When Starbucks announced Howard Schultz would return to the company as interim CEO, investors cheered. His first tenure as chief executive turned the company into a global brand and his second, years later, revived both the business and its stock price.
But the applause has since quieted as Wall Street forecasts that the coffee giant will keep spending money in its effort to stem a unionization tide.
The stock has slid 12% since Schultz took the reins on April 4, dragging the company’s market value down to $92.2 billion. The S&P 500 fell just 2% in the same time period. Wedbush Securities and Citi Research both downgraded shares to neutral ratings in April, citing the labor situation and other concerns.