The coffee giant's sales are declining in the United States and China.
Starbucks shares fell after the close on Wall Street Tuesday evening, after the company released preliminary quarterly numbers that showed sales continuing to decline. This is what CNBC wrote.
The stock was down 4.37 percent at around 22.20.
New CEO Brian Nicol, who took office about two months ago, faces the challenge of reversing the negative trend. Starbucks has seen sales decline in its two largest markets, the United States and China, in recent quarters.
In the United States, the coffee chain lost its “accidental customers”, who chose to save money rather than spend it on Starbucks coffee products. In China, the company has struggled to recover from the pandemic, and now faces increasing competition from cheaper Chinese alternatives such as Luckin Coffee, according to the news agency.
Nicol, who previously led a successful turnaround at Chipotle, has already begun making changes at Starbucks. He plans to focus on four areas to improve the American business: the barista experience, morning service, cafés, and corporate branding, CNBC wrote.
Starbucks reports its fourth-quarter accounting period numbers on October 30.
Starbucks shares are up 1% so far this year. The company's market value is more than $109 billion.
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