Stock Pulse
Starbucks is navigating a complex market landscape. While its stock price has declined significantly (over 30% since its February high) [1], [6], [7], [8], [9], [10], new CEO Laxman Narasimhan is implementing a turnaround plan focused on improving the in-cafe experience and operational efficiency [6]. The company launched a new line of plant-based energy drinks to expand its market reach [2] and maintains a strong cash position, supporting its consistent dividend payouts [1]. However, Starbucks faces challenges including a pre-tax loss in the UK market [5], slowing growth, rising costs, and potential impacts from tariffs and international tensions, particularly in China [5], [6], [9], [10]. Despite these headwinds, some analysts suggest the stock is undervalued and presents a buying opportunity [1], [3], [6], [10], with Jefferies upgrading the stock to Hold from Underperform due to the recent price drop limiting further downside [7], [8], [9].