The Starbucks logo is seen on a cup at one of its cafes on April 26, 2024.
Jakub Porzycki/ | Nurphoto | Getty Images
Starbucks on Tuesday reported that its same-store sales slid for the fourth consecutive quarter, but the company’s quarterly earnings and revenue beat Wall Street’s expectations.
The coffee giant kicked off a turnaround plan last quarter in the hopes of reviving its U.S. business, which has slumped over the last year.
“While we have room for improvement, we’re making progress as planned, and have confidence we’re on the right track,” CEO Brian Niccol said in a video released on the company’s website on Tuesday afternoon.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: 69 cents vs. 67 cents expected
- Revenue: $9.4 billion vs. $9.31 billion expected
The company’s net sales of $9.4 billion were unchanged from a year earlier.
The company’s same-store sales fell 4%, fueled by a 6% decline in traffic to its stores. Wall Street was expecting a steeper drop of 5.5%, according to StreetAccount estimates. Both its U.S. and international locations outperformed expectations.
U.S. same-store sales slid 4% as traffic to its cafes fell 8%. Under Niccol, who took the reins in September, the company has been trying to turn around its U.S. business by getting “back to Starbucks” and returning its focus to coffee and the customer experience.
Outside of its home market, same-store sales also declined 4%.
Starbucks’ same-store sales in China, its second-largest market, fell 6%, fueled by a 4% in average ticket. The coffee giant has been leaning into discounts in China to compete with rivals that have much lower prices, like Luckin Coffee.