Starbucks (SBUX 3.19%) is in the midst of a major turnaround. As part of CEO Brian Niccol's "Back to Starbucks" plan, the leading coffeehouse chain is trying to win back customers and get on stronger financial footing.
News of some progress in turning around its lagging same-store sales was not enough to keep share prices of Starbucks (SBUX 3.19%) from dropping, partly because its fiscal second-quarter earnings fell well short of expectations. The stock now trades below the initial surge it experienced following the announcement that former Chipotle head Brian Niccol would assume the position of CEO.
Starbucks is planning to use zero-based budgeting starting during its next fiscal year. The coffee chain is trying to cut expenses to pay for its turnaround efforts.
Starbucks' NASDAQ: SBUX stock price did not respond favorably to the Q2 results and outlook despite Brian Niccol's impact on the company. Surely, the weakness in results, specifically earnings, is a concern, but it is tied entirely to investment in the turnaround.
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
Over the past year, Starbucks has struggled with weaker sales trends, more cautious consumers and competition in the U.S. and in China.
Shares in coffee giant Starbucks Corporation (Nasdaq: SBUX) are down significantly in premarket trading this morning after the chain announced its Q2 2025 earnings results yesterday after the bell.
The Starbucks comeback campaign has created a sense of calm in coffeehouses, according to CEO Brian Niccol, who is confident the company will soon cash in on the vibe shift. The shares, meanwhile, need to stage a comeback of their own.
Starbucks CEO Brian Niccol says the company is "definitely going to be a long-term player in China."
The decision to increase staffing follows pilot tests in a limited number of stores shortly after CEO Brian Niccol joined the company this past fall.
Earnings are dominating the spotlight today, but two names are standing out from the pack.
Earnings are dominating the spotlight today, but two names are standing out from the pack.