Starbucks is anticipated to see a significant turnaround in 2025, fueled by fresh strategies under the leadership of new CEO Brian Niccol. Yahoo Finance reports that Niccol has introduced initiatives focusing on faster service times, simpler pricing, and improved store operations, aimed at re-establishing Starbucks shares as a formidable player in the market.
According to Peter Saleh, a BTIG restaurant analyst, these focused strategies are expected to set the stage for impressive same-store sales and earnings growth as we advance into 2026, potentially catalyzing Starbucks’ shares. Saleh has highlighted Starbucks as one of his top stocks for the first half of 2025, indicating a projected 30% price increase from current levels, with a price target of $115.
Although the year 2025 is marked as a transition and investment phase for Starbucks, it is expected to be pivotal in crafting a sustainable turnaround. The IndexBox platform data supports this trajectory by showing key market trends that indicate a recovery in key coffee markets, especially in North America, aligning with Starbucks’ strategy to boost foot traffic and stimulate same-store growth.
Starbucks’ 2024 results reflect the challenges faced, with a 7% decline in global comparable-store sales and operational hurdles such as longer wait times and increasing coffee prices impacting consumer preferences significantly. While setbacks in the international arena, notably a 14% drop in Chinese sales, further underscore the tough road ahead, Niccol remains optimistic about reversing these trends, telling Yahoo Finance about his focus on driving US business growth. Despite these immediate challenges, market analysts and investors are keenly watching Starbucks’ progress under Niccol’s guidance, anticipating a fruitful return to form and market leadership by leveraging its operational enhancements.