Tue Jan 28 21:00:00 UTC 2025: ## Starbucks Beats Earnings Expectations Despite Continued Same-Store Sales Decline
**Seattle, WA** – Starbucks reported its fiscal first-quarter earnings on Tuesday, revealing a beat on Wall Street expectations despite a continued decline in same-store sales for the fourth consecutive quarter. The coffee giant’s net income was $780.8 million, or 69 cents per share, down from the previous year but exceeding analyst predictions. Net sales remained flat at $9.4 billion.
While overall same-store sales fell 4%, driven by a 6% drop in customer traffic, this was better than the anticipated 5.5% decline. The U.S. saw a 4% decrease in same-store sales, with an 8% drop in customer traffic, while international locations also underperformed but still outpaced expectations. China, Starbucks’ second-largest market, experienced a 6% decline in same-store sales, partly attributed to increased discounting to compete with lower-priced rivals.
CEO Brian Niccol, who launched a turnaround plan last quarter, expressed confidence in the company’s progress, stating, “While we have room for improvement, we’re making progress as planned, and have confidence we’re on the right track.” The plan focuses on returning to Starbucks’ core values, emphasizing coffee quality and customer experience. Despite the challenges, the better-than-expected earnings suggest the turnaround efforts are starting to show results.
First Piper 