Starbucks Is Unsinkable
I told you before that I strongly believe in Starbucks' ability to get out of whatever jam it was temporarily in. Today life proved they could keep the coffee dry enough to resurface at any moment.
This week is probably all about inflation data, with US CPI is scheduled for Wednesday, and retailers, starting with Home Depot's quarterly report on Tuesday (was not very bright, but not disappointing at least) and the major Walmart report on Thursday. However, Starbucks news was hosed ahead of the race with a sudden management miracle. It named now-the-former CEO of extremely successful Chipotle Mexican Grill as Starbucks' new CEO, effective since September 9. This important leadership change immediately pushed Starbucks share price more than 20% up, which may be too much for the particular moment, but looks promising for improving the coffee chain's sales in North America and China. Therefore, I personally feel that any price retracement to the levels below $90 could become a golden Buy opportunity. IMHO, even $85 is possible as a short-time episode, but sliding to $75 again would be nearly unbelievable.
Brian Niccol is credited with the splendid thriving of his company since he took the helm in 2018. He doubled Chipotle's revenue and provided its stock price ride to the moon, adding somewhat 700% or 800%, not only because people love burritos so much but also due to his focus on brand culture, menu innovation as well as digital transformation of Chipotle's service. I bet you at least a thousand bucks that Starbucks would become the same kind of riding-to-the-moon-and-stars company very soon, as Niccol is a the Manager to recover the brand's global influence. His leadership expanded from P&G and Taco Bell to Pizza Hut, and he also served on the board of directors for Walmart and even held positions on the boards of Harley-Davidson. For me, it's a kind of miracle-making coach, like Guus Hiddink was in football, so that he pushed even Australians, South Koreans and even slow Russians to play the game. Howard Schultz, the legendary Starbucks founder and chairman emeritus, also expressed his admiration for Niccol's "impact on retail excellence", particularly his ability to "lead a culture and values-driven enterprise."
Well, let's just hold and see. Hope, with a view to repeating July 2021 with its above $120 records, for the beginning.
Disclaimer:
The comments, insights, and reviews posted in this section are solely the opinions and perspectives of authors and do not represent the views or endorsements of RHC Investments or its administrators, except if explicitly indicated. RHC Investments provides a platform for users to share their thoughts on financial market news, investing strategies, and related topics. However, we do not guarantee the accuracy, completeness, or reliability of any user-generated content.
Investment Risks and Advice:
Please be aware that all investment decisions involve risks, and the information shared on metadoro.com should not be considered as financial advice. Always conduct thorough research, seek professional advice, and exercise caution when making investment decisions.
Moderation and Monitoring:
While we strive to maintain a respectful and informative environment, we cannot endorse or verify the accuracy of all user-generated content. We reserve the right to moderate, edit, or remove any comments or posts that violate our community guidelines, infringe on intellectual property rights, or contain harmful content.
Content Ownership:
By submitting content to metadoro.com, users grant RHC Investments a non-exclusive, royalty-free license to use, display, and distribute the content. Users are responsible for ensuring they have the necessary rights to share the content they post.
Community Guidelines:
To maintain a positive and respectful community, users are expected to adhere to the community guidelines of Metadoro. Any content that is misleading, offensive, or violates applicable laws and regulations will be subject to moderation or removal.
Changes to Disclaimer:
We reserve the right to update, modify, or amend this disclaimer at any time. Users are encouraged to review this disclaimer periodically to stay informed about any changes.