Starbucks turnaround will take time. This options strategy works if shares remain range-bound
Starbucks has taken steps to stabilize its business, but shares could trade in a tight range over the next several months.
TL;DR
- China's growth was flat to slightly negative in real terms, with same-store sales falling 1% in fiscal 2025.
- Starbucks sold a 60% stake in its China operations to Boyu Capital for $4 billion.
- North America saw a 1% decline in same-store sales and a 4% drop in foot traffic in fiscal 2025.
- Rising coffee costs are pressuring margins, contributing to pricing issues.
- Starbucks closed 113 underperforming stores in North America during fiscal 2025, with 77 net closures in the U.S.
- Earnings estimates for the first and second quarters have been significantly reduced.