January 28, 2025
Starbucks ( SBUX ) reported fiscal first-quarter results that topped analysts’ expectations, sending shares higher in extended trading Tuesday.
The coffee giant saw net sales fall 0.3% year-over-year to $9.4 billion, above the analyst consensus compiled by Visible Alpha. Earnings of $780.8 million, or 69 cents per share, declined from $1.02 billion, or 90 cents per share, a year earlier but topped Wall Street projections. Global same-store sales fell 4%, a narrower decline than the 5% drop expected by analysts.
“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,” new CEO Brian Niccol said in a release.
Niccol, who took the reins in September, has implemented a turnaround strategy known as “ Back to Starbucks ,” which has included the reinstatement of a policy requiring customers to make a purchase if they want to spend time in the company’s cafes or use its bathrooms.
Starbucks did not provide an outlook for 2025, after saying last fall that it wanted to “complete an assessment of the business” under Niccol, before issuing guidance.
Shares of Starbucks rose close to 4% in extended trading Tuesday following the release. They were up 10% for the year so far through Tuesday's close.
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