Same-store sales fell for the fifth straight quarter.
Transcript:
Despite what CEO Brian Niccol sees as “momentum” in Starbucks’ turnaround plan, the company had a disappointing first quarter. In its most recent report, Starbucks revealed it missed on both earnings and revenue estimates. Same-store sales also declined again.
Of its Q1 report, Niccol said, “Our financial results don’t yet reflect our progress, but we have real momentum with our ‘Back to Starbucks’ plan. We’re testing and learning at speed and we’re seeing changes in our coffeehouses.”
Since taking over in August 2024, Niccol has implemented a host of changes to try and win back customers. Earlier this month the company announced a new dress code for baristas. And in an effort to cut costs, Starbucks also said it would cut roughly 30% of its menu, and eliminate 1,100 corporate positions.
High prices, long wait times and employee backlash have all factored into a decline in sales for 5 straight quarters.
That’ll do it for your daily briefing. From New York City, I’m Kelsey Barberio with TheStreet.
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