Core Viewpoint - Starbucks is facing significant challenges in its financial performance despite its global brand recognition and extensive store presence [1][5]. Group 1: Financial Performance - Starbucks has 17,230 stores in the U.S. and a total of 41,097 worldwide, but this extensive reach has not translated into financial success in recent years [1]. - An investment of $10,000 in Starbucks shares three years ago would now be worth $11,060, reflecting a total return of 10.6%, which is underwhelming compared to the S&P 500's total return of 58.2% during the same period [4]. - The company's stock price has fallen 30% since reaching an all-time high in July 2021, and it reported a same-store sales decline of 2% in Q3 2025, marking the sixth consecutive fiscal quarter of decline [5]. Group 2: Turnaround Efforts - Starbucks is currently implementing a major turnaround plan aimed at winning over customers and boosting revenue and profits, which is crucial for shareholder confidence [2]. - The leadership team is taking steps to improve the customer experience by simplifying the menu and investing heavily in labor [6]. - Despite these efforts, the company's price-to-earnings ratio stands at 38.2, suggesting that a successful turnaround may already be factored into the current valuation [6].
If You'd Invested $10,000 in Starbucks Stock 3 Years Ago, Here's How Much You'd Have Today