Starbucks reported a 4% decline in same-store sales for the fourth consecutive quarter, driven by a 6% drop in store visits. Despite this, the company’s quarterly earnings and revenue exceeded Wall Street’s expectations. The company’s net income was $780.8 million, or 69 cents per share, down from $1.02 billion, or 90 cents per share, the previous year. Net sales remained steady at $9.4 billion. In the U.S., same-store sales fell 4% with an 8% decrease in traffic, while internationally, sales also dropped by 4%. In China, Starbucks’ second-largest market, sales decreased by 6% due to a 4% decline in average ticket. CEO Brian Niccol, who started in September, is focusing on a “back to Starbucks” strategy, emphasizing coffee and customer experience. The company has cut back on discounts, which fell 40% during the quarter, and is planning fewer new locations and renovations in fiscal 2025 to fund its turnaround efforts. Starbucks is also exploring strategic partnerships in China and implementing new technology to improve service speed.
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