By Connor Hart
Starbucks reported fewer transactions across its coffeehouses in its fiscal second quarter, resulting in lower profit, though executives said efforts to bring customers back to cafes are bearing fruit.
The Seattle-based chain on Tuesday posted a profit of $384.2 million, or 34 cents a share, compared with a profit of $772.4 million, or 68 cents a share, a year earlier.
Adjusted per-share earnings of 41 cents missed the 49 cents that analysts surveyed by FactSet expected.
Revenue increased 2% to $8.76 billion, just below the $8.83 billion that analysts modeled.
Global same-store sales, which account for store openings and closings, fell 1%, marking the fifth consecutive quarterly decline. Wall Street expected comparable sales to slip 0.8% during the quarter.
Chief Executive Brian Niccol said he is confident that the company's "Back to Starbucks" plan will turn around the business.
"We are on track and if anything, I see more opportunity than I imagined," he said.
Since assuming the top role in September, Niccol has implemented a number of turnaround actions, including slimming down menus, reducing discounts and restricting bathrooms to paying customers. The company is currently implementing new technology pilots in U.S. stores that are helping speed up orders, The Wall Street Journal reported earlier on Tuesday.
Shares fell 1.3% in after-hours trading to $83.75.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
April 29, 2025 16:20 ET (20:20 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.