Americans love their Starbucks SBUX pumpkin-spice lattes. But as popular as the drink may be, can it alone reverse the fortunes of the financially challenged coffee chain?That’s the question some might be asking in light of recent developments. The popular fall-themed beverage has returned — for the 21st year — to the chain’s menu as of Thursday. But more important: Starbucks has a new CEO, Brian Niccol, coming aboard starting Sept. 9, an announcement that’s been greeted as a positive move by Wall Street fo ...

As Starbucks struggles with comparable sales declines, the coffeehouse giant is evidently asking, “Maybe the Pumpkin Spice Latte will fix it?”The brand announced this week that the drink would be available Thursday (Aug. 22), marking the earliest yet return of the fan favorite, in addition to other returning fall menu items and its new Iced Apple Crisp Nondairy Cream Chai.“Since its debut in 2003 the Pumpkin Spice Latte continues to be Starbucks most popular seasonal beverage and is enjoyed by customers aro ...

Should you invest in the hot fast-casual chain or the struggling coffee purveyor?Chipotle Mexican Grill (CMG 0.49%) and Starbucks (SBUX 1.72%) recently saw their stocks go in opposite directions. On Aug. 13, Chipotle announced that its CEO, Brian Niccol -- who had led the fast-casual restaurant's impressive turnaround over the past six years -- would depart at the end of the month to become the new CEO of Starbucks.Chipotle's stock has declined 6% since then, and Starbucks' stock surged 23%. That price acti ...

Starbucks has given its new CEO Brian Niccol a corporate jet to make the super commute from his southern California mansion to the company’s Seattle headquarters, according to a report.The coffee chain revealed the sweet deal in Niccol’s offer letter last week, which allows the new boss a “small remote office” at his Newport Beach home without having to permanently relocate to the Emerald City some 1,000 away, CNN reported.“Brian Niccol has proven himself to be one of the most effective leaders in our indus ...

Core Insights - Starbucks is facing significant challenges in China, with comparable store sales down 14% in the most recent quarter, highlighting the volatility in its sales performance over the past five years [1][3][11] - The company has over 7,300 stores in China, making it its second-largest market after the US, with a target of reaching 9,000 stores by 2025 [1][12] Sales Performance - Comparable store sales have been negative for the last two quarters, with both the transaction count and average ticket size down 7% year-over-year [3][12] - The average ticket size has been declining steadily over the past two years, indicating a shift in consumer spending behavior [3][12] Competition Landscape - The coffee shop sector in China is experiencing intense competition, with Luckin Coffee being Starbucks' biggest rival, boasting over 20,000 stores compared to Starbucks' 7,300 [5][6] - Other competitors include Cotti Coffee, McDonald's McCafe, and KFC's KCoffee, contributing to a challenging market environment for Starbucks [6] Consumer Preferences - Many Chinese consumers prioritize product over experience when visiting coffee shops, which contrasts with Starbucks' consumer-centric approach [7] - Luckin Coffee's rapid product innovation and focus on local flavors have made it more appealing to Chinese consumers, particularly with popular offerings like sweet and milky beverages [7][8] Strategic Positioning - Starbucks aims to maintain its premium positioning in China, targeting middle-class consumers, particularly white-collar professionals, with prices ranging from 30 to 40 yuan ($4.20 to $5.60) for a 16-ounce drink [9] - Despite this strategy, Starbucks has increased its use of discounting to compete with local rivals, which has led to lower average check sizes [9] Economic Context - China's economic growth has slowed to 4.7% year-over-year in the second quarter of 2024, contributing to cautious consumer spending [11] - The current economic climate presents challenges for all players in the market, including Luckin Coffee, which has also reported a decline in same-store sales [11] Future Outlook - Starbucks remains optimistic about its long-term strategy in China, focusing on locally relevant products and expanding into smaller cities [12] - The company added over 800 new stores in the year leading up to June 30, indicating a commitment to growth despite current challenges [12]

These stocks make up for their market underperformance with growing payouts.Starbucks (SBUX -0.38%) has been in the spotlight since poaching Chipotle CEO Brian Niccol. But even after the recent jump in the price, Starbucks stock is still down year to date while the broader indexes have posted impressive gains.Despite its lackluster performance, it has become a rock-solid dividend stock. So have United Parcel Service (UPS -0.83%) and American Electric Power (AEP 0.29%).Investing $1,000 into each stock should ...

Key TakeawaysStarbucks announced an earlier launch of its fall lineup this year, with products including its popular pumpkin spice latte rolling out starting Thursday.The coffee giant has seen sales decline in the first half of the year, and recently hired a new CEO as it looks to reverse its struggles.Major retailers including Target have also recently expressed optimism that fall and Halloween-themed products can help drive sales in the third quarter after a difficult first half. Starbucks (SBUX) is launc ...

Starbucks has offered its new chief executive the use of a corporate jet for his 1,000-mile commute.The firm said Brian Niccol could continue to live at his home in Newport Beach, California, and use the aircraft to travel to its offices in Seattle, Washington, when he takes up the role next month. The world's largest coffee chain said the 50-year-old would be expected to work at least three days a week at its headquarters, when not otherwise travelling for work.Critics said it undermined Starbucks's pledge ...

Brian Niccol's move affects both of these companies significantly.The restaurant industry was abuzz last week with the surprise announcement that star CEO Brian Niccol was leaving the burrito world for a taste of coffee. He steered Chipotle Mexican Grill (CMG 3.45%) out of a marketing disaster when he took the helm in 2018, and the stock gained more than 950% from the time he took over through to its stock split this June.Starbucks (SBUX -0.25%) investors are hoping that he can bring some fresh brew to thei ...

Plus a look at what Home Depot's quarter says about the economy and more investor news.In this podcast, Motley Fool analyst David Meier and host Ricky Mulvey discuss:Brian Niccol's move from Chipotle to Starbucks.What Home Depot's quarter says about the economy.On Holding's impressive growth.Plus, Motley Fool host Alison Southwick and personal finance guru Robert Brokamp discuss how investors can prepare for a lower-rate world.To catch full episodes of all The Motley Fool's free podcasts, check out our podc ...