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Keeping Morale Up During a Turnaround

Keeping Morale Up During a Turnaround

The HBR Executive Playbook on steering teams through disruption with empathy, recognition, and renewed energy. by
Rose Wong
When leading a turnaround, you're tasked with charting a path forward for an organization in serious decline. It's a high-stakes moment that requires a hard look at what's no longer working, and a willingness to make difficult choices.
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Starbucks Stock: Store Sales Slump, but Is a Turnaround Near?
Starbucks Stock: Store Sales Slump, but Is a Turnaround Near?

Yahoo

time2 hours ago

  • Yahoo

Starbucks Stock: Store Sales Slump, but Is a Turnaround Near?

Key Points Starbucks again saw a same-store sales decline in the latest period. Nonetheless, the company is seeing early progress in its turnaround. However, costs associated with the turnaround are also adding up. These 10 stocks could mint the next wave of millionaires › Starbucks (NASDAQ: SBUX) reported its fiscal third-quarter results, and global same-store sales slumped once again. It was the sixth straight quarter the company has seen its comparable-store sales decline. However, it's taking action to try to boost sales. This includes implementing a Green Apron Service model, which aims to create consistent, repeatable standards across its coffee shops. Starbucks said stores that have implemented the model have already had improvements in transactions, sales, and customer service times. It plans to roll out the model to all U.S. company-owned stores in mid-August. It's also begun to remodel stores, and to upgrade its mobile app and mobile ordering system to help improve the customer experience. It will also introduce protein cold foam add-ons for drinks, coconut-water-based beverages, and new baked goods, all to entice customers to spend more at its stores. However, this is all coming at a big cost. Starbucks is spending around $150,000 per store on its remodeling program. The bigger cost, though, is its investment in additional labor, which it said will add $500 million in annual costs over the next year. High labor costs have already been taking a bite out of operating margins and profits. In Q2, adjusted operating margins contracted by 660 basis points to 10.1%, as store operating expenses climbed 13.5% year over year, and accounted for 45.9% of sales compared to 42% a year ago. This was necessary to help fix Starbucks' problems, but could also change its profitability profile. The company said it's working on reducing costs throughout its business to help offset the additional labor costs. CEO Brian Niccol said that he didn't think the company was over-earning previously, and that 2019 serves as a good road map to where operating margins can return. However, he eventually wants to exceed pre-pandemic operating margins. Same-store sales remain negative Starbucks' global same-store sales fell 2%. Global traffic dropped 2%, while there was a 1% increase in the average ticket. In North America, comparable-store sales also fell 2%, with traffic down 3%. International same-store sales were flat, with traffic increasing 1% and the change in average ticket down 1%. Starbucks' second-largest market, China, saw same-store sales rise 2%, with a 4% decline in average ticket and a 6% increase in traffic. The company is currently looking for a strategic partner to team up with for its China business, although it said it wants to keep a meaningful stake and that it will only make a deal if one makes sense. Overall sales climbed 4% to $9.5 billion, as it continues to add new stores, but adjusted earnings per share (EPS) plunged 46% to $0.50. The revenue number was ahead of analysts' estimates of $8.82 billion, as compiled by LSEG, but EPS missed the $0.65 consensus. Is Starbucks a buy? Niccol made the tough but necessary move to hire more baristas and improve the guest experience at Starbucks. While there hasn't been a huge uplift in same-store sales yet, there are early signs that things are improving. That said, the cost to make these changes is evident and has greatly compressed operating margins and sunk profitability. Increased same-store sales should help improve operating leverage by spreading the cost over a larger revenue base, but the company also plans to continue adding a lot of labor costs. Whether it can restore its operating margins will go a long way in determining where the stock will head in the next few years. From a valuation standpoint, Starbucks is not cheap, trading at a forward price-to-earnings (P/E) ratio of about 32 based on analysts' estimates for fiscal 2026 (which ends in September 2026). I do think a turnaround is in the works and progressing. But given the cost of the turnaround and the stock's valuation, I'd prefer to remain on the sidelines for now. Should you buy stock in Starbucks right now? The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy. Starbucks Stock: Store Sales Slump, but Is a Turnaround Near? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

First Tee, PGA TOUR Superstore host 40 teens for Montana Leadership Summit
First Tee, PGA TOUR Superstore host 40 teens for Montana Leadership Summit

Forbes

time4 hours ago

  • Forbes

First Tee, PGA TOUR Superstore host 40 teens for Montana Leadership Summit

National youth development organization First Tee is proud to host the 2025 First Tee Leadership Summit in partnership with PGA TOUR Superstore, taking place over the next two weeks at West Creek Ranch in Montana. Teens will spend an impactful week in the Paradise Valley, where they'll experience leadership development, outdoor adventure and personal growth. Actor Michael Pena and Olympic medalist Kellie Wells-Brinkley will be guest speakers for Week 1 and Week 2 respectively. Leadership Summit is designed to equip participants with the tools and mindset to lead with character, overcome challenges and make a meaningful influence in their schools and communities. The immersive program encourages participants to step outside of their comfort zone and experience activities like horseback riding, whitewater rafting, ropes courses and archery. Throughout the week, leadership development experts and PGA TOUR Superstore staff lead reflective sessions to help participants identify their leadership strengths and values. First Tee and PGA TOUR Superstore have a long and impactful history. This is the fifth year they'll team up to host Leadership Summit at West Creek, a working ranch owned by PGA TOUR Superstore chairman and owner and First Tee board member Arthur M. Blank that borders the Yellowstone River and Gallatin National Forest. During the event, PGA TOUR Superstore staff will facilitate sessions on topics like communication and growing through challenges.'The Leadership Summit is one of the most memorable and meaningful experiences these teens will have at this stage in their lives. They learn about themselves, working with others, face challenges and build lifelong friendships,' said Ralph Stokes, Vice President of Social Impact, Partnerships and Community Relations, PGA TOUR Superstore. 'At PGA TOUR Superstore, we are committed to investing in programs like this that empower young people to grow – as individuals, as leaders and as engaged members of their communities.' 'At First Tee, golf is just the beginning of what we do,' said Greg McLaughlin, First Tee CEO. 'During Leadership Summit, teens will explore who they are as individuals, who they want to become and how they can lead with purpose. It is one of our most impactful opportunities, and we are grateful to PGA TOUR Superstore and the Arthur M. Blank Family Foundation for making it possible.'All participants must complete a leadership training course hosted by their local PGA TOUR Superstore before applying to Leadership Summit. This year's group was selected from a competitive pool of applicants and represents 21 First Tee Chapters from across the Tee offers a full slate of participant opportunities, including Leadership Summit, to further its mission of building game changers through golf. For more information, visit

W. R. Berkley Corporation Names Wayne Ashley President of Berkley Re UK Limited
W. R. Berkley Corporation Names Wayne Ashley President of Berkley Re UK Limited

Yahoo

time4 hours ago

  • Yahoo

W. R. Berkley Corporation Names Wayne Ashley President of Berkley Re UK Limited

GREENWICH, Conn., August 04, 2025--(BUSINESS WIRE)--W. R. Berkley Corporation (NYSE: WRB) today announced the appointment of Wayne Ashley as president of Berkley Re UK Limited effective October 2025. Clare Himmer will continue as Berkley Re UK's chief executive officer with the expectation that Mr. Ashley will succeed her as CEO upon her retirement at the end of 2025. W. Robert Berkley, Jr., president and chief executive officer of W. R. Berkley Corporation, commented on the appointment, "Clare's leadership at Berkley Re UK has been instrumental in continuing to build a strong presence across the U.K. and European reinsurance markets. Her contributions have left a lasting positive impact, and we are deeply appreciative of all she has achieved on behalf of the Company. We're pleased that Clare will remain an integral part of our organization through the transition—her insight, experience, and guidance continue to be a tremendous asset to the entire group. We are excited to welcome Wayne to the BRUK team. With a strong background and proven industry track record, Wayne is well-positioned to play a pivotal role in propelling the company forward. His addition marks an exciting chapter in our ongoing growth, and we warmly welcome him to Berkley." Mr. Ashley has over 30 years of experience in the international reinsurance market. He most recently led the London division of a leading multi-line global reinsurer, where he was responsible for the overall management and development of international property and casualty reinsurance business outside of North America and Bermuda. Clare Himmer, who joined Berkley Re UK in 2021, has had a successful 33-year career in the property and casualty reinsurance industry. She will continue to lead the organization through the transition and will remain a valuable resource for both the Berkley Re UK team and W. R. Berkley Corporation. For further info about products and services available from Berkley Re UK Limited, visit Founded in 1967, W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates worldwide in two segments of the property casualty insurance business: Insurance and Reinsurance & Monoline Excess. For further information about W. R. Berkley Corporation, please visit View source version on Contacts Karen A. HorvathVice President - External Financial Communications(203) 629-3000

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