Starbucks CEO Brian Niccol just put a positive spin on lagging sales. His pep talk may explain why the stock is up
The coffee chain reported its sixth quarter in a row of declining same-store sales. These numbers dropped 2% globally, though most stores outside North America reported flat sales. In the United States, a 2% drop was better than the 2.5% decline that Wall Street had predicted, according to consensus estimates cited by CNBC. In China, Starbucks's second largest market, comparable store sales increased by 2% due to a rise in transactions.
'While our financial results don't yet reflect all the progress we've made, the signs are clear — we're gaining momentum,' Brian Niccol, chairman and CEO of Starbucks, stated in an accompanying video.
Niccol, who joined Starbucks as chief executive in September of last year, previously orchestrated a turnaround at Chipotle Mexican Grill, following a food safety crisis at the burrito chain.
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