Starbucks reported fiscal first-quarter earnings and revenue that surpassed Wall Street's expectations, despite a 4% drop in same-store sales. Same-store sales in the U.S. fell 4%, driven by an 8% decline in foot traffic. Same-store sales in China dropped 6%, driven by a 4% decline in average tickets, as the company relied on discounts to compete with lower-priced rivals. CEO Brian Niccol highlighted early progress in Starbucks’ turnaround efforts. Niccol cited a “positive response” to these changes and reaffirmed long-term plans to expand and renovate stores while optimizing barista workflows.
