Starbucks dipped 0.2% after issuing preliminary quarterly results that showed another drop in sales.
The coffee chain reported a 3% decline in sales for the quarter as it struggled with declining demand. New CEO Brian Niccol, who recently left Chipotle Mexican Grill, said the company’s “Back to Starbucks” plan will focus on returning to growth.
Niccol plans to reveal more details during the Oct. 30 earnings call. He has already started refocusing marketing, simplifying the menu, and addressing pricing issues. The company also announced it will suspend guidance for fiscal year 2025.
Same-store sales fell by 7%, marking the steepest drop since the pandemic. Starbucks attributed the weak performance to reduced demand in North America.
Despite these challenges, the company raised its dividend from 57 cents to 61 cents per share.
