Starbucks Restructuring - Starbucks plans to cut its North American store count by about 1% and lay off approximately 900 employees as part of a $1 billion restructuring program aimed at revitalizing the brand [1][2] - The restructuring is seen as necessary to improve efficiency and align with the company's vision of promoting a coffeehouse atmosphere, which some existing stores do not support [2][3] - The company anticipates returning to net unit growth by fiscal 2026, indicating that the contraction is viewed as a temporary measure [2][3] Home Builders Market Analysis - The housing market is experiencing mixed signals, with persistent home shortages contrasted by stagnant existing home sales, which are at levels comparable to the Great Recession [6][7] - New home sales surged by 20% from July to August, reaching a three-year high, while existing home sales remained flat [7][9] - Home builders are increasingly offering incentives, with over half cutting prices and two-thirds providing incentives, the highest in five years, to attract buyers [8][9] Company Performance Insights - KB Home reported earnings that exceeded guidance despite a 7% decline in home sales year-over-year, while Lennar saw a 12% increase in new orders but with reduced sales prices due to incentives [7][8] - The demand for entry-level homes remains strong, but affordability issues are keeping many potential buyers on the sidelines [9][11] - Home builders are benefiting from rising home values outpacing construction costs, creating a favorable profit environment [11][12] Future Outlook - Analysts express cautious optimism about the home building sector, suggesting that if mortgage rates decrease, there could be significant growth opportunities [11][12] - Specific companies like KB Home are noted for their strong profit margins and reduced share counts, making them attractive investments [10][12] - The overall sentiment is that while the home building industry has challenges, there are promising prospects for well-managed companies within the sector [12][13]