Starbucks says that as sales decline continues to decline, the turnaround is getting more and more

(Bloomberg) – Starbucks’ quarterly sales were slightly higher than expected, highlighting how hard it would take for the coffee chain to recover the lost ground.

Same-store sales fell 1% in the quarter ended March 30, well below the average estimates of analysts surveyed by Bloomberg, according to a statement Tuesday. EPS missed expectations, too.

Stocks fell in extended trading in New York.

Starbucks is working to restore price increases, long-term lines and resistance to sales growth related to the company’s stance on the Middle East War. The company also competes with Americans for the increasingly bleaker economy, which also leads to weaker results for Mexico’s Grill Inc. Chipotle.

Led by CEO Brian Niccol, which began in September, Starbucks began an overhaul of its cafe to make them more popular. It also speeds up service by adding more workers to the store and rolling out algorithms to prioritize which orders to prepare and other initiatives.

“Our financial results have not yet reflected our progress, but our Back to Starbucks program has real motivation,” Nicole said in a comment along with the earnings report.

Analysts lowered expectations for same-store sales ahead of earnings reports, according to data compiled by Bloomberg. Third-party sources including Placer.ai’s mobility data indicate that in the first three months of 2025, visits to Starbucks slipped from a year ago. Analysts also considered how the costs associated with company restructuring will make profits, as well as expenses related to turnover efforts.

Comparable sales results represent the company’s improvement in the previous quarter when the measure fell by 4%. This is the fifth consecutive decline.

China’s comparable sales volume is flat, better than expected, and significantly improved from the previous quarter.

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