Starbucks Brews A Turnaround, But Investors Want A Stronger Roast: CEO Says 'The Stock Will...'

Benzinga

Starbucks CEO Brian Niccol’s “Back to Starbucks” plan includes layoffs, store cuts, and service upgrades as part of a major turnaround. Shares are down 9% since his arrival, with China operations still struggling ahead of Q4 earnings.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Starbucks CEO Brian Nichol is working to revive the coffee giant through his Back to Starbucks

00:07initiative, which has included layoffs, store closures, and new customer experience policies,

00:11according to Benzinga. Nichol, who took over last September, told CNBC's Mad Money that the

00:16company is ahead of schedule on its turnaround, setting the success of its Green Apron service

00:20and new protein add-ons. Starbucks' China division valued at about $10 billion with

00:25potential partners Carlyle and Boyu Capital, who talks for a majority stake, continues to struggle

00:30amid fierce competition from Luck and Coffee. Since taking over as CEO, Nichol has seen

00:35Starbucks shares drop 9%. Semesters wait to see if he can replicate the success he achieved

00:40at Chipotle. Starbucks is set to report fiscal fourth quarter earnings on October 29th. The

00:45analysts expect an EPS of 57 cents on $9.37 billion in revenue.

00:50For all things money, visit Benzinga.com.

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