A Starbucks cup on the counter in Manhattan, New York, February 16, 2022.
Carlo Allegri | Reuters
Starbucks Preliminary quarterly results released on Tuesday showed sales fell again.
The company’s preliminary net sales fell 3% to $9.1 billion. The company reported preliminary adjusted earnings of 80 cents per share.
Analysts surveyed by LSEG expected the company’s fourth-quarter earnings per share to be $1.03 on revenue of $9.38 billion.
Starbucks same-store sales fell for the third consecutive quarter. Globally, its same-store sales fell 7%.
Chief Executive Brian Niccol took over the helm of the coffee giant nearly two months ago after two consecutive quarters of declining same-store sales.
His goal is to reverse slowing demand for Starbucks beverages, particularly in its two largest markets: the United States and China. In the United States, the chain has been losing occasional customers who choose to save money instead of spending it on macchiatos and refreshing drinks. Starbucks’ business in China has also struggled to recover since the outbreak, with the rise of cheaper local rivals such as Luckin Coffee and more cautious consumers denting sales in recent months.
Nicole joins Starbucks after six years as CEO Chipotle; During his tenure at the fast-casual chain, he led the company’s turnaround following the foodborne illness crisis, invested in its digital business and built it into the industry’s top performer, even during the pandemic in this way.
To stem Starbucks’ sales decline, Nicholl plans to turn first to the company’s struggling U.S. operations. In an open letter posted during his first week on the job, he said he planned to focus on improving four areas: the barista experience, morning service, cafes and company branding.
Nicol has also been restructuring the company’s top executives. On Friday, the company announced that former Chipotle executive Tressie Lieberman will join Starbucks in the newly created position of global chief brand officer. Last month, Starbucks said its North American chief executive, Michael Conway, would retire after just five months on the job; Nicolle’s predecessor, Laxman Narasimhan, resigned in August after Conway He was appointed before stepping down.
Starbucks shares were up 1% this year as of Tuesday’s close. The company has a market capitalization of over $109 billion.
The company is expected to report fiscal fourth-quarter earnings on Oct. 30 after the market close.
This story is developing. Please check back for updates.
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