Starbucks is taking necessary action, turnaround is ongoing, says TD Cowen's Andrew Charles

Restructuring Plan & Financial Impact - Starbucks announces a $1 billion restructuring plan to improve financial performance [1][3] - The plan includes closing approximately 500 stores in the United States and eliminating around 900 jobs [3] - The goal is to improve same-store sales and margins, aiming for a better start in 2026 [9] Strategic Shift & Operational Changes - Starbucks is implementing a "back to Starbucks" strategy, focusing on improving operations and culture [4][5] - The company is closing underperforming stores, including Starbucks Go concept stores designed only for pickup, and stores where the space or vibe wasn't right [8][9] - Starbucks is rolling out initiatives like the Green Apron program with increased labor and staffing [6] Sales Performance & Menu Innovation - Investors are closely watching for signs of improved sales performance, especially with new menu launches like protein coffee [5][6] - Beverage sales are critical due to their high margin and habitual nature, with a focus on relevant offers and innovation [11] - Food contributes about 20% of sales, with approximately 40% of customers attaching food to their orders [12][13]