Starbucks’ Turnaround Plan Faces Growing Pains and a Tough Earnings Quarter

Starbucks Corporation is pressing ahead with its “Back to Starbucks” overhaul under CEO Brian Niccol, but analysts say the results expected this week reflect how long a full recovery may take. The company is projected to report adjusted earnings of $0.56 per share on revenue of approximately $9.3 billion for its fiscal fourth quarter — compared with $0.80 per share a year earlier. Same‑store sales are forecast to fall again — for the seventh consecutive quarter — albeit by a modest 0.3% (an improvement from the prior quarter’s 2% drop). Starbucks has initiated a roughly $1 billion restructuring, closing hundreds of stores and cutting 900 corporate roles as part of the turnaround. Yet headwinds remain: shifts in consumer spending, high food‑and‑labor costs and competition from lower‑price rivals all weigh on the chain’s margins and growth timeline. Many analysts believe any meaningful proof of turnaround will take time to surface. #Starbucks #TurnaroundStrategy #EarningsReport #RetailChallenges #SlimScan #GrowthStocks #CANSLIM