Starbucks CEO Says ‘Green Apron’ Push, Protein Drinks Are Paying Off — Stock Still Can’t Catch A Break

Starbucks Corp. CEO Brian Niccol on Wednesday said two company initiatives — a protein add-on option and the "Green Apron Service" to enhance customer experience — are delivering strong results, even as the coffee chain’s stock continues to struggle to regain its former highs.

In an interview with CNBC's Jim Cramer, Niccol also said that Starbucks would be a long-term player in China amid the coffee chain's discussions with investors to divest a stake in the China business.

"We had a great start," Niccol said, referring to protein lattes and protein cold foam introduced last month. "I think it's really a function of the tremendous progress with our Green Apron Service model."

Launched in July, the initiative aims to enhance customer service by encouraging baristas to be friendly, genuine, caring, knowledgeable, and engaged when serving customers.

Niccol said the company has shifted its focus from "task," referring to the coffee-making operations, "to customer service... We've started the process of uplifting our stores, bringing them back to a coffee house."

A lot of customers have told management that they have noticed a difference, he added.

"As we continue to make progress, the stock will take care of itself," Niccol said.

The comments highlight Starbucks' renewed focus on elevating the customer experience as its key strategy to revive the coffee chain's business. In recent years, the company has struggled amid intensifying competition, shifting consumer preferences, and a growing perception that its coffee is expensive.

Retail Trader Confidence In SBUX Remains High

On Stocktwits, the retail sentiment for SBUX was 'bullish' as of late Wednesday, slightly higher than from a day ago, tracking the stock's gain in the last three sessions. Yet, shares are down 9.2% year-to-date.

One bullish watcher on the platform said they had added some SBUX stock "for ER [earnings report] run swing," while another pinned hopes on the company's offerings for "Pumpkin Spice season," which typically occurs ahead of Halloween and Thanksgiving.

Last month, Starbucks said it’s cutting roughly 900 corporate jobs and closing underperforming North American stores as part of a sweeping cost-reduction and reinvestment plan aimed at reviving its cafes.

The company is scheduled to report fiscal fourth-quarter earnings on Oct. 29, with analysts expecting earnings per share of $0.56 on revenue of $9.35 billion.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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