- Starbucks reported first-quarter earnings late Tuesday.
- The results beat expectations, although comparable sales still fell.
- New Starbucks CEO Brian Niccol has been making changes at the chain.
Starbucks has turned to a new CEO and a new strategy to stop sales tumbling. Although it’s early days, it looks like the first steps have added a small caffeine boost to the company.
Comparable sales fell 4% for the quarter ended December 29. While still a decline, analysts surveyed by Bloomberg were expecting a drop of 5.3%. Net revenue reached $9.4 billion, also slightly beating estimates.
Shares of Starbucks rose as much as 4% in after-hours trading on Tuesday on the results.
Starbucks is in the middle of a turnaround effort. Sales have fallen in recent quarters, and store workers have told Business Insider that they are often understaffed and struggle to make drinks and food in a timely manner.
CEO Brian Niccol, who joined the company from Chipotle in September, has said that he wants to cut wait times for orders to four minutes or less while also making Starbucks stores places where customers want to hang out.
“While we’re only one quarter into our turnaround, we’re moving quickly to act on the ‘Back to Starbucks’ efforts and we’ve seen a positive response,” Niccol said Tuesday.
The changes so far include limiting bathroom access and free water to paying customers, as well as asking baristas to add handwritten notes to to-go cups.
Do you work at Starbucks and have a story idea to share? Reach out to this reporter at abitter@businessinsider.com.
Starbucks’ Turnaround Plan Seems to Be Working
After facing some challenges in recent years, Starbucks seems to be back on track with its turnaround plan. The coffee giant has been focusing on several key initiatives to revitalize its business and regain its competitive edge in the market.
One of the main strategies Starbucks has been implementing is streamlining its operations and improving efficiency. The company has been closing underperforming stores, optimizing its store layout, and investing in new technology to enhance the customer experience.
Starbucks has also been expanding its menu offerings and introducing new products to attract more customers. The company recently launched its highly anticipated plant-based menu, which has received positive feedback from both vegans and non-vegans alike.
Additionally, Starbucks has been ramping up its digital efforts to drive more sales through its mobile app and loyalty program. The company has been offering personalized promotions and rewards to incentivize customers to visit more frequently and spend more money.
Overall, Starbucks’ turnaround plan seems to be paying off, as the company has reported strong financial results in recent quarters. With its focus on innovation, efficiency, and customer experience, Starbucks is well-positioned to continue its growth trajectory in the years ahead.
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Starbucks, Turnaround Plan, Success, Growth, Coffee Industry, Business Strategy, Financial Performance, Marketing Strategy, Customer Experience, Brand Reputation
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