Starbucks Corp. (NASDAQ: SBUX) is at the beginning of a high-stakes turnaround under new chief executive officer (CEO) Brian Niccol. However, while SBUX stock is up 11% since April and may offer long-term value if the turnaround takes root, financial and cultural headwinds may limit the stock gains in the short term.
Niccol acknowledged the time required for the company’s turnaround in its second quarter earnings report in April. At that time, Starbucks didn’t issue annual guidance. Niccol also remarked that earnings per share (EPS) “shouldn’t be used as a measure of our success.”
