BUZZ-Street View: 'Back to Starbucks' will take time

Reuters
04-30
BUZZ-Street View: 'Back to Starbucks' will take time

** Starbucks SBUX.O faces challenges in reviving its business, CEO Brian Niccol said on Tuesday, after the coffee giant posted disappointing global comparable sales and profit with inflation and economic uncertainty driving up costs and dampening U.S. demand

** Shares down 6.73% at $79.14 in premarket trading

LONG ROAD AHEAD

** Morgan Stanley ("overweight," PT: $95) says "strategy still seems right, but a reminder that this will take time, and patience may be limited in this market"

** RBC Capital Markets ("outperform," PT: $95) says elevated coffee prices and potential tariffs could be material headwinds to margins at some point over the next few quarters

** TD Cowen ("buy," PT: $90) sees a more balanced recovery in 2026-27

** Jefferies ("hold," PT: $76) says no signs of meaningful U.S. same store sales improvement yet and visibility likely to remain low through F25, as core issues in culture, people, brand, and operations will take time to correct

** "We're not confident the current "Back to Starbucks" strategy can address everything on par with some investor expectations" - Jefferies

(Reporting by Joel Jose in Bengaluru)

((joeljose@thomsonreuters.com))

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