Starbucks CEO Brian Niccol’s efforts to revitalize the brand showed progress despite missing estimates for quarterly global comparable sales and profit due to inflation and economic uncertainty affecting US demand. Total same-store sales dropped by 1% in the second quarter, contrasting with analysts’ expectations of a 0.26% decline. Niccol emphasized improvements in service speed and marketing strategies. However, challenges persist as consumers remain cautious due to economic factors. North America same-store sales fell 1%, while international sales improved slightly, with China showing flat results after consecutive declines. Gross margin decreased by 590 basis points, and adjusted earnings per share were lower than expected. Starbucks is focusing on broader marketing rather than relying heavily on its loyalty program.
— new from New York Post
