Many investors and financial observers regard Starbucks (NASDAQ: SBUX) as one of the great American success stories of the last 50 years. In 1977, Howard Schultz opened the first Starbucks in Seattle. A few decades later, Starbucks had hundreds of locations nationwide and had become an essential "third place" where Americans of all stripes could commune. However, Starbucks has been struggling lately, and CEO Brian Niccol is responsible for fixing it.
The company is coming off four consecutive quarters with declining sales, and its Q2 fiscal 2025 earnings report was very underwhelming. Niccol had the unenviable task of informing shareholders that the company's net earnings were $384.2 million, a 50% decline from the previous year, on the April 29 earnings call. That ratchets the pressure up on him, even if forces beyond his control are contributing to the decline.
