Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Business

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

by May 7, 2024
May 7, 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
Next Generation DLE Provider Electralith Produces 99.9% Pure Battery-Grade Lithium Hydroxide from Mandrake Brine

Related Posts

Golf’s PGA Tour and LIV merger is the...

June 12, 2023

Walmart is using its own fintech firm to...

June 11, 2025

Florida judge tosses out Disney’s lawsuit against Gov....

February 1, 2024

Under Armour is laying off workers as retailer...

May 17, 2024

JPMorgan Chase CEO Jamie Dimon on Trump tariffs: ‘Get...

January 23, 2025

General Motors idles another auto plant, sending 2,000...

September 21, 2023

It was a strong week for retail earnings....

June 1, 2024

Rite Aid wrongfully used facial recognition to accuse...

December 22, 2023

Peloton CEO Barry McCarthy to step down, company...

May 3, 2024

Big moments from the beginning of the Sam...

October 15, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


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

    Latest

    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

    • Lithium Market Update: Q3 2025 in Review

    • Despatch of SPP Offer Documents

    • Crypto Market Update: FalconX to Buy 21Shares, Senate Democrats Call Out Trump Envoy

    • Apollo Silver

    • Blackrock Silver Commences Phase 2 Hydrology Program, Geotechnical Evaluation and Seismic Survey on the Tonopah West Project

    Categories

    • Business (1,401)
    • Investing (3,062)
    • Politics (3,699)
    • Stocks (1,828)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.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 moneycontrolplace.com | All Rights Reserved