Starbucks reported second-quarter earnings after the market closed on Tuesday.
Under CEO Brian Niccol, the company is trying to return to growth.
The chain’s results missed analysts’ expectations, yet Niccol said that progress is coming.
Starbucks wants its baristas to deliver your coffee in under four minutes. Investors are still going to have to wait a bit longer for a good jolt.
The chain’s second-quarter results came in slightly below expectations on Tuesday compared to estimates compiled by Bloomberg. Still, CEO Brian Niccol said that he was optimistic about the company’s turnaround.
“Our financial results don’t yet reflect our progress, but we have real momentum with our ‘Back to Starbucks’ plan,” Niccol said in a video message released with earnings.
Starbucks has made several changes to stores since Niccol became CEO in September. More are on the way, Niccol said, including new furniture in stores and an order sequencing algorithm aimed at getting drinks to customers more efficiently, he added.
Global comparable sales slid 1%. Analysts surveyed by Bloomberg were expecting a decline of 0.59%. In the US, they fell 2% versus the consensus for a decline of 0.26%. Global sales on the same basis in the three months beforehand had dropped 4%.
Net revenue was $8.8 billion, slightly lower than the Bloomberg estimate of $8.83 billion. Shares were also slightly lower in postmarket trading on Tuesday.
Many of the shifts that the chain has made so far, such as requiring store-based Starbucks employees to write messages on to-go cups and requiring a purchase in order for patrons to hang out, are meant to make Starbucks cafés more friendly and comfortable for customers, Niccol has said.
Others are aimed at smoothing operations, such as letting customers add milk to drinks themselves.
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