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Starbucks (SBUX) exceeded first quarter revenue expectations, reporting $9.40 billion against analysts' estimates of $9.31 billion.
BTIG managing director and restaurant analyst Peter Saleh joins Julie Hyman and Josh Lipton on Market Domination Overtime to discuss the company's results and growth trajectory.
"Starbucks is a top pick for us this year. We think you're going to start to see some of these results in the back half of fiscal '25," Saleh says.
With new CEO Brian Niccol having taken the helm only in September 2024, Saleh acknowledges that change will be "slow," describing it as the "very early innings of this turnaround story."
Since Niccol's arrival, Starbucks has prioritized throughput and faster service. Additionally, Saleh highlights the company's unprecedented move into television advertising during sporting events — a strategy he expects to be a "sales driver" in the latter half of 2025.
While Saleh acknowledges that fundamentals need improvement, he suggests investors are more focused on other aspects of the company. "We want to hear about what the progress is" regarding efficiency, pricing, and future advertising strategy plans, Saleh explains.
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This post was written by Angel Smith