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BUZZ-Starbucks rises as investors cheer new CEO Niccol's plans for coffee chain
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BUZZ-Starbucks rises as investors cheer CEO Niccol's plans for coffee chain

** Shares in Starbucks SBUX.O gain 4.2% to $97.34 in afternoon trading

** On Tuesday, CEO Brian Niccol laid out his plans for the coffee chain in an open letter after his first day at the helm

** Focus initially on improving service and coffeehouse culture at stores in the United States - Niccol

** Will spend time in stores, meeting suppliers and partners to improve SBUX's supply chain, app and mobile ordering platform - Niccol

** On SBUX's business in China, Niccol said " to understand potential path to capture growth"

** Believe Niccol is focused on the right drivers to improve traffic, and is acting with a sense of urgency. Niccol brings operational turnaround experience from his time at Chipotle Mexican Grill CMG.N - TD Cowen

** Interpret the comment (on business in China) as a commitment to exploring a ownership structure via a joint venture or refranchising - TD Cowen

** YTD, SBUX down 2.8% as of last close; stock has risen ~21% since Niccol was CEO last month in a surprise move


(Reporting by Juveria Tabassum in Bengaluru)

((Juveria.Tabassum@thomsonreuters.com;))

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
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