From CNBC: 2024-10-22 17:34:16

Starbucks posted preliminary quarterly results showing a 3% decline in sales. CEO Brian Niccol plans to reveal steps to boost growth on Oct. 30. The company aims to simplify its menu, improve pricing, and enhance customer experiences. Net sales totaled $9.1 billion, with share prices falling over 3% in extended trading.

For the third quarter in a row, Starbucks witnessed a 7% drop in same-store sales. In North America, sales fell by 6%, with a 10% decrease in traffic despite increased promotions. In China, same-store sales plunged 14%. Starbucks suspended its 2025 outlook but raised its dividend. The company is focused on developing a turnaround strategy under new leadership.

New CEO Brian Niccol is facing challenges as Starbucks struggles with declining US and China sales. Niccol seeks to revitalize the company by improving customer experiences, morning services, and branding. He has brought in new leadership and plans to address the business’s weaknesses. Shares of Starbucks rose 1% this year, with a market cap exceeding $109 billion.



Read more at CNBC: Starbucks releases preliminary results, says sales fell again