It was a difficult year for Starbucks Nasdak: smux. The King of Coffee Roard for sale witnessed a slide of more than 25 % from the year to date (YTD) on February 23, and when it was reported about the third quarter profits on July 29, analysts estimated at approximately 28 %.
Starbucks today
As of 10/3/2025 04:00 pm
- 52 weeks
- 75.50 dollars
▼
117.46 dollars
- Profit
- 2.82 %
- P/E ratio.
- 37.25
- The target price
- 104.00 dollars
While some of this may reflect periodic consumer behavior amid high coffee prices all the time-as a global commodity and a Starbucks also from the weak optics. Multi-year protests protested by supporters of trade union in addition to the boycott campaign that was established in the Israel-Gaza conflict in 2025, which greatly affected the company’s sales.
Last week, the coffee chain announced plans to close stores and make another round of workers’ demobilization. But with Starbucks for the first time a new strategic plan to support sales, there are basic issues that may not be answered. Meanwhile, one of the competitors is preparing the waves and provides an alternative to investors looking to harness the budget capabilities of the company that was one year in 2021 and is now the fastest series of coffee for retail.
Starbucks struggles are not isolated from the last quarter
Despite the small increase in the Q3 revenue, Starbucks has seen similar store sales in addition to a significant decrease in transactions during the second and third quarter of its financial year. In response, the Chairman and CEO, Brian Nicole, announced in late September a “restructuring plan” described as “”Back to Starbucks”
As part of that new strategy, which requires a billion dollar restructuring, 900 unequal employees will be lay off. This is the second round of workers’ demobilization with Niccol at a head, after 1100 workers that are left early in 2025. Other prominent features of the “return to Starbucks” plan include the return of the cargo bar, the marketing shift away from highlighting the discounts, and the efforts made to increase the transparency of pricing-for example, by removing unacceptable charges.
However, welcome to these measures, it does not seem that restoring spices is the solution to more systematic problems facing the company. In April, a lawsuit against Starbucks was filed by the Brazilian workers who claimed forced labor in the company’s coffee supply chain. One month later, hundreds of Parista across the United States organized wandering operations to protest a new clothing law policy, and in September, the union, whose qualified workers, claimed that 59 of the sites that Starbucks decided to close were union stores.
The restructuring plan will also come at a large cost. According to Form 8-k STARBUCKS with SEC, the company is expected to have to obtain $ 150 million of employee dismissal costs (for example, service salaries, unemployment taxes and administrative tasks such as exit interviews and salary updates) and another $ 850 million in payments related to the closure of stores (such as, the collapse of store closing operations before the end of contractual terms).
While the company is still a decent option for income investors – the profit distributions that currently give 2.81 %, or $ 2.44 per share annually – the 105.17 % profit distribution rate is an apparently and unnecessary red mark.
One competitor is subject to rapid expansion
Although the effects of the strategic plan “Return to Starbucks” will not be achieved for some time, it is a clear indication – it was introduced by reducing the size of its location and employment lesions – that the company is not in growth mode.
But for investors who are contacted in America’s indifferent appetite for coffee, this is not bad news. Other retailers working in the capable sector of the consumer provide better capabilities, stronger profits, and better growth prospects.
Bruce Dutch today
- 52 weeks
- 30.49 dollars
▼
86.88 dollars
- P/E ratio.
- 107.49
- The target price
- 79.88 dollars
Bruce Dutch New York: Bruce It continues to outperform Starbucks in estimating stocks, profits and revenue growth. The company, which became public in September 2021, prefers between Wall Street, with an institutional property of about 86 % compared to 72 % of Starbucks.
In the last quarter, Dutchman Bruce won 44.44 % profits, while its quarterly revenues witnessed 28 % on an annual basis. The company is expected to grow its profits by 38.60 % next year. Analysts agree that the Dutch performance of Bruce over the next year will outperform the performance of Starbucks, with the 12 -month price goal of $ 79.88, representing approximately 52 % of the biological capabilities of today’s share price.
Since the stock rose in the aftermath of the Q2 profit call in August, BROS has regained approximately 30 %. But it seems that it has found higher support than the YTD Low group on April 4. With the reading of the current relative strength index (RSI) of 29.97, the arrow is considered excessive, which can predict the start of a dramatic prices in the short term. The last time that the relative power indicators of Dutch Bros’ RSI were in the sale area on July 24, preceded a 27 % profit until August 28.
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