In the past few short weeks, Starbucks has made a miraculous turnaround with Howard Schultz at the helm. First, they added a small-cup program, axed breakfast, then added free WiFi, announced a company-wide retraining (although only a token 3 hours, it sends a good message to the market that things will be different) and now this little gem: Starbucks is experimenting with Clover brewers.
These are exactly the sorts of moves that the company needed; I predict that it is only a matter of time until we see the turnaround in numbers that Wall Street is waiting on. I am far from being a financial expert where Wall Street is concerned; however, it is my opinion as a coffee business specialist that these enhancements will work to improve both customer loyalty and ultimate profitability.
For what it’s worth, I have bought back in to the stock and look forward to seeing the financial impact of these improvements and others.