Starbucks executives are pleased with the company’s turnaround plan in the third-quarter earnings release, with sales meeting expectations. Comparable store sales globally declined 2%, driven by a 2% drop in transactions offset by a 1% increase in the average ticket.

Domestic sales also saw a 2% decline, with transactions down 4% and average ticket costs up 2%. CEO Brian Niccol stated that price increases would be a last resort in the company’s turnaround strategy.

Analysts surveyed by Bloomberg noted a 0.5% global sales miss from expectations, while domestic sales performed slightly better than expected. Niccol expressed confidence in the company’s progress, stating they are ahead of schedule in the turnaround.

Starbucks opened 308 new stores globally, with U.S. and China locations making up 61% of outlets. China saw a 2% increase in comparable store sales, marking the first gain in the country since 2023, according to Bloomberg.

The company’s CFO, Cathy Smith, highlighted “tangible progress” in the “Back to Starbucks” strategy, aiming for durable, long-term growth. Niccol emphasized the importance of creating the right atmosphere in coffeehouses to attract and retain customers.

Niccol announced plans to accelerate the rollout of a new staffing and service model in North American stores. Early tests have shown improved service times and increased sales, leading to a $500 million investment in more labor for company-owned stores.

Under Niccol’s leadership, Starbucks has implemented changes like increased in-office work requirements for corporate employees and an updated dress code. These changes have caused unionized baristas to strike, reflecting the company’s evolving strategy.

Read more at Yahoo Finance: Starbucks execs say ‘tangible progress’ made in turnaround effort; sales slump slightly