Starbucks (SBUX) continues to struggle... Regular readers may recall my June 9 essay about the coffee giant. In it, I mentioned that frustrated Starbucks customers were looking elsewhere for their caffeine fix.

One Man Could Save This Struggling Coffee Chain By Ethan Goldman, junior analyst, Chaikin Analytics Starbucks (SBUX) continues to struggle... Regular readers may recall my June 9 essay about the coffee giant. In it, I mentioned that frustrated Starbucks customers were looking elsewhere for their caffeine fix. Starbucks' stock has continued to fall in recent months. It's down about 6% since June 9. You might have heard about the company's new plans to close stores, too... Last week, Starbucks announced its plans to close about 1% of its company-owned stores in North America. It also plans to reduce non-retail headcount by about 900 people. Starbucks estimates that these changes will cost the company about $1 billion. They align with the company's "Back to Starbucks" strategy to revitalize the brand. But there's one person behind this change that I'd like to discuss... When news broke that he would be joining Starbucks, the stock surged by roughly 25% in one day. And the last company he led grew its stock price by more than 900% from when his tenure was announced to when his departure was announced. Let's take a look... Recommended Links: New October 3 Warning Fifty-year Wall Street legend Marc Chaikin called the 2020 crash and 2022 bear market. Now he says what's happening before Friday, October 3 could decide your next DECADE of investment performance. It has to do with the start of the fourth quarter... and the abrupt and surprising market shift he sees coming over the next 90 days. Here's why today could be the most important day for your money in all of 2025. Until Midnight Tonight: 'Why I'm Tripling Down on This Red-Hot Stock' Left for dead by Wall Street, this firm could be on the verge of a game-changing shift. UBS projects that it could add $15 billion to this company's annual sales. Bloomberg reports: "The payoff could be huge." And according to MarketWise CEO Dr. David Eifrig, you could double your money within two years if all goes according to plan. Until midnight tonight, get its name and ticker symbol here. The Hype Around Brian Niccol Isn't Without Reason On August 13, 2024, Starbucks announced that Brian Niccol would be joining the company as its new CEO. The market clearly liked the announcement. As I said earlier, Starbucks' stock soared by about 25% that day. The Power Gauge had given Starbucks a "bearish" or worse rating for the entire six months prior to the announcement. It was clear that Starbucks needed a shake-up. And Niccol has a history of shaking things up... In 2005, he entered the restaurant industry by joining Yum Brands (YUM) as a vice president. Two years later, he became the chief marketing officer for the company's Pizza Hut brand. There, he oversaw Pizza Hut's rollout of a mobile app. Pizza Hut was the first pizza company to create and take orders from an app. In the first two weeks after the launch, the app boasted more than 100,000 downloads. Niccol then went on to become chief marketing and innovation officer for Yum Brands' Taco Bell chain in 2011. Under his lead, Taco Bell turned from a 2% sales decline in 2011 to an 8% gain in 2012. And before Niccol took control of Starbucks, he served as CEO of burrito chain Chipotle Mexican Grill (CMG)... Chipotle announced the change on February 13, 2018. The next day, the company's stock jumped by more than 15%. On August 13, 2024, Chipotle announced that Niccol would be leaving the company to go to Starbucks. From the day Chipotle announced that Niccol would be joining the company to the day it announced his departure, CMG shares soared an incredible 927%. In the chart below, you can see the move higher... Folks, it's safe to say that Niccol earned himself quite a reputation. He's known for reinventing fast-food brands in exciting ways. But this doesn't mean that success is right around the corner for Starbucks... The Power Gauge Is Still Flashing a Warning on Starbucks It's true that Starbucks is in rough shape. The stock is roughly flat over the past five years. Over the same time frame, the S&P 500 Index has gained about 100%. Put simply, that's terrible underperformance. And to be clear, Starbucks gets a "very bearish" rating from the Power Gauge right now – like it did back in June. But I don't think that it's the end of the line for Starbucks... Keep in mind that since the day before Starbucks announced Niccol would be taking the helm, the company's stock is still up about 11%. Niccol has a strong history of reinventing companies in times of need. So investors should take his "Back to Starbucks" plan seriously. Of course, it will take some time for the effects of this plan to show... For now, the Power Gauge says it's too early to bet on a turnaround. Our system is still saying to avoid the stock. But looking ahead, I'll be keeping an eye on Starbucks for signs of a turnaround in the Power Gauge. Good investing, Ethan Goldman Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 +0.16% 7 16 7 S&P 500 +0.28% 144 248 108 Nasdaq +0.46% 30 55 15 Small Caps +0.12% 573 1025 316 Bonds +0.82% — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are somewhat Bullish. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Energy +3.0% Utilities +2.18% Real Estate +0.7% Financial +0.24% Consumer Discretionary +0.24% Consumer Staples +0.19% Industrials +0.03% Communication -0.03% Health Care -0.53% Information Technology -0.82% Materials -1.32% *  *  *  * Industry Focus Telecom Services 16 17 4 Over the past 6 months, the Telecom subsector (XTL) has outperformed the S&P 500 by +20.55%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #11 of 21 subsectors and has moved up 1 slot over the past week. Top Stocks COMM CommScope Holding Co BAND Bandwidth Inc. ANET Arista Networks Inc *  *  *  * Top Movers Gainers WDC +9.23% COIN +6.85% STX +5.35% CSX +5.35% TTD +5.3% Losers WSM -4.65% VST -4.48% CCL -3.98% DVN -3.97% CPB -3.77% *  *  *  * Earnings Report Earnings Surprises MTN Vail Resorts, Inc. Q4 $-5.08 Missed by $-0.35 *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at STEVENMAGALLANES520.NIMS@BLOGGER.COM. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized financial advice. © 2025 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.