Starbucks Corporation (NASDAQ-SBUX) has released its financial results for the third quarter of 2024. Total sales decreased 1% compared to the third quarter of last year and increased 6% to $9.1 billion compared to the second quarter of 2024. Operating income decreased 6.6% to $1.4 billion in Q3. Operating margin declined primarily due to investments in business partner salaries and benefits, increased investment in advertising campaigns and deleveraging. This decrease was partially offset by pricing efficiencies and operating efficiencies in Starbucks restaurant sales.
Former CEO Laxman Narasimhan , who was appointed to lead the company in April 2023, was ousted in August 2024 due to strong dissatisfaction from the board of directors and across Starbucks management and replaced by Brian Niccol , who will become the chain’s CEO as of September 9, 2024. According to sources available to Wikipedia, Niccol will receive an annual starting salary of $1.6 million and a $10 million signing bonus. Brian Niccole was the CEO of Chipotle, which upon his appointment to head the company on March 5, 2018, saw Chipotle Mexican Grill Inc. shares rise. CMG : NYSE surging a whopping 773%. Chipotle Mexican Grill Inc. owns and operates Chipotle Mexican Grill restaurants that offer a menu of burritos, burrito bowls (burritos without tortillas), quesadillas, tacos and salads. The company operates about 3,437 restaurants, including 3,371 Chipotle restaurants in the United States and 66 international Chipotle restaurants. Following the election of Brian Niccolem to lead Starbucks Corporation (NASDAQ-SBUX) on August 13, 2024, the stock (NASDAQ-SBUX) rose a record 25%, adding $21.4 billion to the company’s market capitalization. On the other hand, Chipotle stock fell 7.5% with a loss of $5.7 billion. Niccol is hailed by prominent analysts as the top public restaurant CEO in the US. Analyst Michael Halena of Bloomberg Intelligence said the hire is a “no-brainer.” Brian Bittner of Oppenheimer & Co. said Niccol is a “dream hire” for St.
Starbucks Corporation also pays regular quarterly dividends to its shareholders. Currently, the dividend yield is 2.47% per annum and the actual dividend amount has been approved by the company’s board of directors at $0.57 per share. According to analysts at brokerage firms and financial strategists at investment banks, the share price of (NASDAQ- SBUX) can be expected to rise in the short to medium term investment horizon. The average target price for the stock with a high estimate has been set at $100 per share.