Starbucks Stock (SBUX) on the Rebound After New CEO Hire: Here Are ETFs With Starbucks Exposure to Consider

Starbucks shares (NASDAQ: SBUX) popped more than 24% this week after announcing the hire of Brian Niccol as its new CEO and Chairman due to his impressive track record of revitalizing companies facing challenges.

Niccol gained recognition for his leadership at Taco Bell and, more notably, at Chipotle, where he successfully turned around the company's fortunes after it had been plagued by a series of foodborne illness outbreaks. Under his guidance, Chipotle saw significant revenue growth and improvements in employee benefits, making him one of the most sought-after executives in the corporate world.

Starbucks brought him on board with the expectation that he could similarly rejuvenate the coffee giant, particularly as it seeks to revive declining sales and re-establish itself as a premium brand.

What happened to Starbucks Shares this Year?

Starbucks is grappling with a confluence of challenges which pulled down its stock price over the past year. Disappointing financial performance and lowered guidance have underscored a decline in global sales, primarily driven by fewer customer visits and shrinking profit margins. Key markets, notably North America and China, have experienced significant setbacks.

Rising operational costs, including labor, benefits, and marketing, have further squeezed profitability. This, coupled with a cautious consumer climate, has intensified pressures on the company.

Moreover, external factors such as the Israel-Hamas conflict, boycotts, increased competition in China, and a slowing Chinese economy have compounded Starbucks' difficulties.

Are there any Starbucks ETFs?

Despite the wave of new single-stock ETFs launched over the past year, there isn't one that offers single-stock exposure to Starbucks. These ETFs typically focus on highly volatile growth stocks, often employing leverage strategies to amplify potential capital gains or covered call strategies to generate income. However, Starbucks doesn't fit this profile, as it's generally considered a well-established blue-chip stock, despite its recent decline.

However, there are certainly many diversified ETFs who have exposure to Starbucks. Here’s how you can find them on Trackinsight.

1. Go to https://www.trackinsight.com/en/etf-screener
2. In the filter’s section on the right, type “SBUX” in the “Underlying holdings” search box. Select “Starbucks Corporation”.

Scroll down to the list of results, select the region you live in, and then click on “Exposure to SBUX” to sort by level of exposure.

And there you have it.

One of the notable ETFs of the list is the Consumer Discretionary Select Sector SPDR Fund (XLY) which has Starbucks among its top 10 holdings. The fund tracks the Consumer Discretionary Select Sector Index and invests in companies from the following industries: specialty retail, broadline retail, hotels, restaurants and leisure, textiles, apparel and luxury goods, household durables, automobiles, automobile components, distributors, leisure products, and diversified consumer services.

With hundreds of ETFs offering exposure to Starbucks in our database, create a free Trackinsight account to build custom ETF lists, track key metrics, and compare up to 5 ETFs side-by-side, helping you find the best option for your portfolio.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.