Starbucks CEO Niccol faces margin pressure
Starbucks CEO Brian Niccol has successfully revived customer traffic and sales over his first two years. However, heavy investments in labor and restructuring have squeezed operating margins, leaving investors waiting for sustainable profit growth.
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STARBUCKS CORP CEO Brian Niccol has restored customer traffic over two years, lifting comparable sales by 7.9% in the fiscal third quarter. The turnaround strategy has squeezed operating margins down to 12.9% from 15.8% two years earlier. Investors now demand cost discipline and sustainable profit growth to match the stock's recent gains.
