The Starbucks logo was seen on a cup in one of its cafes on April 26, 2024.
Jakub Porzycki/ | Norfuto Gety pictures
Starbucks Tuesday I mentioned Its sales themselves fell for the fourth quarter in a row, but the company’s quarterly profits and revenues beat Wall Street.
The coffee giant started a plan in the last quarter in the hope of reviving its American business, which decreased during the past year.
CEO Brian Nicole said in A. The video was released On the company’s website on the web on Tuesday afternoon.
He added that the company had seen a “positive response” to the early steps it took. These pirates included removing the additional fees for non -dairy milk options, focusing their marketing on their coffee and starting the list repair.
The shares of the company increased by 3 % in extended trading.
Here is what the company informed compared to what Wall Street expected, based on a survey of analysts by LSEG:
- Arrow profit: 69 cents against 67 cents expected
- Revenue: 9.4 billion dollars for $ 9.31 billion expected
Starbucks reported that net income in the first financial quarter, which is attributed to the company of $ 780.8 million, or 69 cents per share, decreased from 1.02 billion dollars, or 90 cents per share, a year ago.
Net company sales It has not changed 9.4 billion dollars for the previous year.
Starbucks sales in the same store decreased by 4 %, nourished by a 6 % decrease in traffic to its stores. Wall Street expected a 5.5 % sharp decrease, according to street estimates. Both American and international sites outperformed expectations.
The store’s sales in the United States decreased by 4 %, as traffic fell to its cafes by 8 %. Under the leadership of Nicole, who got the reins in September, the company is trying to circumvent its American business by returning to Starbucks “and re -focusing it to coffee and customer experience.
Outside its local market, sales of the same stores decreased by 4 %.
Starbucks sales in the store decreased in China, its second largest market, by 6 %, nurturing it by 4 % in a medium ticket. The coffee giant tended to discounts in China to compete with competitors who had much lower prices, such as Luckin coffee.
In October, the company suspended its forecast for the 2025 fiscal year, noting the transformation efforts. Starbucks also plans for fewer new sites and renovations in 2025 to free capital to feed its return.
Niccol also has plans for companies’ workforce in Starbucks. The company’s structure, including dividing the president’s role in North America into two functions. Earlier on Tuesday, the company announced that it had rented graduates from Taco Bell, the owner of Nicole before Chipotel.
In early March, the company plans to lay off workers, although Starbucks has not yet participated in the number of jobs that will be affected.
