Starbucks pre-released quarterly results and suspended guidance for fiscal year 2025. As Max readers may recall from last week’s portfolio earnings preview, this is what I said about Starbucks heading into the season:
“This is the very first quarter for new Starbucks CEO Brian Niccol. There is no scenario where his leadership impacts this quarter’s (and next quarter’s) results. He took over with 3 weeks left in the period. I don’t think the results are going to be good and I don’t think anyone is going to care. It’s all about what this highly regarded CEO can do going forward. It’s very possible that, like Nike, this stock and multiple got too excited by the news and it cools off following the report. I’m actually hoping for that; I did not get to build out as large of a position as I wanted to before Niccol took over and the multiple snapped back higher. I’m rooting for Niccol to make this the kitchen sink quarter and bake in all of the bad news to lower the bar for his future success. I want these results to disappoint.”
Starbucks section of my article from last week’s Max article
And? The data in this release was certainly bad as expected: