Starbucks Reports Weak Earnings as It Tries to Woo Back Customers
Published On Jan 28, 2025, 7:32 PM
Starbucks has faced challenges with declining customer traffic, resulting in a 4% drop in same-store sales globally for the first quarter of fiscal year 2025. Although revenue remained flat at $9.4 billion, net income fell nearly 23% due to increased investments in staff wages and stopping extra charges on nondairy products. CEO Brian Niccol is aiming to improve service speed to regain customer satisfaction, but the company still struggles with customer engagement, particularly in the U.S. and China, where sales have decreased significantly.
Stock Forecasts
SBUX
Negative
Starbucks is currently trying to recover from significant sales declines and is investing in operations to improve customer experience, but these efforts are yet to show substantial results. Short-term prognosis may remain cautious as the company tackles service speed and customer loyalty issues amidst increasing operational costs.
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