11:12 AM EDT, 08/26/2024 (MT Newswires) -- Starbucks' ( SBUX ) newly-named Chief Executive Officer Brian Niccol could identify same-store sales drivers via throughput improvement and other measures though separating the company's international business is unlikely to prove accretive to shareholder value, Oppenheimer said Monday.

Earlier this month, the coffee giant poached Chipotle Mexican Grill ( CMG ) CEO Niccol, who will assume the top role at Starbucks ( SBUX ), effective Sept. 9.

"Mr. Niccol could identify SSS drivers through optimizing marketing/promo spend, enhancing digital/loyalty systems, and improving throughput," Oppenheimer analysts Brian Bittner and Michael Tamas said in Monday's note. "However, [Starbucks' ( SBUX )] demand softness also appears to stem from challenged price/value appeal, competitive intrusion, and highly penetrated US store-base."

Oppenheimer said that separating the international business is not likely to prove accretive to Starbucks ( SBUX ) shareholder value. "Our work suggests shifting int'l to fully licensed dilutes (Starbucks' ( SBUX )) earnings power and provides less optionality if China improves," the analysts said.

The brokerage maintained its perform rating on Starbucks ( SBUX ) shares.

Shares of the company were up more than 1% in recent trading.

Price: 95.23, Change: +1.21, Percent Change: +1.29