Starbucks (SBUX) is seeking to discover its footing amid a sea of rising international competitors.Shares of the espresso chain are struggling as the corporate is being hit on a number of fronts, with a pullback in occasional visits within the US, cautious customers in China, and rising investments in espresso from gamers large and small.The continuing Center East battle presents one other headwind, which prompted CEO Laxman Narasimhan to share his issues about misinformation being unfold concerning the firm in an inside memo.12 months to this point, shares of Starbucks are down 5%, in comparison with the S&P 500’s (^GSPC) roughly 9% acquire.Although the corporate is dealing with an uphill climb, Deutsche Financial institution analyst Lauren Silberman informed Yahoo Finance that the worst is over for the inventory. “We see restricted draw back and imagine the chance and reward is skewed to the upside” transferring ahead, stated Silberman.It’s going to take time to carry clients again in, however Starbucks can flip issues round with product innovation, significantly that geared towards Gen Z and millennial clients, added Silberman.That features the launch of three new beverage flavors this fiscal 12 months, together with its first, lavender, on March 7.”A few of their early Instagram posts … introducing lavender … [had] a few of the greatest engagement that I’ve seen on Starbucks posts in a really very long time,” Silberman stated. “Lavender in itself appears to be a rising pattern common with the youthful shopper.”Within the US, Starbucks is shifting extra of its advertising finances to social media to achieve Gen Zers and millennials, who make up roughly 51% of its buyer base, per a consumer observe from TD Cowen analyst Andrew Charles. Final 12 months, its promoting bills got here in at $508 million globally.The corporate is exploring power drinks, which may also help entice youthful drinkers and afternoon guests, in line with Charles. It is working to enhance US and China same-store gross sales, however administration has projected fiscal Q2 to have tender income development.Story continuesPhoto taken on Feb 25, 2024, reveals a close-by Luckin Espresso and Starbucks retailer in Hangzhou, East China’s Zhejiang province. (Future Publishing through Getty Photographs)Nevertheless, gaining share will not be straightforward in a aggressive US market. Upstart drive-through espresso chain Dutch Bros (BROS) is already providing power drinks, which make up roughly 20% to 25% of its complete gross sales, in line with Charles’s observe.In February, Dunkin’ Donuts additionally launched a brand new line of iced power drinks, SPARKD’.Up to now, Dutch Bros and Starbucks usually are not hurting each other, William Blair analyst Sharon Zackfia informed Yahoo Finance again in January, including that the general espresso enterprise usually has “distinctive” margins.These margins are drawing quick meals giants like McDonald’s (MCD), Wendy’s (WEN), Burger King (QSR), and Taco Bell (YUM) into the breakfast sport.McDonald’s, which launched its first drive-through beverage and breakfast restaurant CosMc’s final December, introduced on Tuesday that it is partnering with Krispy Kreme (DNUT) to promote its doughnuts in any respect eating places nationwide by 2026.Silberman stated Starbucks is not “meaningfully shedding share” within the rising espresso and drinks class and that there will be room for everybody because the business continues to develop.However the espresso chain can be dealing with rising competitors in China, the place it has introduced main development ambitions.Starbucks has constructed up its presence within the nation over the previous 25 years, opening its first retailer in Beijing in 1999. Final September, Starbucks introduced its 20,000th location outdoors of North America and plans to develop to 9,000 shops in China within the subsequent two years.The corporate has additionally invested in constructing an ecosystem, saying the opening of its $220 million China Espresso Innovation Park manufacturing facility final fall.Executives on the helm are making the case that the Asian market is a long-term play.”China’s espresso market remains to be in its early phases, with large potential to develop the addressable market,” Starbucks China CEO Belinda Wong stated throughout Starbucks’ 2022 Investor Day. “Per capita demand for espresso in China will develop farther from 12 cups per 12 months to 14 cups by 2025.”Nevertheless, native impartial espresso outlets and low cost chains like Beijing-based Luckin’ Espresso (LKNCY) current a problem to Starbucks’ plans, significantly because the Chinese language financial system slows down.”The China surroundings stays promotional, which Starbucks is attempting to steadiness with focused presents … whereas attempting to take care of the model’s premium positioning,” wrote Charles. “We anticipate intense market share competitors to linger in China for the foreseeable future.”—Brooke DiPalma is a senior reporter for Yahoo Finance. Comply with her on Twitter at @BrookeDiPalma or electronic mail her at bdipalma@yahoofinance.com.Click on right here for the newest inventory market information and in-depth evaluation, together with occasions that transfer stocksRead the newest monetary and enterprise information from Yahoo Finance