Starbucks Corporation (NASDAQ: SBUX) shares tumbled 6.92% in pre-market trading on Wednesday following the release of its fiscal second-quarter earnings report that fell short of Wall Street expectations. The coffee giant's results highlighted ongoing challenges in its turnaround efforts amid a tough consumer environment and global economic uncertainties.

For the quarter ended March 30, 2025, Starbucks reported adjusted earnings per share of $0.41, significantly missing the analyst consensus estimate of $0.49. Revenue came in at $8.76 billion, slightly below the expected $8.83 billion. The company's global comparable store sales declined 1%, driven by a 2% drop in comparable transactions, partially offset by a 1% increase in average ticket.

CEO Brian Niccol acknowledged the disappointing results but expressed confidence in the company's "Back to Starbucks" turnaround strategy. "My optimism has turned into confidence that our 'Back to Starbucks' plan is the right strategy to turn the business around and to unlock opportunities ahead," Niccol stated. However, he also noted that "our financial results don't yet reflect our progress, but we have real momentum with our initiatives."

The company is grappling with several headwinds, including weakened consumer demand in key markets and the impact of recent trade tensions. In North America, comparable store sales fell 1%, while U.S. comparable store sales declined 2%. The international segment saw a 2% increase in comparable store sales, with China's performance remaining flat. Starbucks is also facing challenges from rising coffee bean prices and potential impacts from tariffs, though it stated it is taking actions to mitigate these risks.

As Starbucks works to navigate these challenges and execute its turnaround strategy, investors will be closely watching for signs of improvement in the coming quarters. The significant stock price drop reflects market concerns about the pace of the company's recovery and its ability to return to consistent growth in an increasingly competitive and uncertain global market.