Starbucks' (NASDAQ: SBUX) stock price did not respond favorably to the Q2 results and outlook despite Brian Niccol's impact on the company. Surely, the weakness in results, specifically earnings, is a concern, but it is tied entirely to investment in the turnaround. Labelled 'Back to Starbucks,' Niccol is focusing on atmosphere, throughput, and customer satisfaction, which ultimately means hiring more staff and improving digital use.
While there is cause for concern in the near term, the long-term result will likely resemble Niccol’s impact on Chipotle Mexican Grill, as shown in his previous posting.
