Starbucks Sales Decline, New CEO Plans Turnaround

Starbucks has reported a significant decline in sales, with a 7% drop in global same-store sales for the fourth quarter, including a 6% decrease in the US and a 14% drop in China driven by reduced foot traffic and increased competition. New CEO Brian Niccol, who previously led Chipotle, is spearheading a turnaround strategy that includes simplifying the menu, adjusting pricing, and improving customer experience to revive the company's growth. Despite efforts like promotions and mobile app deals, they have not succeeded in reversing the downward trend in customer transactions. The company also suspended its 2025 fiscal guidance to allow time for strategic reassessment and turnaround implementation. Starbucks shares have responded negatively to the news, falling in both premarket and after-market trading. The full financial results for the fourth quarter are scheduled for release on October 30, 2024.