Should You Buy Starbucks Stock Before July 29?

Core Viewpoint - Starbucks is facing challenges in adapting to a changing market, but it is working on a recovery strategy under new leadership, with potential for growth and improvement in operations [1][3][10] Group 1: Current Challenges - Starbucks has experienced leadership instability with four CEOs in four years, struggling to manage high customer demand and mobile ordering effectively [3] - The company has seen declining sales and profits, with a 2% revenue increase in the second quarter of fiscal 2025, but comparable sales down by 1% [4][5] - Operating margin and income have decreased significantly, attributed to restructuring and turnaround costs, with earnings per share dropping 50% to $0.34 [5] Group 2: Strategic Initiatives - New CEO Brian Niccol emphasizes a customer-focused approach, improving worker satisfaction, managing costs, and enhancing operations as key to success [7] - The "Back to Starbucks" strategy aims to restore the brand's identity as a community destination while modernizing its image [7] - Initiatives such as a new shift trading system and expanded refill policies have led to improved worker satisfaction and customer engagement [8] Group 3: Market Response and Future Outlook - The market responded positively to the second-quarter update, with Starbucks stock remaining elevated, despite a high forward P/E ratio of 32 [9] - The company plans to double its U.S. store count, indicating a long-term growth potential [10] - Starbucks is implementing new app features for customer convenience and has seen a 40% increase in sales by removing sugar from matcha products [11]