Core Insights - Starbucks is focusing on hiring more baristas and increasing their working hours to improve customer service and sales growth, as stated by CEO Brian Niccol [1][2][3] - The company plans to implement the Green Apron Service model in about one-third of its US locations by the end of the 2025 fiscal year [2] - Starbucks' shares fell nearly 7% after announcing its investment in employee hours, which marks a shift from previous staffing strategies that led to understaffing [3][4] Staffing Strategy - The new approach represents a departure from the past few years where Starbucks reduced labor hours and relied on new equipment to maintain service levels [3][4] - Niccol acknowledged that the assumption that equipment could replace labor was inaccurate, leading to the decision to increase labor hours [5] Operational Changes - A pilot program at 700 stores demonstrated that adding labor hours improved service for both mobile orders and walk-in customers [5] - Starbucks is also utilizing a new order sequencing algorithm in 400 stores, which has reduced customer wait times and allowed employees more time to engage with customers [6][7] Customer Experience - The changes aim to create a more comfortable environment for customers, enhancing the connection between baristas and patrons [6][7] - Additional initiatives under Niccol's leadership include requiring purchases for in-store seating and encouraging baristas to personalize to-go cups [7]

Core Viewpoint - Hertz Global Holdings has experienced significant volatility, including a bankruptcy due to the COVID-19 pandemic, followed by a turnaround plan that has not gained traction [1] - Investor Bill Ackman has made a substantial investment in Hertz, believing in its potential for a brighter future [1][2] Investment Details - Pershing Square disclosed the purchase of 12.7 million shares of Hertz, leading to a significant increase in Hertz's stock price [2] - Ackman sees potential in Hertz's rental car business amid tariff uncertainties, particularly due to its fleet of over 500,000 vehicles valued at approximately $12 billion [5][6] Asset Valuation - A 10% increase in used car prices could result in a $1.2 billion gain for Hertz's automotive assets, which is significant compared to its current market capitalization of $2.7 billion [6] - Ackman believes that the market undervalues Hertz's assets, although the recent stock price increase may have corrected this perception [6][10] Operational Improvements - For Hertz to realize its potential, it must achieve specific operational metrics, including revenue per unit of $1,500, daily per-vehicle operating expenses below $45, and depreciation per unit of roughly $300 [8] - The company also needs to improve fleet utilization to 85%, up from a historical average of 80% [8] Future Outlook - Ackman predicts that Hertz could reach $30 per share by 2029, with the stock currently trading below $9, indicating significant upside potential [7] - The company must rotate its fleet away from electric vehicles and reduce operating costs to improve unit revenue and margins over time [9]