Starbucks Navigates Costly Restructuring Phase

Starbucks is in the midst of a significant strategic overhaul. The company’s “Back to Starbucks” plan is beginning to yield positive sales results, but substantial investments and rising expenses are severely impacting profitability. Investors are questioning whether CEO Brian Niccol can stabilize margins while simultaneously restructuring the critical China business.

For its first fiscal quarter, which concluded on December 28, Starbucks reported net revenue of $9.9 billion. This figure represents a 5.5% year-over-year increase and notably surpassed market expectations, which were approximately $9.62 billion. A 4% rise in global comparable store sales drove this performance, fueled by a 3% increase in customer transactions alongside slightly higher average tickets.

Despite the top-line strength, the company’s Read more...