Nike and Starbucks, both struggling to grow, face pressure on margins. New CEOs are implementing turnaround strategies. Nike fell 16% and Starbucks 8% last year. Brian Niccol leads Starbucks, focusing on menu simplification and customer experience. Elliott Hill heads Nike, focusing on brand investment and partner relationships. Both companies show progress in recent quarters.

Nike’s gross profit margin remains more stable than Starbucks’, which has faced a larger decline due to rising costs. Starbucks sells 60% of its China business amidst competition from Luckin Coffee. Both companies face challenges with premium pricing and lackluster revenue growth. Nike, favored for its strong brand, may have an edge over Starbucks in the market.

Investors considering Nike should note that it did not make the Motley Fool’s top 10 stocks to buy now. The Stock Advisor’s total average return is 970%, outperforming the S&P 500. While both companies are risky, Nike is currently favored. David Jagielski, CPA, has no position in the mentioned stocks. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Luckin Coffee, Nike, and Starbucks.

Read more at Yahoo Finance: Which Turnaround Effort Is More Likely to Succeed?