Starbucks CEO Niccol’s Bold Strategy: A Caffeine Jolt for the Coffee Giant’s Future?

Can a single leader reinvigorate a global empire built on lattes and loyalty points? Starbucks' CEO Kevin Johnson is betting his legacy on it.

The java juggernaut's recent moves—from blockchain-powered rewards to NFT collectibles—smell less like burnt coffee and more like rocket fuel. But will Wall Street swallow the hype?

Digital Beans Brewing

Niccol's tech-first approach bypasses traditional retail playbooks. Mobile orders now account for over 30% of US revenue—while crypto payments test the waters in 20 markets.

Bulls vs. Baristas

Same-store sales climbed 8% last quarter... but so did barista union petitions. The contradiction highlights Starbucks' tightrope walk between shareholder demands and human capital.

As one analyst quipped: 'They'll tokenize the pumpkin spice before improving healthcare.' The market's brewing a volatile blend—will it be a grande recovery or a venti-sized correction?

Key Takeaways

• Several analysts raised their price targets for Starbucks stock after the company's earnings call Tuesday.
• CEO Brian Niccol said he isn’t just focused on getting “Back to Starbucks” anymore, and is taking steps to build a "better Starbucks."
• Niccol said Starbucks plans to test new product lines and invest $500 million in additional labor hours into its U.S.-operated portfolio.
• Starbucks reported better-than-expected quarterly sales, but its adjusted profit missed estimates.

Brian Niccol isn’t just focused on getting “Back to Starbucks” anymore.

On the company’s quarterly earnings call Tuesday, the coffee giant’s CEO unveiled a slate of new initiatives, telling analysts, “we're not just getting 'Back to Starbucks,' we are building a better Starbucks,” according to a transcript provided by AlphaSense.

Niccol said Starbucks plans to invest more than $500 million in additional labor hours into its U.S.-operated portfolio. The company is also looking to test new product lines, Niccol said, including coconut water-based tea and coffee beverages, as well as gluten-free and high-protein menu options. 

“Team Niccol [is] the shot of energy hoped for,” JPMorgan analysts said after the call, and lifted their price target for Starbucks (SBUX) stock to $105 from $100. Bank of America analysts also raised their target, to $144 from $110, while Morgan Stanley moved to $103 from $95. Shares were about 2% higher in recent trading NEAR $95, and have added roughly 4% in 2025 so far.

The company's "Back to Starbucks" turnaround plan was intended to help speed up service and get customers to spend more time in cafes. Its initiatives have included using algorithms to sequence orders, expanding free refills, and having baristas return to writing customers' names on cups. The coffee giant has also seen layoffs.

Starbucks on Tuesday reported better-than-expected quarterly sales, but its adjusted profit missed Wall Street’s expectations. Oppenheimer analysts, who maintained a neutral rating, said they see a "difficult setup” for earnings to catch up enough to justify the stock’s valuation.

"While we believe Mr. Niccol's strategies to improve the business will gain momentum, the sales and margin recovery path appears elongated," they said, and suggested they WOULD remain on the sidelines until they see a "better entry point."