CEO Brian Niccol, known for his turnaround successes at Chipotle and Taco Bell, faces significant challenges at Starbucks as evidenced by the company's disappointing earnings. After reorganizing management and focusing on critical issues, Starbucks reported a worrying 2% decline in comparable worldwide sales, the fifth consecutive drop. North America's same-store sales also fell, and sales in China remained flat. The company's revenue did see a slight increase, but per-share earnings plummeted by 50%. Despite Niccol's claims of 'real momentum,' skepticism from customers and investors persists, reflected in a 14% drop in stock price.
CFO Cathy Smith stated, 'While our financial results are far from Starbucks potential, we are working to build back a better business.' This highlights the company's struggle to meet expectations.
Despite CEO Brian Niccol's confidence in witnessing 'real momentum', the stock has fallen 14% this year, indicating that many share concerns over the company's direction.
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