Starbucks misses earnings estimates as turnaround continues

Same-store sales fell for the fifth straight quarter.

Transcript

00:00Despite what CEO Brian Nichols sees as momentum in Starbucks' turnaround plan, the company

00:04had a disappointing first quarter.

00:06In its most recent report, Starbucks revealed it missed on both earnings and revenue estimates.

00:11Same store sales also declined again.

00:14Of its Q1 report, Nichols said,

00:15"...our financial results don't yet reflect our progress, but we have real momentum with

00:19our Back to Starbucks plan.

00:21We're testing and learning at speed, and we're seeing changes in our coffeehouses."

00:25Since taking over in August 2024, Nichols has implemented a host of changes to try and

00:29win back customers.

00:30Earlier this month, the company announced a new dress code for baristas.

00:34And in an effort to cut costs, Starbucks also said it would cut roughly 30% of its menu and

00:39eliminate 1,100 corporate positions.

00:41High prices, long wait times, and employee backlash have all factored into a decline in sales for

00:46five straight quarters.

00:48That'll do it for your daily briefing.

00:49From New York City, I'm Kelsea Barbario with The Street.