Starbucks reported better-than-expected first-quarter results, though sales still fell slightly. The company, which has faced challenges in recent quarters, now features a new CEO, Brian Niccol, aiming to reverse declining sales.Comparable sales dropped 4%, lower than the 5.3% decline analysts expected. Despite this, net revenue reached $9.4 billion, beating estimates.
New Starbucks CEO Brian Niccol is rolling out strategic changes, including simplifying the menu and using new technology for mobile orders. He’s also introduced digital menu boards in stores to improve customer experiences. While he’s stepping back from a previous $4 billion savings goal by 2028, efficiency improvements remain a focus.
Niccol has emphasized reducing wait times and creating a more inviting store atmosphere. Changes so far include limiting bathroom access for paying customers and adding handwritten notes on to-go cups. The company’s shares dipped after the earnings report but have since rebounded slightly.
Niccol hinted at quick progress toward his turnaround goals, noting a positive response from these initial steps.
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Source: https://www.businessinsider.com/starbucks-turnaround-plan-sales-seems-working-2025-1