U.S. Operations See Decline, but Turnaround Gains Traction
Starbucks’ U.S. same-store sales fell 4%, driven by an 8% drop in customer traffic. However, Niccol’s efforts to bring the company “back to Starbucks,” with a renewed focus on coffee, simplified menus, and customer experience improvements, have started to gain traction. The company eliminated extra charges for nondairy milk and introduced operational changes, such as shorter wait times, which have been positively received.
Shares of Starbucks rose nearly 4% in extended trading, as investors viewed the smaller-than-expected sales decline as evidence that the turnaround plan is taking root.
China Challenges Persist Amid Competitive Pricing
In China, Starbucks’ second-largest market, same-store sales fell 6%, with a 4% decline in average ticket prices. The company has…
Read More
