From CNBC: 2025-01-28 16:05:55

Starbucks reported a fourth consecutive quarter of declining same-store sales. However, quarterly earnings and revenue exceeded Wall Street’s expectations. The coffee giant is in the midst of a turnaround plan focused on reviving its U.S. business, which has seen a slump over the last year. CEO Brian Niccol expressed confidence in the progress made, citing a video released on the company’s website.

Earnings per share came in at 69 cents, beating the expected 67 cents, while revenue reached $9.4 billion, surpassing the expected $9.31 billion. Net sales remained unchanged from the previous year. Same-store sales fell 4%, with a 6% drop in store traffic, outperforming analyst estimates of a 5.5% decline.

In the U.S., same-store sales declined 4% with an 8% drop in store traffic. Internationally, same-store sales also fell by 4%. In China, the second-largest market for Starbucks, same-store sales dropped by 6%, driven by a 4% decrease in average ticket. The company has been utilizing discounts in China to compete with lower-priced rivals like Luckin Coffee.



Read more at CNBC:: Starbucks (SBUX) Q1 2025 earnings