Starbucks’ Horrible Future

Core Insights - Starbucks Corp. is experiencing a decline in stock performance, with its best year likely behind it in 2021, marked by a series of CEO changes [1][4] - The latest CEO, Brian Niccol, has not succeeded in reversing the company's fortunes, as evidenced by a significant drop in stock price from a peak of $117 to $87 [2][6] Group 1: CEO Performance and Strategy - Brian Niccol was anticipated to be a turnaround leader due to his previous success at Taco Bell and Chipotle, but his strategies have not yielded tangible results [5] - Niccol's approach has focused on returning Starbucks to its community coffeehouse roots, emphasizing friendly service and quick order fulfillment [5] - The company has divested 40% of its operations in China for $4 billion, a move that raises concerns about its future growth potential, especially as China was expected to be a key market [6] Group 2: Financial Performance - For the fiscal year ending September 29, Starbucks reported a revenue increase of 3% to $37.2 billion, but earnings per share fell from $3.31 to $1.63 [7] - Niccol claims that the "Back to Starbucks" strategy is taking hold, although this assertion lacks supporting evidence [7] Group 3: Labor Relations - Starbucks workers are planning strikes in 40 cities, which, while affecting a small number of stores, has garnered significant media attention and reflects negatively on the company [7]