Starbucks, like many fast-food giants or chains, has had to go through some tough times, especially in the recent past. The company had a tumultuous year last year, when its former CEO Laxman Narasimhan was given a pink slip after an unusually short stint in the middle of 2024.
The Change Of Guard
The new CEO of the company, the former Chipotle boss, Brian Niccol took over the reigns of the American coffee giant on September 9, 2024.
While the company was still busy putting out some of its fires, the company under Niccol also looked to change its ways. The company emphasised a change in its approach.
The company changed its ever-complicated menu apart from making some other changes, including moving away from its facility, which made its spaces available for use, without consuming its products.
Starbucks at Wall Street
How have these changes impacted the company at the equity market?
The company shares have declined by 2.13 per cent in the past five trading sessions, the larger picture looks better than expected.
Amid the global uncertainties in trade, the shares of the coffee giant have only seen a steady rise. In the past 6 months for which Niccol has headed the company, the company shares have risen by over 20 per cent in total value.
The company shares have increased in value by a colossal 22.39 per cent or USD 20.50. This has brought the overall value of the company shares to USD 112.06 per piece, from its low of USD 91.56 per piece in September 2024.
Net Sales Remain Unchanged
The company's market cap has also increased from USD 103.29 billion to USD 127.29 billion, putting it on the 130th position in terms of companies and their market cap.
Recently, the company has tried to streamline its business, having fired 1,100 employees globally. In addition, the company also appointed the company also announced the appointment of Nordstrom’s Cathy Smith as the company's new CFO.
In January-end, the Seattle-based company reported fiscal first-quarter net income of USD 780.8 million, down from USD 1.02 billion a year earlier. The company's net sales, however, stood at USD 9.4 billion, unchanged from a year earlier.