Starbucks (SBUX) China has made a significant leadership move, appointing its first-ever Chief Growth Officer (CGO), Tony Yang, according to a Reuters report citing the Chinese media outlet Late Post. Yang was previously a partner and president at the digital marketing firm Tezign. His appointment follows a series of leadership changes to improve the coffeehouse chain’s performance in one of its most crucial markets.
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SBUX Is Facing Rising Competition in China
In September, Starbucks China announced that Molly Liu would step in as the sole CEO, with Belinda Wong transitioning to the role of chairwoman. This leadership reshuffling comes amid intensifying competition in China, where local, budget-friendly coffee chains like Luckin Coffee and Manner have eroded Starbucks’ market share.
Notably, in FY24, Starbucks China reported a 14% decline in comparable store sales, driven by an 8% drop in average prices and a 6% decrease in same-store transactions.
China remains Starbucks’ second-largest market after the United States, with 7,596 stores nationwide as of September.
Is Starbucks a Buy or Sell?
Analysts remain cautiously optimistic about SBUX stock, with a Moderate Buy consensus rating based on 14 Buys, six Holds, and four Sells. Year-to-date, SBUX has increased by more than 5%, and the average SBUX price target of $103.52 implies an upside potential of 4.2% from current levels.
