Starbucks Corporation (NASDAQ: SBUX) saw its shares plummet 6.92% in after-hours trading on Wednesday following the release of its fiscal second-quarter earnings report that fell short of analyst 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.

Notably, Starbucks' performance in its key North American market was particularly weak, with U.S. comparable store sales declining 2%, driven by a 4% decrease in transactions. This marks the fifth consecutive quarter of declining same-store sales for the company, indicating persistent challenges in attracting and retaining customers.

Despite the disappointing results, Starbucks CEO Brian Niccol 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. He added that while financial results do not yet reflect the progress made, the company is seeing "real momentum" with its initiatives.

However, Starbucks faces several headwinds, including weakened consumer demand, rising recession fears, and global trade uncertainties. The company acknowledged it is taking actions to mitigate potential financial impacts from tariffs, including diversifying and redirecting coffee shipments. These challenges, combined with the slower-than-expected progress in the turnaround efforts, have likely contributed to investor concerns and the subsequent stock price decline.

As Starbucks continues to implement various measures to improve its performance, including simplifying its menu, enhancing order processing, and creating a warmer atmosphere in its stores, investors will be closely watching for signs of improvement in the coming quarters. The significant stock price drop following the earnings release 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.