Starbucks still struggling as coffee giant's same-store sales drop for 6th straight quarter
The company saw overall same-store sales decline 2% for the quarter ended June 29, its sixth straight quarterly contraction. Analysts on average had estimated a 1.19% dip, according to data compiled by LSEG.
CEO Brian Niccol has pushed for a simplified menu, freshly baked food items, cups with handwritten messages and quicker service as he tries to drive a brand reset since taking the helm in last August.
The company saw overall same-store sales decline 2% for the quarter ended June 29, its sixth straight quarterly contraction.
REUTERS
He has also pledged to increase investments in staffing in all 10,000-plus Starbucks-owned US stores by the end of the summer.
'We are making tangible progress in our 'Back to Starbucks' strategy. In the quarter, we made a significant non-recurring investment in our Leadership Experience 2025 and also incurred a discrete tax item, which in the aggregate, negatively impacted Q3 EPS by 11 cents,' CFO Cathy Smith said.
Starbucks CEO Brian Niccol has pledged to increase investments in staffing in all 10,000-plus Starbucks-owned US stores by the end of the summer.
AP
In its largest North America market, same-store sales fell 2%, compared with 2% drop last year.
Customer visits to the coffee chain operator were down an average 0.1% from April to June, data by research firm Placer.ai showed. That was better than a 0.9% drop in the prior three months, suggesting that Niccol's 'Back to Starbucks' initiative and recent menu innovations were beginning to drive a turnaround, Placer.ai said.
The company's shares were down 1% at $92 in volatile extended trading.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
San Francisco Chronicle
an hour ago
- San Francisco Chronicle
S.F. has more workers returning to the office than Los Angeles
San Francisco's return-to-office rate is gaining steam and jumped ahead of Los Angeles and Denver in July for the first time since the pandemic, according to new cell phone data from location tracking firm San Francisco office visits were down 34.2% in July compared to 2019, narrowly ahead of Los Angeles' 34.6% and Denver's 40% declines in the same period, data released Monday showed. San Francisco is still near the bottom for return to work — it's far below nationwide office visits, which were 21.8% below 2019 levels in July. 'It's obviously a far cry from pre-pandemic,' said R.J. Hottovy, head of analytical research at of San Francisco. But the artificial intelligence boom is bolstering the return to office, he said, and driving up apartment and office rents. BART reported higher downtown ridership in June as well. As a result, San Francisco saw the biggest percentage jump in office visits in the past 12 months, 21.6%, among the cities that tracks. In contrast, Los Angeles has seen a weaker return to office in part because of lingering disruption from Hollywood actor and writer strikes in 2024 and 2023, Hottovy said. Denver's low ranking reflects a heavily remote working culture, especially for tech, according to The data uses anonymized cell phone location data to measure foot traffic to offices, with 'predefined criteria specific to employee behavior.' Higher return to office rates measure not only workers coming back, but also population and job growth compared to 2019. San Francisco saw a big population drop of 6.3% during the first year of the pandemic, according to census data, but has been growing again modestly. Downtown events like First Thursday and Unstaged street parties are also helping draw office workers and visitors back, businesses and organizers have said. The leaders for return to office are New York, which was 1.3% above its 2019 level, and Miami, which was only 0.1% below its 2019 level in July. It was the first time New York beat its 2019 numbers on data, which Hottovy attributed in part to large employers like banks requiring five days in the office again. 'I don't think we're ever going to quite get to 100% nationally,' Hottovy said. Despite some companies like Amazon and JPMorgan bringing workers back full-time, many companies have embraced at least a couple days at home each week.
Yahoo
6 hours ago
- Yahoo
Judge dismisses King Soopers' lawsuit against UFCW Local 7
This story was originally published on Grocery Dive. To receive daily news and insights, subscribe to our free daily Grocery Dive newsletter. King Soopers' lawsuit against United Food and Commercial Workers Local 7 was dropped Wednesday when the U.S. District Court for the District of Colorado granted the union's motion to dismiss the case. The Kroger-owned banner originally filed a lawsuit against the UFCW Local 7 in February, claiming the union violated the National Labor Relations Act by forcing the grocer into unlawful multi-union bargaining in the fall of 2024 with other labor groups that don't have ties with the grocer. This legal battle began following unsuccessful collective bargaining negotiations for new contracts and a nearly two-week strike covering approximately 10,000 unionized workers across nearly 80 King Soopers stores in Colorado in early February. In April, UFCW Local 7 filed counterclaims against King Soopers, accusing the grocer of acting in 'bad faith' and violating the 100-day stand-down agreement the two sides came to after the strike. At the time, the union claimed its members suffered damages like potential lost wages and benefits for workers due to the grocery company, according to the counterclaim. UFCW Local 7, which represents approximately 11,000 King Soopers and City Market workers, views this ruling as another victory for grocery workers: 'This lawsuit was just another meritless effort to crush working people and silence their voices, something [the judge] clearly recognized,' union local President Kim Cordova said in an emailed statement. 'Now more than ever, corporate interests are trying to squeeze working families in Colorado and across the nation. Workers in Colorado were forced to strike two different grocery giants this year, each of which sought to slash compensation for workers all the while dramatically increasing prices paid by consumers,' Cordova said in response to the Wednesday ruling. King Soopers did not respond by press time to a request for comment. King Soopers and UFCW Local 7 have 21 days from the date of the judge's decision to amend their pleadings. Recommended Reading King Soopers sues UFCW Local 7 over alleged coercion Sign in to access your portfolio
Yahoo
6 hours ago
- Yahoo
Starbucks Korea bans customers from bringing desktops, printers
Aug. 11 (UPI) -- Signs have been posted at Starbucks locations in South Korea informing customers that they will no longer be allowed to set up desktop computers, printers and multi-outlet power strips at the company's cafes. Starbucks Korea posted the notices at all of its branches in the country, and they also state customers will not be allowed to set up large partitions or leave their belongings unattended at tables for long periods of time. The policy targets a group of customers known colloquially as "cagongjok," a term combining the Korean words for "cafe," "study" and "tribe." It refers to customers who spend several hours studying or doing office work in the businesses. They are also sometimes referred to as "cafe squatters." The move comes after numerous complaints from other customers about people taking up too much space with their office equipment. Several photos showing customers with elaborate setups inside cafes have gone viral online. Starbucks Korea said laptops are still allowed inside the cafes and people are still welcome to work or study inside the businesses provided they do not take up an excessive amount of space.
