Expert Slams Starbucks CEO's Response To Falling Stock Performance: 'You Got To Be On Drugs To Say Something Like That On National Television'

Former TD Ameritrade CEO, Joe Moglia, has criticized Starbucks Corporation SBUX CEO, Laxman Narasimhan, for his handling of the company’s falling stock performance.

What Happened: On Monday, Moglia expressed his views during “Last Call” by CNBC. He highlighted a recent CNBC interview featuring Narasimhan and “Mad Money” host Jim Cramer where the latter grilled the Starbucks CEO over the company’s declining stock performance. Moglia supported Cramer’s line of questioning and criticized Narasimhan’s responses.

Moglia said, "I think what he said was ‘the plan we have in place is actually pretty good.’ You got to be on drugs to say something like that on national television.”

"What you're doing is not working. You've got to acknowledge that."

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Why It Matters: Narasimhan has been facing significant challenges since taking over as CEO of Starbucks a year ago. The company’s shares have plummeted following a disappointing quarterly performance, with a global decline in comparable store sales of 4%. The company’s stock performance has been further impacted by factors such as weather conditions and global conflicts.

Former Starbucks CEO Howard Schultz also urged the company to acknowledge its faults and revamp its operations in light of the sales decline. Starbucks, grappling with inflation, faces challenges in attracting budget-conscious consumers.

Price Action: On Monday, Starbucks’ stock closed at $72.90 and was trading at $72.94 in the after-hours, according to Benzinga Pro.

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