Analyst Says Starbucks (SBUX) is Taking ‘Necessary Actions’ for Turnaround

We recently published 10 Stocks to Watch Ahead of Q3 Earnings Season. Starbucks Corp (NASDAQ:SBUX) is one of the stocks that Wall Street analysts are discussing these days.

Andrew Charles of TD Cowen, in a recent program on CNBC, commented on Starbucks’ (NASDAQ:SBUX) latest $1 billion restructuring plan. The analyst believes the company is taking the “necessary steps” and its turnaround is “ongoing.” He has a Neutral rating on the stock.

“You know, I think it didn’t really change anybody’s mind. If you were bullish going into this, they had hinted at this before and this just puts more numbers around the number of store closures as well as some of the restructuring charges as well. If you’re bearish, you’re looking at saying, hey, this is a little bit more more of a larger magnitude than we expected, ourselves included. You know, we’re seeing that 900 jobs unfortunately lost around 500 store closures in the United States. You know, this turnaround obviously is these are necessary actions to take, but the turnaround obviously is ongoing.”

Analyst Says Starbucks (SBUX) is Taking ‘Necessary Actions’ for Turnaround

Polen Global Growth Strategy stated the following regarding Starbucks Corporation (NASDAQ:SBUX) in its second quarter 2025 investor letter:

“We have reestablished our position in Starbucks Corporation (NASDAQ:SBUX), now under the leadership of newly appointed CEO Brian Niccol, formerly of Chipotle. Niccol has articulated a clear, multi-pronged turnaround plan that we view as both practical and achievable. We believe Starbucks’ store operations became overly complex, resulting in over-tasked baristas and a poor customer experience. Having successfully revitalized Chipotle, we view Niccol as the right leader for Starbucks. He has already identified fixes for in-store operations, marketing, and customer service that we believe can potentially result in meaningful impact in the not-too-distant future, provided they are effectively scaled across 17,000 U.S. stores. We believe Starbucks retains an aspirational brand and a loyal customer base. As such, we see solid growth ahead through store productivity, new-store growth, and significant margin expansion. After a few years of mismanagement and a languishing stock, we expect considerable upside for this iconic brand.”

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Disclosure: None. This article is originally published at Insider Monkey.