How Good Has Starbucks (SBUX) Stock Actually Been?

Core Viewpoint - Starbucks is struggling to regain its former glory, with recent earnings reports reflecting a significant decline in performance, leading to a negative sentiment among investors [1][2]. Financial Performance - Over the past one, three, and five years, Starbucks has underperformed the S&P 500 index, with price declines exceeding double-digit percentages in all time frames [2]. - For fiscal 2025, Starbucks reported a net income of $1.86 billion, a substantial 51% decrease from fiscal 2024 [6]. - Net revenue for fiscal 2025 increased by less than 3% to nearly $32.2 billion, but comparable sales fell by 1%, with declines in both the U.S. and China markets [7]. Strategic Initiatives - In mid-2024, Starbucks initiated a turnaround strategy called "Back to Starbucks," aimed at increasing store traffic and reviving growth [8]. - The strategy includes enhancing the in-store experience through measures such as the return of the condiment bar, writing on cups, and a revised code of conduct, with a goal to close customer orders within four minutes [10]. Customer Experience - Despite the strategic changes, the in-store experience remains largely unchanged, with customers feeling less welcome and the atmosphere not conducive to relaxation [11][12]. - The company has been reducing its store footprint in the U.S., but these adjustments are not perceived as effective solutions to inspire customer engagement [13].