"It turns out that it was not a good quarter at all. Compared to its growth years, there was no story for new CEO Brian Niccol to tell. Same-store sales did not fall, but they did not rise. Since they dropped in the same quarter a year ago, being flat was like being down. Niccol said he would begin his tenure working on results in the United States. While global same-store sales were up 1%, U.S. same-store sales were flat."
"Earnings were ugly, dropping from $0.80 to $0.12 per share. Revenue rose 5% to $9.57 billion. The earnings report briefly mentions that Starbucks closed 627 stores, 90% of which were in North America. The global total hit 40,990. The major reason the figures were disappointing is that Niccol had done so much to improve them. He made U.S. uniforms uniform. He cut white-collar workers. He reduced the number of menu items to increase the speed of customer service (though there is no firm evidence it worked)."
U.S. same-store sales were flat while global comparable sales rose 1%. Earnings fell from $0.80 to $0.12 per share, while revenue increased 5% to $9.57 billion. Starbucks closed 627 stores, 90% in North America, bringing the global store count to 40,990. CEO Brian Niccol implemented uniform uniforms, white-collar cuts, menu reductions to speed service, store redesigns, and television promotion as part of a 'Back to Starbucks' strategy. The stock is down 14% over the past year while the broader market is up 18%. Flat U.S. comps and sharply lower earnings indicate limited turnaround progress.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]