Starbucks cups are pictured on a counter in Manhattan, New York, on February 16, 2022.
Carlo Allegri | Reuters
Starbucks on Tuesday released preliminary quarterly results, showing its sales fell again.
The company’s preliminary net sales fell 3% to $9.1 billion. It reported preliminary adjusted earnings per share of 80 cents.
Analysts surveyed by LSEG expect the company to report fiscal fourth-quarter earnings per share of $1.03 and revenue of $9.38 billion.
Starbucks same-store sales fell for the third straight quarter. Worldwide, its same-store sales fell 7%.
Nearly two months ago, CEO Brian Niccol takes the helm of the coffee giant after two quarters of declining same-store sales.
He aims to reverse slowing demand for Starbucks drinks, especially in its two largest markets: the United States and China. In the US, the chain is gradually losing occasional customers who have chosen to save money instead of spending on macchiatos and Refreshers. Starbucks’ business in China has also been struggling to recover since the pandemic, and the rise of cheaper local rivals such as Luckin Coffee and more cautious consumers have dented sales. goods in recent months.
Niccol joins Starbucks after six years as its CEO Chipotle; During his tenure at the fast-food chain, he led the company through a period of change following the foodborne illness crisis, investing in its digital business and transforming the company into a new one. into an industry-leading performer, even during the pandemic.
To limit the decline in Starbucks sales, Niccol plans to turn first to the company’s struggling US business. In an open letter published during his first week on the job, he said he plans to focus on four areas that need improvement: barista experience, morning service, cafes and company brand.
Niccol is also reshuffling the company’s executive ranks. On Friday, the company announced former Chipotle executive Tressie Lieberman, will join Starbucks as global brand director, a newly created position. And last month, Starbucks said North America CEO Michael Conway would retire after just five months in the role; Niccol’s predecessor Laxman Narasimhan appointed Conway before he was sacked in August.
Starbucks shares were up 1% this year, as of Tuesday’s close. The company has a market capitalization of more than $109 billion.
The company is expected to report its fiscal fourth-quarter earnings after the bell on October 30.
This story is developing. Please check back for updates.
