Starbucks’ Slow-Motion Turnaround Faces Market Skepticism
Starbucks' recovery narrative struggles to justify its premium valuation as growth stagnates. The coffee giant's shares have dipped 5.5% this year, reflecting investor unease about paying top dollar for inconsistent performance. While management's back-to-basics strategy shows early promise, execution risks loom large.
Comparable sales volatility and margin pressures continue to plague the chain. The post-pandemic rebound has given way to stagnation, with 2024 proving particularly challenging. Analysts remain cautious—the current multiple demands flawless execution of the turnaround plan, yet clear signs of sustained momentum remain elusive.