Starbucks Turnaround is Here

Starbucks is expected to unveil a reinvention plan Tuesday as the coffee giant grapples with changing consumer behavior, outdated store designs and a union push in the U.S.

The strategy is the brainchild of outgoing interim CEO Howard Schultz, who returned to the top job in the spring after Kevin Johnson’s retirement. Schultz will cede the reins to incoming CEO Laxman Narasimhan in April but will stick around to help implement the plan.

Starbucks said Tuesday’s investor day in Seattle will feature presentations and a question-and-answer session with leadership, but it is unclear if Narasimhan will speak with investors for the first time.

Schultz’s new strategy is meant to address how the coffee chain plans to drive growth in a post-pandemic world. Shares of the company are off 24% year to date, dragging its market value down to $102 billion. A slow recovery in China, the union push in the United States and broader economic uncertainty have weighed on the stock, but Wall Street’s approval for the reinvention plan could reinvigorate shares.

Source: CNBC