Wall Street Breakfast Podcast: Starbucks Perks Up After Turnaround Update

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bgwalkerListen below or on the go on Apple Podcasts and SpotifyStarbucks (SBUX) outlines acceleration of Green Apron Service to all U.S. stores by mid-August, signals $0.5B labor investment for FY26. (00:20) Tsunami alerts for US West Coast after major earthquake off Russia's Far East. (01:59) Strategy (MSTR) buys $2.4B in bitcoins using proceeds from preferred stock sale. (02:52)Starbucks is on our biggest movers list. Shares are up 5% premarket.The company reported better-than-feared FQ3 results, driven by resilient same-store sales that helped offset margin weakness. Comparable store sales in China rose 2% (vs. 1.44% est.), while North America declined 2%, less than the expected 2.49% drop.Total revenue grew 4% Y/Y to $9.46B, topping estimates by $150M. Adjusted EPS of $0.50 missed the $0.65 consensus due to an $0.11 discrete tax charge.CEO Brian Niccol noted that the turnaround is “ahead of schedule.”Niccol introduced the Green Apron Service, calling it "Starbucks' biggest investment ever in operating standards and customer service." He said, "Coffeehouses using Green Apron Service have driven improvements in transactions, sales and customer service times."Starbucks plans to uplift at least 1,000 stores across North America by the end of 2026, introduce a new store prototype with 30% lower build cost, and sunset the mobile order and pickup-only concept in fiscal 2026.Significant menu innovations are also planned for 2026.One of the questions on the earnings call was about China. Niccol added that the company remains committed to its China business and wants to retain a meaningful stake. He added, "We will only enter a transaction if it makes sense for Starbucks."An 8.8-magnitude earthquake, one of the strongest on record, off Russia's far eastern coast has triggered tsunami warnings and evacuation orders across the Pacific.The earthquake happened overnight near Russia's Kamchatka Peninsula, followed by aftershocks with a magnitude of over 5 off the coast of the peninsula and tsunami waves. Injuries and property damage have been reported.This was among the top ten largest earthquakes to occur globally since 1900, according to the U.S. Geological Survey, and the strongest since the 2011 earthquake in Japan.Tsunami waves reached parts of Japan's Pacific coast overnight, with authorities warning that waves could reach as high as nearly 10 feet.In the U.S., tsunami warnings and advisories have been issued for Hawaii, parts of Alaska, Northern California, Washington, and Oregon.Strategy (NASDAQ:MSTR) said on Tuesday it has acquired around $2.4 billion worth of bitcoins, using funds from the sale of its new preferred stock, STRC.The company announced the closing of its initial public offering of 28,011,111 shares of Variable Rate Series A Perpetual Stretch Preferred Stock (STRC). Originally targeting $500 million, the company ended up raising nearly $2.5 billion from investors in the offering.Using the net proceeds (approximately $2.474 billion), Strategy purchased 21,021 BTC at an average price of $117,256 per coin. This brings the firm’s total bitcoin holdings to 628,791 BTC, valued at nearly $74.3 billion based on current prices.STRC is set to begin trading on Nasdaq Global Select Market today.What’s Trending on Seeking Alpha:SoFi Technologies stock stumbles after pricing $1.5B share offeringVisa signals momentum in value-added services with 26% revenue growth as digital and AI initiatives advanceMeta faces Italian regulator's probe over AI service in WhatsAppCatalyst watch:Dow, S&P and Nasdaq futures are in the green. Crude oil is down 0.6% at $68/barrel. Bitcoin is up 0.3% at $118,000. Gold is up 0.2% at $3,332.The FTSE 100 is down 0.2% and the DAX is up 0.3%.The biggest movers for the day premarket: LendingClub (NYSE:LC) +23% — Shares soared after Q2 EPS more than doubled Wall Street estimates, and upbeat Q3 guidance signaled strong loan origination ahead.On today’s economic calendar:8:15 am ADP Employment Report: The consensus sees private payrolls up by a modest 75K in July after falling 33K in June.8:30 am GDP: Growth is expected at a 2.5 percent rate in the first look at Q2 after falling by 0.5 percent in Q1.2:00 pm FOMC Announcement2:30 pm Fed Chair Press ConferenceWall Street Lunch with Kim Khan will cover the chairman’s press conference so that means the show will be published later than usual.