Starbucks Stock Shines as Analysts Mull Early Merits of Turnaround Plan

Core Viewpoint - Starbucks shares have seen an increase as analysts cautiously respond to new CEO Brian Niccol's "Back to Starbucks" turnaround plan, despite mixed opinions on the company's performance [2][3]. Group 1: Analyst Perspectives - JPMorgan analysts noted a narrower-than-expected 4% decline in global same-store sales for the fiscal first quarter, maintaining an "overweight" rating with a price target of $105, suggesting improving business momentum [3]. - Jefferies analysts expressed a bearish outlook, stating there are no early signs of meaningful improvement in same-store sales or traffic trends, maintaining an "underperform" rating with a price target of$76 [4]. - Oppenheimer analysts adopted a neutral stance, reiterating a "perform" rating, acknowledging a favorable setup under Niccol but struggling to identify a clear path for improvement in same-store sales, margins, and earnings per share [5]. Group 2: Company Performance and Expectations - The fiscal first-quarter results showed a less severe decline in same-store sales than analysts anticipated, indicating potential early success for Niccol's turnaround strategy [6]. - CFO Rachel Ruggeri indicated that year-over-year earnings pressure could intensify in the current quarter but is expected to improve in the second half of fiscal 2025 [6].