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Starbucks Launches Pumpkin Spice Latte Early but It Won't Help
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24/7 Wall St. Insights
- Before the new Starbucks Corp. (NASDAQ: SBUX) CEO can even set up his remote office, the company decided to release its popular pumpkin spice latte.
- It is an indication of why Starbucks needs an adult to run it.
- Also: 2 Dividend Legends to Hold Forever.
Before new Starbucks Corp. (NASDAQ: SBUX) CEO Brian Niccol can even set up his remote office, the company made the odd decision to release its popular pumpkin spice latte. This is a mere two days earlier than last year. It means the Starbucks autumn menu will be offered in its stores before the summer has even ended.
According to CNN, seasonal food and drink sales are about 10% of total Starbucks sales. However, it is hard to believe that a single drink will make any difference. The news channel described the drink as “beloved.”
Thomas Prather, vice president of marketing at Starbucks said, “When [pumpkin spice latte] comes back — it’s something that you’ve remembered over the years and it’s like, OK, something in my life is normal and predictable and comforting.”
The decision is a sad attempt to restart sales before CEO Niccol can make any decisions on his own. It is also an indication of why Starbucks needs an adult to run it.
Before the news that Niccol would take over as chief executive, Starbucks stock was down 25% for the year. Comparable store sales were down 2%. While that does not seem like much, investors have watched comparable store sales rise for years.
A one-drink decision is an embarrassment.
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