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News in English (USA) / 30.04.2025 / 09:00

Starbucks Stock Experiences Decline Amid Mixed Earnings Results and Turnaround Challenges

Starbucks has reported a disappointing drop in sales and earnings, raising concerns on Wall Street over the effectiveness of its turnaround strategy led by CEO Brian Niccol. Despite claims that the turnaround plans show signs of momentum, the company’s quarterly results fell short of expectations, prompting a 7% fall in stock prices. Amid mounting costs associated with the turnaround efforts, Starbucks is shifting its focus towards increasing staff levels in stores, opting for more baristas over technology integration. Investors remain skeptical, as recent earnings reflect a bigger-than-expected drop in global sales, particularly due to weak demand in the U.S. The company maintains its commitment to innovation and operational enhancements, though analysts suggest that the turnaround may require at least six months to a year to yield significant results.
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