Starbucks released preliminary quarterly results late Tuesday that showed another drop in sales. That's the report CNBC. CEO Brian Niccol announced that the company must fundamentally change its strategy to achieve growth again. He promised to provide more details in an earnings call planned for October 30.
Sales in China fell very sharply
According to CNBC, sales at its North American stores fell 7 percent, with customer traffic down 10 percent. In the Chinasecond largest market, sales fell 14 percent. The country is in the midst of an economic crisis.
Despite the weak quarter, Starbucks increased its dividend from 57 cents to 61 cents per share to boost investor confidence.
Starbucks drops 2025 outlook, shares fall
According to the report, Starbucks postponed its forecast for fiscal year 2025 considering the current business situation. This weighed on Starbucks shares in after-hours trading.
According to data from Statesman Starbucks achieves sales of approximately 36 billion dollars (33 billion euros) worldwide by 2023. The group serves customers in 38,038 branches. Starbucks Coffee Deutschland GmbH currently operates around 150 branches.