Starbucks reported its first quarterly sales increase in over a year, with revenue rising 2% to $8.76 billion in the January-March period. However, the coffee giant’s turnaround effort remains incomplete, with net income dropping 50% to $384 million and adjusted earnings falling nearly 40%.
Chairman and CEO Brian Niccol said that some investments will take time to yield material returns, but the company is making progress. Optimizing staffing levels and simplifying menus have improved store operations and service.
While international same-store sales increased 2%, U.S. same-store sales fell 2%. Starbucks’ shares declined less than 1% in after-hours trading on Tuesday.
The company’s fiscal second quarter results missed Wall Street’s expectations, with analysts forecasting $8.83 billion in revenue. Despite this, Niccol remains optimistic about the company’s turnaround efforts and believes they are moving quickly towards a recovery.
Source: https://www.wral.com/story/starbucks-says-turnaround-is-on-track-but-quarterly-earnings-and-sales-fall-short/21983962