Starbucks Reports 1% Global Sales Decline Amid Economic Uncertainty

Starbucks reported disappointing fiscal second quarter results, with adjusted earnings per share of $0.41 and revenue of $8.76 billion, both falling short of analyst expectations. Global same-store sales declined by 1%, a steeper drop than anticipated, as U.S. consumers cut back on premium coffee amid economic uncertainty, and competition from cheaper local brands weighed on sales in China. North American comparable store sales also dropped by 1%, while sales in China remained flat, pressured by a decline in average ticket size. Despite these challenges, international sales outperformed forecasts, rising by 2%. CEO Brian Niccol expressed confidence in the company's "Back to Starbucks" turnaround strategy, noting ongoing efforts such as menu streamlining and new technology pilots to improve customer experience. The results underscore the financial challenges Starbucks faces in its key markets, even as it seeks to leverage growth opportunities internationally.