• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Former Starbucks CEO says company needs to revamp its stores after big earnings miss
Editor's Pick

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

by May 7, 2024
by May 7, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

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
You Might Also Like
  • U.S. added 818,000 fewer jobs than thought, adding to concerns about a slowing economy
  • Biden preparing to block U.S. Steel sale to Japanese company
  • ‘Moana 2’ tops $1 billion, extending Disney’s box office domination
  • Credit cards are charging more ‘excess’ interest than ever, consumer watchdog says
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Russia threatens strikes on British military installations, plans nuclear drills after Cameron’s remarks
next post
Why Novo Nordisk’s Stock Price Recovery Makes It a Promising Buy

You may also like

More than $1 billion in federal tax refunds unclaimed as...

April 2, 2024

Savings simulator: Is your money beating inflation?

October 9, 2023

Comcast and Harris Blitzer to build NBA, NHL stadium in...

January 14, 2025

The economy is doing better than expected. Your 401(k) probably...

January 26, 2024

Jerome Powell indicates Fed won’t wait until inflation is down...

July 17, 2024

Delta Airlines cancellations and delays continue but worst of IT...

July 24, 2024

Vanguard fined more than $100 million by SEC over violations...

January 17, 2025

‘Moana 2’ tops $1 billion, extending Disney’s box office domination

January 22, 2025

Are fears of a shoplifting surge running away from the...

November 13, 2023

Quectel Announces Ultra-Compact LTE Cat.1 bis Module to Address Mid-Range...

January 4, 2023

    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.

    Recent Posts

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025
    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,631 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,577 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,451 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters...

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Disclaimer: RoundTableThoughts.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 © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Thousands of schools are turning to...

    November 8, 2023

    Trump-branded wireless service launches — with...

    June 17, 2025

    Telit Cinterion Adds New Dual-Band GNSS...

    March 15, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here