Starbucks says turning on track as sales descend

(Bloomberg) – Starbucks Corp. Quarterly sales fell slightly faster than expected, and emphasized how hard the coffee chain will have to work to regain lost land. Sales of the same stores fell by 1% in the quarter in the quarter, according to a statement Tuesday, which did not fall the average estimate of analysts asked by Bloomberg. Earnings per share also missed expectations. The shares fell into extensive trading in New York. Starbucks is working to revive the growth in the sale after price increases, long lines and boycotts associated with the company’s perceived attitude about war in the Middle East. The company is also working on the growing fatty prospects of the Americans, which also contributed to poor results at Chipotle Mexican Grill Inc. Under the CEO Brian Niccol, who started in September, Starbucks kicked off a renovation of his cafes to make them more welcoming. It also works to speed up service by adding more workers to stores and performing an algorithm to prioritize initiatives, among other things. “Our financial results do not yet reflect our progress, but we have a real momentum with our ‘Back to Starbucks’ plan,” Niccol said in remarks released with the earnings report, adding “we know we will return the business.” Analysts lowered their expectations for sales of the same stores before the earnings report, according to the data compiled by Bloomberg. Third-party sources, including the mobility data of Placer.ai, indicate that visits to Starbucks slipped in the first three months of 2025 from a year ago. Analysts also aimed at the costs associated with the company’s corporate restructuring, as well as expenses linked to the turnaround efforts. The results with comparable sales are an improvement in the company’s previous quarter, when the measure fell by 4%. This is the fifth consecutive decline. Comparable sales in China were flat, better than expected and a significant improvement from the previous quarter. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP first published: 30 Apr 2025, 01:57 am Ist