.5 million, it could generate $7.5 billion in systemwide sales [10] - With a potential net income margin of 20%, Dutch Bros could achieve $1.5 billion in net earnings in five years, suggesting a favorable price-to-earnings ratio based on its current market cap [11]

Core Viewpoint - Starbucks is facing significant challenges in the Chinese market, leading to rumors of potential business sales and major layoffs, reflecting the need for strategic changes to ensure future success [1][4][12]. Group 1: Layoffs and Business Challenges - Starbucks announced a global layoff of approximately 1,100 employees, marking the largest in its history, with the last major layoff occurring nearly seven years ago [1][7]. - The company is experiencing a decline in revenue and profitability, with Q1 2025 revenue at $9.398 billion, a year-over-year decrease of 0.3%, and net profit down 23.8% to $781 million [7][10]. - Despite not laying off employees in China, the company is still facing operational challenges, including a significant drop in same-store sales [7][9]. Group 2: Market Position and Competition - Starbucks' market share in China has been eroded from over 60% in 2018 to approximately 40% by 2024, largely due to the rise of local competitors like Luckin Coffee and Manner Coffee [8][18]. - The company has seen a decline in same-store sales, with a notable drop of 6% in Q1 2025, influenced by a 4% decrease in average selling price and a 2% drop in transactions [10][18]. - The competitive landscape has shifted, with local brands appealing to younger consumers through lower pricing strategies, which Starbucks has struggled to match [20][23]. Group 3: Potential Sale and Strategic Partnerships - There are rumors of potential buyers for Starbucks China, including KKR, FountainVest, PAG, and China Resources, indicating a possible shift in ownership or operational strategy [2][17]. - Starbucks is considering a franchise model as a potential solution to its challenges, similar to its strategies in other emerging markets [12][13][16]. - The valuation of Starbucks China is under scrutiny, with estimates exceeding $1 billion, despite declining financial performance [18][19]. Group 4: Strategic Adjustments and Future Directions - Starbucks is attempting to adapt its strategy by focusing on digital transformation and local product innovation, but these efforts have not yet reversed the downward trend in sales [9][24]. - The company has introduced new store formats and membership reforms to enhance customer engagement, but these changes have yet to yield significant improvements [24][25]. - The new CEO, Brian Niccol, is expected to implement strategies that have previously revitalized other brands, emphasizing the need for effective leadership in navigating current market challenges [25][26].

作 者丨贺泓源 实习生谭伊亭 编 辑丨张伟贤 图 源丨新华社 星巴克正掀起一场猛烈改革。 2 0 2 5年2月2 4日，上任不久的星巴克董事长兼CEO布莱恩·尼科尔（Bri a n Ni c c o l）发布内部 信表示，星巴克将裁减11 0 0个目前有人任职的岗位以及"数百个"空缺职位。他此前就宣布了 即将进行的裁员，称公司层级过多。"目的是提高运营效率，加强问责制，降低复杂性，并推 动更好整合。"尼科尔称。 这 是 自 2 0 1 8 年 以 来 ， 星 巴 克 首 次 裁 员 。 为 了 简 化 运 营 、 缩 减 菜 单 ， 星 巴 克 更 减 少 部 分 星 冰 乐、拿铁等混合饮料产品。 在星巴克中国，一场更大的变革正被酝酿。 好消息是，该区域暂时不用裁员， 星巴克中国向2 1世纪经济报道记者透露了此信息。 但 星 巴 克 中 国 被 卖 的 风 声 一 直 没 停 。 在 尼 科 尔 宣 布 星 巴 克 大 裁 员 次 日 ， 有 媒 体 报 道 称 ， KKR、Fo u n t a i nVe st（方源资本）、PAG（太盟投资集团）等多家私募基金有意收购星巴克 中国业务股权。 同 时 ， 华 ...

Core Insights - Starbucks is undergoing a turnaround strategy called "Back to Starbucks," led by new CEO Brian Niccol, aimed at restoring the company's identity as a premium coffeehouse experience [1][2] - The company reported a 4% decline in comparable-store sales, but management is optimistic about early positive signs from the strategic shift [1][2] Strategy Implementation - The "Back to Starbucks" strategy focuses on fundamental changes to refocus on core coffee identity and premium positioning, moving away from discounting [2] - Early results show promising customer metrics, including traffic growth from non-Starbucks Rewards members, despite financial challenges [2] Menu and Operational Changes - Starbucks is simplifying its menu, targeting a 30% reduction in both beverage and food SKUs by the end of fiscal year 2025 to enhance operational efficiency and customer experience [3][4] - The company is addressing mobile ordering bottlenecks, which are identified as the primary challenge for customer experience, by implementing new sequencing solutions [4][5] Customer Experience Enhancements - Management has discovered that mobile order promise times exceeding 15 minutes lead to customer drop-off, and is testing strategies to keep promise times within 12 to 15 minutes to improve satisfaction [5] - The goal is to enhance the in-store experience for customers while maintaining efficiency for mobile orders [5] Future Outlook - Management expresses cautious optimism about the turnaround strategy, emphasizing disciplined investments in labor, marketing, technology, and stores to stabilize the business and position for future growth [6][7] - The focus remains on improving partner experience, menu simplification, and order sequencing technology to enhance overall customer satisfaction [6][7]

Core Insights - Luckin Coffee has solidified its leading position in the competitive Chinese coffee market, achieving significant growth in both operating and net profits in Q4, while Starbucks is struggling to maintain its market share [1][4][7] Group 1: Luckin Coffee Performance - In Q4, Luckin Coffee reported a revenue increase of 36.1% year-on-year to 9.6 billion yuan (approximately 1.3 billion USD), with operating profit soaring by 368% to 995 million yuan and net profit rising by 184% to 841 million yuan [1][2] - Same-store sales for Luckin Coffee continued to decline but at a reduced rate, from -13.1% in the previous quarter to -3.4%, with a positive trend noted in December [2] - The company is investing in supply chain and production facilities, with plans for international expansion starting in Singapore and targeting the U.S. market [6] Group 2: Starbucks Challenges - Starbucks reported a mere 1% year-on-year revenue growth in China for the last three months, with same-store sales declining by 6%, contrasting with a 10% increase in the same period last year [4] - The average transaction volume decreased by 2%, a stark contrast to a 21% increase in the previous year, as consumers shifted towards lower-priced options like those offered by Luckin and Kudi Coffee [4] - Starbucks is actively seeking strategic partners to revitalize its struggling Chinese business, which is valued at approximately 1 billion USD [4] Group 3: Market Dynamics - The coffee market in China is projected to reach a valuation of 16 billion USD by 2025, significantly lower than the 90 billion USD market in the U.S., indicating substantial growth potential [5] - Kudi Coffee, a low-cost competitor, aims to reach 50,000 stores by 2025, leveraging partnerships with retail chains to expand rapidly [6] - Despite Luckin Coffee's growth, its valuation remains lower than Starbucks, with a market cap of 8.4 billion USD and a P/E ratio of 24, compared to Starbucks' 130 billion USD valuation and a P/E ratio of 37 [7][8]

Core Viewpoint - Starbucks reported better-than-expected first-quarter fiscal 2025 results, with earnings and net revenues exceeding estimates, but faced a decline in year-over-year earnings and flat revenues [2][5]. Financial Performance - Earnings per share (EPS) for the quarter was 69 cents, surpassing the Zacks Consensus Estimate by 4.6%, but down 23% from 90 cents in the prior-year quarter [5]. - Net revenues reached $9.398 billion, exceeding the consensus mark of $9.3 billion, and were nearly flat compared to $9.425 billion in the prior-year quarter [5]. - Global comparable store sales declined 4% year over year, driven by a 6% decrease in comparable transactions, partially offset by a 3% increase in average tickets [6]. Operational Insights - The company opened 377 net new stores globally, bringing the total store count to 40,576 [6]. - Operating margin contracted 390 basis points to 11.9% due to increased operating expenses and investments in the "Back to Starbucks" plan [7][8]. Segment Performance - North America segment net revenues were $7.072 billion, down 1% year over year, with comparable store sales declining 4% [9]. - International segment net revenues increased 1% to $1.871 billion, with comparable store sales also down 4% [10]. - Channel Development segment net revenues fell 3% to $436.3 million, attributed to declines in the Global Coffee Alliance and ready-to-drink revenues [12]. Strategic Initiatives - Starbucks aims to enhance sales growth through the "Back to Starbucks" plan, supply-chain efficiencies, menu simplification, and effective marketing campaigns [4]. - The company has suspended its guidance for fiscal 2025 but expects EPS to improve in the latter half of the fiscal year [17][18]. Financial Position - As of the end of the fiscal first quarter, cash and cash equivalents stood at $3.671 billion, up from $3.286 billion at the end of fiscal 2024 [14]. - Long-term debt was $14.312 billion, slightly down from $14.319 billion as of September 2024 [14]. Market Outlook - Estimates for Starbucks have trended downward, with a consensus estimate shift of -8.67% [20][21]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [23].