Starbucks On Tuesday, the same store sales slipped for the fourth consecutive quarter, but the company’s quarterly profits and profits beat Wall Street’s expectations.
Large coffee companies have begun a turnaround plan in the last quarter to revive the US business for the past year.
Brian Niccol, CEO of Brian Niccol, said in a video released on the company’s website on Tuesday afternoon, “There is room for improvement, but it is making progress as planned, and confidence is on the right way.”
He added that the company saw a “positive response” to the initial stage. These adjustments included removing additional charges for non -high milk options, focusing on marketing on coffee, and cutting 30%of food and drink menu items by the end of the 2025 fiscal year.
Based on the LSEG analyst survey, the company reported compared to what Wall Street expected.
- Revenue: 69 cents vs. 67 cents
- revenue: $ 9.4 billion to $ 93.1 billion
Starbucks reported that the first quarter net profit decreased from $ 1/4 million in 1Q to 69 cents per share in the first quarter or 69 cents.
Company’s net sales The $ 9.4 billion in the previous year has not changed.
Starbucks’ sales of the same store decreased by 4%, and the traffic to the store was reduced by 6% to fuel. According to the StreetAccount estimates, Wall Street was expecting a steep fall of 5.5%. Both the United States and the international region surpassed expectations.
As the traffic of cafes decreased by 8%, the US sales of the same store slipped 4%. Under the Niccol, which occupied the reins in September, the company is trying to change the US business by focusing on coffee and customer experience.
STARBUCKS was reducing the transaction, so the discounted transaction decreased by 40%. During the quarter. Niccol has recognized a discount on improving sales of chains throughout the quarter.
The same store sales other than the housing market also decreased by 4%.
In China, the second largest market, Starbucks’ sales of the same store decreased by 6%, resulting in fuel by 4% decreased by 4%. Coffee Giant relies on China’s discounts to compete with rivals with much lower prices, such as Rough Kean Coffee.
Nicole said he first visited a store in China last week. The company is growing in this country by exploring strategic partnerships.
“We are dealing with these learning, and we will share more as we do,” he told the analysts about the company’s conference call.
In October, the company stopped the 2025 fiscal year and cited the processing efforts. On the phone on Tuesday, the management was far from reducing the cost of supply chain by 2028 by 2028. Niccol’s predecessor LAXMAN NARASIMHAN shared the number a few months before the start of sales in April 2024 and getting out of work.
Starbucks is also planning a fewer new locations and renovations to secure capital to reduce new locations and renovation in the 2025 fiscal year. But Niccol has a strong demand for more cafes in the long run.
Niccol said, “We are seeing the potential to double the number of stores, while improving the overall health of portfolio in the United States.
The company is also trying to book more workers, remove bottlenecks behind the coffee counter, and make baristas’ jobs easier to speed up the service.
For example, Starbucks plans to prioritize siren equipment installation in the busiest position, Niccol said. The new equipment includes customized ice dispensers, milk decomposition systems and faster blenders, allowing Baristas to make drinks faster.
Starbucks also pilots a new algorithm to manage the order of BARISTAS to make both mobile and stores. Successful algorithms can solve Starbucks’ overcrowded pickup counter, which can cause frustration for both customers and baristas.
Niccol also plans for STARBUCKS’s corporate personnel. He has reconstructed the company’s structure, including dividing the role of the North American president into two jobs. On Tuesday, this company announced that it hired two alumni in Niccol’s employer, Taco Bell, before Chipotle.
In early March, the company plans to dismiss workers, but Starbucks has not yet shared jobs that will be affected by how many jobs are affected.
