Starbucks is launching new cold drinks that could increase its recovery efforts

Starbucks bets that an additional protein blow could be the jolt that his needs need. The coffee giant launched a new range of cold protein and foam drinks in the United States and Canada on Monday. They will be available on the menu all year round. Starbucks' shares have increased by more than 2% - the scale of the year's declines which are now less than 7%. The stock, however, underperformed the S&P 500, which won 13% in 2025. Wells Fargo considers these new protein drinks as a "next potential catalyst" for the American sales of the company, the analyst wrote in a research note to customers on Monday. They estimate that the launch could add around 250 base points, or 2.5 percentage points, to sales with comparable stores. This results in around $ 720 million in sales if "attachment rate" - how often customers add proteins to their regular order - have reached 10%. "The protein is fashionable and could widen Starbucks customers," wrote analysts. The bank estimates that the American fast service protein drinks is around $ 10 billion - and if Starbucks captures a share of 10%, it could represent an opportunity to sell a billion dollars. Starbucks has history of experimentation with new drinks to increase sales, although the results have been mixed. The former CEO Laxman Narasimhan has pushed new drinks during his short term, including summer refreshments and a lavender oats, but they have not significantly changed the business growth trajectory. Before him, the CEO Howard Schultz tried to stir the momentum with a very publicized launch of Oleato, a line of coffee infused with olive oil, which generated Buzz but ultimately failed to make up for its customers. The unequal history show the difficulty of finding a break that resonates through the customers of Starbucks. This is why, unlike past launches, the current CEO of Starbucks, Brian Niccol, introduced protein drinks thanks to its new Starting 5 state process, which is designed to test customer demand and operational processes in five coffee makers before gradually deploying new products to a larger and wider number of locations. Wells Fargo analysts have highlighted the distinction, noting that the protein is Niccol's "first major innovation in the new stage stage process", suggesting that the structured approach increases the probability that protein drinks resonate with customers. Niccol also relied on the test of the stage door test during his mandate as a CEO of Chipotle, who helped him to a veterinarian and finally launched successful menu products such as Queso Blanco and the Lifestyle Bowls. Wells Fargo analysts added that in case of success, the protein initiative could "give credibility to a multitude of recent recovery efforts" under Niccol. In other words, this could be an evidence that could help bring investors' confidence in Starbucks recovery efforts, the last of which includes a recently announced restructuring plan involving store closings and corporate layoffs. These are actions that Wells Fargo estimates will generate more than $ 175 million in annual profits before interest and tax savings (EBIT). SBUX YTD Mountain Starbucks YTD, of course, the bank has warned that Starbucks is still faced with many short -term opposite winds. The main North American compositions of the company should remain stable while increasing coffee prices and an expensive turnaround weighs profitability. Analysts have reduced their 2025 exercise forecasts and 2026 exercise on action forecasts (BPA), claiming that "long -term game is still in the first days" and the risk of execution remains high. This uncertainty is reflected in the Starbucks stock. The shares are down approximately 10% because it said that budgetary budgetary profits, because investors have shown that Starbucks is a "show me" story, which means that they must see evidence of progress before the shares can move forward. Wells Fargo has a price target of $ 105 per share and a purchase note on action. In the end, although Starbucks' short-term prospects can remain jerky, it is possible that the new protein drink platform is an intelligent decision that draws from consumer health trends and has the potential to stimulate sales by widening its customers. We have been monitoring this launch since Starbucks announced it for the first time, and see it as an intelligent decision to enter the enthusiasm of proteins. According to Starbucks, 70% of Americans try to add more protein to their diet, which shows considerable appetite for new options. If it is well executed, the launch could mark an important step in Niccol's recovery strategy and help restore the confidence of investors in the business growth trajectory. We maintain our goal of note to 1 equivalent of purchase and price of $ 100. We recognize that putting things back on the right track to Starbucks takes longer than we had thought about the origin. But we continue to consider the turnaround under Niccol as moving in the right direction. Our confidence in Niccol's ability to withdraw it remains high. (Jim Cramer's Charitable Trust is long sbux. See here for a full list of actions.) As abonted at the CNBC Investing Club with Jim Cramer, you will receive a commercial alert before Jim is doing a business. Jim is waiting for 45 minutes after sending a commercial alert before buying or selling a stock in the portfolio of his charitable trust. If Jim spoke of a stock on CNBC TV, he waits 72 hours after issuing the commercial alert before running the trade. 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