Starbucks shares rise as turnaround efforts start showing results: what it means for coffee, restaurants and consumer spending

Starbucks shares moved higher after the company raised its annual forecast and showed signs that CEO Brian Niccol’s turnaround plan is gaining traction. The strategy is focused on simpler menus, faster service, more staffing, better store technology and stronger customer loyalty. Customer traffic also improved across income groups, while average visits per Starbucks location rose 5.9% during the January to March quarter. The one concern is margin pressure, with North American margins falling to 9.9% from 11.6% a year earlier because of higher labour investment.

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If Starbucks can drive higher traffic despite economic uncertainty,  ...