Starbucks sales have been on a relentless downward slump. This resulted in former CEO Laxman Narasimhan’s replacement after only 17 months.
Its stock fell nearly 4% on Oct. 23rd, after suspending its guidance and declining sales in Q3.
Falling sales, union clashes, and activist investors defined his short tenure.
Former Chipotle CEO Brian Niccol took over in September of this year with an aggressive plan to get back on track.
Niccol’s plan includes simplifying the coffee chain’s complex menu, addressing staff shortages and limited store amenities.
He claims that he will implement more support for baristas who, on a wide scale, are outraged about low pay and poor benefits (Reuters).
Despite its struggles, Starbucks’ future still holds promise.
The stock dropped to 3.9% to $93.09, keeping shares in the range its traded in since Niccol was hired as CEO.
If anything, the stock is still 21% higher since his introduction to the company (MSN).
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