Starbucks announced another stage in its leadership shakeup on Tuesday, as CEO Brian Niccol will bring in two more executives who spent time at his former employer Taco Bell while dividing key leadership roles."As we focus on our 'Back to Starbucks' plan, we need a new operating model for our retail team, with clear ownership and accountability and an appropriate scope for each role," Niccol said in a letter to employees shared on the company's website.Before spending six years at Chipotle, Niccol served as ...

Core Insights - Starbucks is set to report its quarterly earnings, which is anticipated to signal improving demand for dining out in the restaurant sector [1][3] - Preliminary results from some restaurant chains indicate a positive trend in sales during the fourth quarter, boosting investor confidence [2][4] Industry Overview - The fourth quarter of 2024 showed better performance for restaurants compared to earlier in the year, with same-store sales growth in October and November, while December experienced a decline attributed to a late Thanksgiving [4] - Casual dining chains are in a turnaround phase, with some, like Chili's, achieving double-digit same-store sales growth, while others are beginning to see improvements [6][10] Company-Specific Insights - Red Robin expects a 3.4% increase in fourth-quarter comparable restaurant revenue, reflecting efforts to revamp its operations and customer engagement strategies [7][9] - Shake Shack's CEO expressed optimism about consumer resilience and spending, indicating a strong start to 2025 [5] - Starbucks is undergoing a turnaround under new leadership, with expectations of operational challenges and a projected same-store sales decline of 5.5% for the upcoming quarter [13][15] Market Sentiment - Executives across the restaurant industry are generally optimistic about 2025, citing improving consumer sentiment and wage growth, despite some chains facing challenges [19] - The industry is preparing for easier comparisons to last year's sales slump, which may enhance growth perceptions this year [19][20]

Key TakeawaysStarbucks is making a series of changes as part of CEO Brian Niccol's "Back to Starbucks" turnaround plan.Baristas will write customers’ names in Sharpie on their cups again, according to reports, and customers will have access to a self-serve condiment bar.Starbucks will require a purchase to use the restroom, but customers ordering "for here" will receive free refills of coffee and tea. Starbucks (SBUX) is making sweeping changes this week that longtime customers of the coffee chain should fi ...

Core Insights - Starbucks is implementing policy changes to address declining sales and traffic ahead of its first-quarter earnings call [1] - The company is reinstating condiment bars, returning to barista-written names on cups, and expanding free refills to all paying customers [2] - CEO Brian Niccol's strategy aims to increase customer visits and reverse a sales slump marked by three consecutive quarters of declining transactions [3] Customer Experience Initiatives - The branding update to "Starbucks Coffee Company" emphasizes a return to customer experience and operational efficiency [4] - New policies include a code of conduct limiting restroom and seating access for non-purchasing customers [2] - The initiatives are part of a broader strategy to reconnect with customers and enhance the classic coffeehouse experience [4][10] Market Challenges - Starbucks faces challenges in balancing its marketing strategy amid evolving market conditions and customer expectations [5] - The company has struggled as competition intensified and market dynamics changed, impacting its previous leadership in the coffee space [7][8] - Analysts remain cautiously optimistic about the brand's strength and potential for recovery, though the path forward is uncertain [6][9] Future Outlook - Analysts see potential for growth and opportunity within the Starbucks brand, despite current challenges [9] - The company's "Back to Starbucks" initiative aims to elevate customer experience by focusing on coffee quality and community engagement [10]

Starbucks Corp SBUX is brewing up big changes ahead of its first-quarter earnings.Starting Monday, only paying customers—or those accompanying them—will be allowed to use its cafés, patios, and restrooms. Free water is out, and baristas have been trained to enforce the new rules.The policy shift comes after North American transactions fell 5% in 2024, marking the first annual drop since the pandemic. Analysts expect same-store sales to decline 4.8% when Starbucks reports earnings on Jan. 28, with estimated ...

Core Insights - Starbucks is implementing a new policy that defines customers as those who make purchases, asking non-paying visitors to leave, marking a shift from its previous policy established in 2018 [1][5] Group 1: Company Performance - Starbucks' North American stores experienced a 5% decline in transactions last year, the first annual drop since the COVID pandemic [2] - Analysts predict a 4.8% decrease in same-store sales for the upcoming quarterly earnings report [2] Group 2: Strategic Initiatives - The new policy is part of the "Back to Starbucks" initiative aimed at enhancing customer experience and prioritizing quality coffee [2] - CEO Brian Niccol emphasized the need to reestablish Starbucks as a community gathering place and simplify the menu to attract more paying customers [3] Group 3: Market Trends - The restaurant industry, including Starbucks, faced sales declines throughout the previous year, influenced by changing consumer spending habits due to persistent inflation [4] - Research indicates that about one-third of consumers have reduced their spending, regardless of their financial comfort [4] Group 4: Social Implications - The new policy has sparked controversy, with advocates for unhoused individuals arguing that Starbucks locations provide a necessary refuge during early morning hours when shelters are closed [6]

Earnings and Revenue Expectations - Starbucks is expected to report fiscal first-quarter net sales of $9.33 billion, down 1% year-over-year [2] - Earnings are projected to be $776.77 million, or 68 cents per share, down from $1.02 billion, or 90 cents per share, a year ago [2] Analyst Ratings and Price Target - 10 out of 16 analysts covering Starbucks have issued "buy" or equivalent ratings, with four giving a "hold" rating and two opting for "sell" [1] - The consensus price target is near $106, suggesting about 7% upside from Friday's closing price near $99 [1] Same-Store Sales Performance - Same-store sales are expected to fall 4.8% year-over-year, according to Street estimates [3] - Jefferies analysts predict a 6% decline in U.S. same-store sales, citing foot-traffic data from Placer.ai [4] Challenges and Strategic Decisions - Starbucks is facing "lingering challenges around product innovation" [4][5] - New CEO Brian Niccol's decision to "pull back on discounting/promos" in favor of broad, brand-focused national advertising has been questioned by analysts [4] Future Outlook and Market Performance - Analysts will be watching for possible 2025 forecast updates after Starbucks did not release a full-year outlook last quarter [5] - Shares of Starbucks are up about 7% over the past 12 months [5]

Starbucks Corporation (SBUX) is scheduled to report first-quarter fiscal 2025 results on Jan. 28, 2025, after the closing bell.In the last reported quarter, the company reported adjusted earnings per share (EPS) of 80 cents, in line with the Zacks Consensus Estimate. The bottom line decreased 24.5% year over year.The company’s earnings met the Zacks Consensus Estimate in two of the trailing four quarters and missed on two occasions with an average surprise of negative 4%.Stay up-to-date with all quarterly r ...

Wall Street analysts expect Starbucks (SBUX) to post quarterly earnings of $0.65 per share in its upcoming report, which indicates a year-over-year decline of 27.8%. Revenues are expected to be $9.31 billion, down 1.2% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone a downward revision of 4.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Ahead of a ...

The Pioneer Of Seeking Alpha's BAD BEAT Investing, Quad 7 Capital is a team of 7 analysts with a wide range of experience sharing investment opportunities for nearly 12 years. They are best known for their February 2020 call to sell everything & go short, & have been on average 95% long 5% short since May 2020. The broader company has expertise in business, policy, economics, mathematics, game theory, & the sciences. They share both long & short trades & invest personally in equities they discuss within the ...