Starbucks ( (SBUX) ) has fallen by -7.74%. Read on to learn why.
Starbucks has experienced a notable decline in its stock price, dropping by 7.74% over the past week. This downturn comes amid significant internal changes, including the announcement of widespread layoffs and a leadership shake-up. CEO Brian Niccol addressed employees with a ‘tough-love’ message, emphasizing the need for accountability and improved decision-making as part of a broader turnaround strategy.
The company also announced the appointment of Cathy R. Smith as the new Chief Financial Officer, succeeding Rachel Ruggeri. Smith brings extensive experience from her previous roles at Nordstrom, Target, and Walmart International, and is expected to play a crucial role in Starbucks’ strategic initiatives. However, the market’s reaction to these changes has been cautious, with analysts expressing concerns over margin pressures and potential overvaluation.
Additionally, Piper Sandler’s recent update on Oatly Group, which includes a forecasted headwind from lost Starbucks distribution, has contributed to the negative sentiment. As Starbucks navigates these challenges, investors are closely watching how the company’s new leadership will steer its future growth and performance.