Starbucks On Tuesday, he reported his sixth consecutive quarter of the decrease in sales in the same store as the company implements a response strategy.
CEO Brian Niccol said in a statement that the company's return is ahead of the expected, depending on his past experience, which includes turning Chipotle Mexican grill After a series of food security scandals.
“While our financial results still do not reflect all the progress we have achieved, the signals are clear: we are gaining impulse,” Niccol said in a previously recorded video published with the profit report.
The company's shares increased 4% in the extended trade.
This is what the company reported for the quarter that ended on June 29 compared to what Wall Street expected, based on a LSEG analysts survey:
- Profit per action: 50 tight cents. It was not clear immediately if it was comparable to the 65 expected cents.
- Revenue: $ 9.5 billion compared to $ 9.31 billion expected
Starbucks reported that the net income of the third fiscal quarter attributable to the company of $ 558.3 million, or 49 cents per share, below $ 1.05 billion, or 93 cents per share, a year earlier.
Excluding restructuring costs and other articles, the company won 50 cents per share. A discrete fiscal element and a unique investment organized by the company's three -day event for American store managers weighed the company's profits per action in 11 cents.
Net sales increased 4% to $ 9.5 billion.
But global sales in the same store decreased by 2%, a more pronounced drop than estimates of a 1.3%decrease, according to Streetacount estimates.
However, the American coffees of Starbucks served better than expected. Sales of the same North America store of the chain fell by 2%, a decrease less than that of 2.5% projected by Wall Street, according to Streetacount. Transactions fell 3%, but the average ticket increased by 1% in the quarter.
“In the US, the commitment of the partners is increasing, the customer connection scores are above, the completion of the shift is in a record, the transactions of the non -rewards of height, and the transactions of the customers that are returned to the growth and more coffee shops are delivering compositions of positive transactions,” Niccol said in the video.
At the company's telephone conference, analysts told the company's licensed stores on the University Campus, they saw an increase in sales in the same store, demonstrating that younger consumers are connecting again with the brand.
To bring customers, Starbucks is doubling hospitality. The chain is implementing its “Green Dental Service” program, which emphasizes customer interactions. Executives have said that the program was successfully tested, which led the company to accelerate its deployment.
The chain is also building less new US locations. Uu., Instead of focusing on improving its current coffees. In recent years, Starbucks had eliminated the seats of many of its coffees, citing change to mobile transactions and transmission transactions. But Niccol wants to replace thousands of retired seats as part of a broader effort for their coffees to feel comfortable again.
In China, the second largest market of the company, Starbucks reported a sales growth in the same 2% store for the quarter. The transactions rose 6%, but the average ticket fell. Starbucks has reduced the prices of their drinks in China to better compete with smaller rivals, such as Luckin Coffee.
This quarter marked the first time in a year and a half that the company's business saw increased sales in the same store. Under the pressure of the increase in competition, a weaker economy and the distraction of the US business with difficulties, Starbucks has been wearing the sale of a participation in its China business, which in general could be valued up to $ 10 billion, CNBC reported previously.
“We have received a significant interest from more than 20 interested parties, and we are evaluating options,” Niccol told analysts. “We are still committed to our China business and we want to retain significant participation.”
In the last quarter of the company's fiscal year, Financial Director Cathy Smith said the company is “conservative” on how Starbucks results will be seen in the fourth fiscal quarter compared to the period of the previous year. She cited an environment of uncertain consumption, although she also noticed the emotion of the company for her next innovation and the return of coffee with milk spices.
During the next year, Starbucks plans to invest $ 500 million in labor, including the launch of the “Green apron service” program, according to Smith.
Starbucks pulled his forecast all year in October, shortly after Niccol took the reins of the company and months before Smith joined.
Looking towards fiscal year 2026, Starbucks has great plans. Niccol said the chain will launch the cold protein foam, improved artisanal food options, coconut water drinks, a new Starbucks application and a renewed “renewal rewards program.
The company plans to organize an investor day in the second fiscal quarter of 2026.
