Analyst Explains Why He’s Bullish on Starbucks (SBUX), Says CEO Brian Niccol’s Plan is Working

Core Viewpoint - Analysts are increasingly bullish on Starbucks Corporation (NASDAQ:SBUX), citing the effectiveness of CEO Brian Niccol's turnaround plan and the potential for significant growth in the near future [1][2] Group 1: Analyst Insights - Don Kaufman from Theotrade expressed a bullish stance on Starbucks, noting a recent stock price increase from 79 to 83 and anticipating continued upward momentum [1] - Kaufman plans to utilize a call spread strategy, buying 90 calls and selling 95 calls for an 85-cent debit, indicating a favorable risk-reward scenario [1] - Polen Global Growth Strategy has reestablished its position in Starbucks, highlighting Niccol's practical and achievable multi-pronged turnaround plan [2] Group 2: Operational Improvements - Niccol has identified issues in store operations, marketing, and customer service, which are expected to enhance the customer experience and operational efficiency across 17,000 U.S. stores [2] - The complexity of store operations has led to over-tasked baristas, negatively impacting customer experience, which Niccol aims to address [2] Group 3: Growth Potential - Analysts believe Starbucks retains a strong brand and loyal customer base, suggesting solid growth through improved store productivity, new-store openings, and margin expansion [2] - After a period of mismanagement, there is an expectation of considerable upside for Starbucks, indicating a positive outlook for the company's future performance [2]