Starbucks Corporation (NASDAQ:SBUX) ranks among the top picks for a retirement portfolio. On September 26, Starbucks Corporation (NASDAQ:SBUX) retained its Buy rating at Stifel, with the firm reiterating its $105 price target as the coffee giant launched a major restructuring endeavor.
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Starbucks Corporation (NASDAQ:SBUX) announced a $1 billion restructuring plan that involves shop closures across North America, resulting in a projected 1% decrease in net unit growth for FY2025. As part of its attempts to improve operations and redirect resources toward its key goals, the company will reduce around 900 additional corporate positions, adding to the 1,100 positions it terminated in February.
According to Stifel, while the $600 million cash impact from restructuring fees ought to have little impact on lease-adjusted leverage, U.S. comparable sales will keep facing industry-wide pressures in the near term, despite optimism about Starbucks’ innovation pipeline, improved labor execution, and upcoming smart queue technology.
Starbucks Corporation (NASDAQ:SBUX) is an American multinational chain of coffee shops and roastery reserves with operations in more than 80 countries. It is well-known for its roasted whole beans and ground coffees, ready-to-drink beverages, and range of food products.
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Disclosure: None. This article is originally published at Insider Monkey.