American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Former Starbucks CEO says company needs to revamp its stores after big earnings miss

by admin May 8, 2024
May 8, 2024
Former Starbucks CEO says company needs to revamp its stores after big earnings miss

Former Starbucks CEO Howard Schultz weighed in Sunday on the coffee chain’s dismal latest quarterly report, saying he believes the company will recover if it improves its U.S. stores.

Schultz, who no longer has a formal role within Starbucks, sees an obvious reason for the downturn. He wrote that the company needs to improve its mobile order and pay experience and overhaul how it creates new drinks to focus on premium items that set it apart.

“The stores require a maniacal focus on the customer experience, through the eyes of a merchant. The answer does not lie in data, but in the stores,” Schultz wrote in a letter on Sunday evening posted to LinkedIn.

On Tuesday, Starbucks slashed its full-year forecast after a surprise decline in same-store sales led the company to miss Wall Street’s estimates for quarterly earnings and revenue. Since the report, the company’s shares have fallen 17%, dragging its market value down to $82.8 billion.

Analysts, caught off guard by the chain’s underperformance, have been looking for an explanation for why Starbucks’ U.S. traffic fell 7% in the quarter. The chain could still be dealing with the repercussions of social media backlash related to its position on conflict in the Middle East, Bank of America Securities analyst Sara Senatore wrote in a research note on Monday.

Schultz, who turned Starbucks from a small chain into a coffee giant, stepped down from his latest stint as chief executive a little over a year ago. He handed the reins over to Laxman Narasimhan, who previously was CEO of Lysol owner Reckitt. Schultz also stepped down from the Starbucks board last year.

He appeared to offer advice to his successor as he tries to turn the chain’s sales around.

“Leaders must model both humility and confidence as they work to restore trust and increase performance across the organization,” Schultz wrote.

A year and a half ago, Schultz told CNBC that he does not plan to come back as Starbucks’ chief executive again.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
Social Security now expected to run short on funds in 2035, one year later than previously projected, Treasury says
next post
Dave & Buster’s plan to allow betting on arcade games draws scrutiny

Related Posts

Donald Trump set to receive $1.25 billion worth...

April 24, 2024

Top 4 vulnerable auto stocks to sell after...

March 27, 2025

Netflix inks deal to stream its first NFL...

May 17, 2024

Osamu Suzuki, the driving force behind Suzuki Motor’s...

December 27, 2024

Binance to drop 5 trading pairs on February...

February 12, 2025

US stocks rebound as White House signals trade...

April 12, 2025

Johnson & Johnson to pay $6.5 billion to...

May 7, 2024

HSBC’s $3B share buyback: What it means for...

October 29, 2024

Paris seeing signs of strong travel demand ahead...

June 24, 2024

Why Tesla’s sales are expected to slow down...

January 27, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved