Coffee chain Starbucks (SBUX) has missed Wall Street’s forecasts with its latest financial results as the company’s global sales declined for a third consecutive quarter.
Seattle-based Starbucks posted earnings per share (EPS) of $0.80 U.S., which fell far short of the $1.02 U.S. consensus expectation of analysts.
Revenue for the year’s third quarter totaled $9.07 billion U.S., which was less than the $9.37 billion U.S. forecast on Wall Street. Sales were down 3% from a year ago.
Management blamed the poor results on declining sales in the U.S. and China, its two biggest markets. Same-store sales were particularly weak.
Global same-store sales decreased 7%, while foot traffic to its stores worldwide fell 8% from a year ago.
The company’s U.S. restaurants reported same-store sales declines of 6%, while in China, the company’s same-store sales plunged 14%.
Despite the bad results, Starbucks’ stock is down less than 1%, likely because the company released preliminary quarterly results on Oct. 22 and suspended its 2025 outlook.
These were the first quarterly results under new chief executive (CEO) Brian Niccol, who joined the company on Sept. 9 of this year.
Niccol has taken several steps to turn things around at Starbucks, including ending discount prices and focusing more on advertising heading into the year-end holidays.
Starbucks’ stock has gained 4% this year and currently trades at $97.32 U.S. per share.
