Pressure from former Starbucks (SBUX) CEO Howard Schultz is beginning to brew.

Schultz, who no longer has a formal role in the company, was quick to weigh in on the coffee giant's latest miss. In a LinkedIn post on Sunday, the founder and former CEO said he has been asked by "people inside and outside the company" for his thoughts on the earnings miss.

He wrote that issues need to be fixed in the US first, with a need to "overhaul" the current strategy and focus on "coffee-forward" innovations and core products.

Schultz remains the chain's largest individual shareholder with nearly 21.8 million shares, worth roughly $1.6 billion.

Some investors are left questioning whether this means a potential fourth return as CEO, with current head honcho Laxman Narasimhan only recently reaching one year in the role. Narasimhan plans to bolster declining sales trends with various tactics such as value offerings, new items like boba-tea like pearls, energy drinks, and speedier service.

When he left for the third time last year, Schultz said publicly he had no plans for a comeback.

Some on the Street seem willing to give the executive team time to turn around the sinking ship, though Starbucks stock dropped 17% in the last month alone.

"It's been a relatively short amount of time [for Narasimhan as CEO] ... time will tell that how successful some of the strategies they have in place are and getting the business turned," Bank of America analyst Sara Senatore said over the phone.

Senatore, who has a Buy rating on Starbucks, said that the company's share price plunge of 14% the day after its Q2 earnings result was "outsized."

"Restaurants have recovered from worse than this," she said, pointing to Chipotle's 2015 E. coli breakout fiasco. Chipotle's stock recently closed at a record high following a stellar earnings report.

But don't dismiss the power Schultz has.

"I never underestimate Howard's advice, or ... how close he is to the issue, especially when it comes to employee engagement," Senatore said. In March 2022, Schultz took back the reins as interim CEO following the retirement of then-CEO Kevin Johnson as unionization efforts ramped up across the US.

Schultz stepped down in favor of Narasimhan in March 2023 and had to testify on Capitol Hill about his company's union response later that month.

Investors are feeling Schultz's frustration, though.

"I actually think they're going the wrong way ... the business should simplify and focus on the core," Jefferies analyst Andy Barish told Yahoo Finance over the phone. "They're going in way too many directions at once when the business is deteriorating."

Starbucks CFO Rachel Ruggeri recently told Yahoo Finance that the company does not plan to lower prices, but she did say it "didn't respond fast enough" when the occasional customer pulled back spending. She pointed to upcoming digital initiatives and rewards programs to help regain customers.

Others say the company needs to lay out more explicitly how it's turning the tide.

"A lot of investors are very frustrated right now, and they want a lot of hand holding on not only what they're going to do from a sales standpoint ... [but] 'simple things' they can do from a cost savings standpoint," Citi analyst Jon Tower told Yahoo Finance.

On Wall Street, the stock currently has 12 Buy ratings, 24 Holds, and one Sell, with four recent downgrades in the mix.

—

Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at [email protected].

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance