• Starbucks’s same-store sales remain under pressure, as management tries to orchestrate a successful turnaround.

• With well over 40,000 stores, the company is the leading player in the global retail coffee market.

• The stock trades at a steep valuation, which isn’t warranted, given its weak financial performance.

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Starbucks (NASDAQ: SBUX) is a household name. But the business hasn't worked out well for investors. The share price is down 4% in the past five years (as of Sept. 18). This is due to ongoing struggles that are hitting the company's financials, which management is trying to fix.

This restaurant stock trades 34% below its record high. But if things start improving, perhaps Starbucks can win over investors in the long run.

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Starbucks hired former CEO of Chipotle Brian Niccol a year ago to fix things at the coffeehouse chain. Starbucks has been struggling, as its brand took a hit from customers' perception about the company's political stance. And customers weren't happy with aspects of the store and ordering experience, like longer wait times, high prices, and a complex menu. It's not surprising that disappointing financial results caused the stock to perform poorly.

Niccol's notable success running the Tex-Mex fast-casual chain could help Starbucks. Key initiatives include investing more into employees to improve the customer experience. Starbucks will also simplify the menu.

The finances are still out of order, though. Same-store sales, one of the most important metrics for restaurants, declined 2% in the latest fiscal quarter (Q3 2025 ended June 29). This was the sixth straight quarter that a fall was recorded. Until this figure starts growing again, investors have every right to be concerned.

The overarching goal is to again make Starbucks a top destination for customers. A successful turnaround will take time. But there is optimism. "We're building back a better Starbucks experience and a better business," Niccol said during the company's Q3 results.

Starbucks currently sports a market cap of $94 billion, a size deserving of respect. Early investors must be pleased. Since the company's initial public offering in 1992, shares have put up a 32,850% total return (as of Sept. 18). During the same period of time, the S&P 500 has produced a total return of 3,010%.