The year started rough for America’s iconic sky-conquering corporation:

• Missing bolts caused a panel to blow out of a Boeing 737 Max in January, forcing the Alaska Airlines flight to complete an emergency landing with a gaping hole in its fuselage.
• Multiple federal agencies investigated the planemaker. Separately, it pleaded guilty to fraud conspiracy after the Justice Department accused it of violating its plea deal in a criminal case over two fatal 737 Max crashes in 2018 and 2019.

The accumulating troubles got then-CEO Dave Calhoun, who was brought in after the crashes to engineer a turnaround, heading for the exit. He announced in March that he would step down by year’s end. Then, in June, Boeing’s space business suffered its own humiliations: Its Starliner capsule malfunctioned in orbit with two astronauts aboard, leaving them without a way to return to Earth from the International Space Station until at least March 2025.

Calhoun was out, and new CEO Kelly Ortberg (who spent decades working for a key Boeing supplier) was installed in August. Less than a month after he got his keycard, though, Boeing machinists launched a strike that extended for seven weeks and halted much of its plane production. This left the company with a net loss north of $6 billion in Q3.

Pulling out of the nosedive

Ortberg recently presented a turnaround plan involving enhanced quality control and more hands-on leadership:

• The CEO chose to work out of Boeing’s Seattle office rather than its Chicago HQ to be closer to production lines in Washington state.
• He also grounded much of Boeing’s corporate jet fleet, telling executives to fly commercial economy to help quell the company’s cash bleed.

In 2025, he’ll need to ramp up 737 Max output, shore up Boeing’s finances, and reform its operational culture—all under a regulatory microscope.—SK

Red Lobster sits at the bottom of a deep ocean of problems, and only one thing is certain: The endless shrimp promo that became synonymous with the company is a thing of the past because “I know how to do math,” Damola Adamolekun, the company’s new CEO, formerly the leader of P.F. Chang’s, said.

The millions of dollars lost on the public’s insatiable appetite for shrimp was just one of the many reasons Red Lobster filed for bankruptcy in May and installed 35-year-old Adamolekun in August.

What else went wrong: According to Red Lobster employees who spoke to CNN, the downfall began after seafood distributor Thai Union gained 49% control of the company in 2020. New executives were hired and created a toxic work environment, according to the report. Costs were cut, diminishing the overall product, and Thai Union ended relationships with other long-term seafood suppliers to become the exclusive source of seafood, leading to Red Lobster paying more for seafood it didn’t need.

Adamolekun’s vision: Although endless shrimp indeed had an end, he kept the door open for its return in the future when he said, “Anything is possible.” There will be new items on the menu, including lobster bisque and grilled mahi. Adamolekun can also lean on his time at the helm of P.F. Chang’s, where he increased sales by 31.7% by transforming the in-restaurant and takeout experience.—DL

Halfway through this year, it looked like Nike may be more washed than an old pair of Flyknits: The company’s value plummeted by $28 billion on June 28 following a dismal earnings report.

The company had poured huge resources into digital marketing efforts, shifting away from the in-store retail strategies and sneaker technology that made Nike a household name.

Then, they let the intern make the calls. Well, the former intern. Elliott Hill took over the chief executive role in October from John Donahoe and was met with a chorus of celebration from other employees who had worked with him over his 30-year tenure at the company.

What problems did he inherit? Direct-to-consumer selling and virtual experiences pulled all the focus for several years, but they hit their stride…right as Covid restrictions were ending and people wanted to shop in person again. The digital pivot cost Nike valuable wholesale relationships, and it lost shelf space to up-and-coming competitors like Hoka and On Running.

Now…Hill is tasked with bringing the company back by refocusing on the tenets that made it a mammoth of athletic wear: technological innovation and marketing.—CC

Beans are roasting on an open fire at America’s largest coffee chain: With sales down and workers unhappy, Starbucks has suspended its sales guidance for 2025 while a new CEO tries to tape the business back together.

It’s been a rough year. According to Starbucks:

• Same-store sales dipped 2% globally over the 12 months through September, capped off with a 7% drop in the last quarter—the biggest decline since 2020.
• Full-year sales fell by 2% in the US and North America, 4% internationally, and 8% in China—Starbucks’s second-biggest market—where Chinese chains Luckin Coffee and Cotti Coffee have gobbled up space.

Chief executive transfusion: Brian Niccol, the guy who led Chipotle through the post-E. coli years, started as the new Starbucks CEO on Sept. 9. The announcement propelled Starbucks’s stock out of a monthslong crater following its first bad earnings report of the year in May.

To give Niccol room to grind, Starbucks announced in October that it would not issue earnings guidance over this next fiscal year. If Niccol successfully leads the coffee house to meet certain short-term targets, the new Venti czar could take home more than $100 million before next Christmas.

He’s begun implementing a what-if-it-were-still-2010 strategy called “Back to Starbucks,” which includes:

• Reinstituting the pre-pandemic condiment bar for cream and sugar self-service, bringing back mugs, and getting comfier furniture.
• Stocking about 200,000 Sharpies for baristas so they can once again scribble human touch on each cup.
• Removing upcharges for nondairy milk alternatives and slimming down the menu (which Starbucks was already onto—the company decided to banish its tummyache-associated Oleato drinks before Niccol came on).

Workers are overwhelmed with mobile orders, so Niccol also aims to limit online customization options. Earlier this month, he also tried to placate baristas by as much as tripling their paid parental leave. But, demanding better pay and the resolution of unsettled labor malpractice cases, the Starbucks Workers Union voted to strike on Dec. 17.—ML