Starbucks CEO's Dilemma Unfolds With Stock Performance, Falling Sales

Starbucks CEO Laxman Narasimhan is grappling with falling stock prices and declining sales just over a year into his tenure. The company's shares dropped by 18% following a disappointing quarterly report, marking its first sales decline since late 2020. Efforts to boost Starbucks' performance include enhancing service efficiency, introducing new products, and expanding food offerings.

The company has lowered its full-year revenue growth forecast and anticipates a slow recovery, which has led to skepticism among analysts regarding its turnaround strategy. Amidst challenges like inflation and changing consumer preferences, there are growing concerns about the effectiveness of Narasimhan's approach to revitalizing the brand.