Starbucks Faces Fourth Consecutive Quarterly Sales Decline as Turnaround Efforts Continue

CEO Brian Niccol's strategy to revitalize the coffee giant includes operational changes, but analysts predict more short-term challenges ahead.

Starbucks is expected to report a 4.6% drop in comparable store sales and a 26% decline in profit for Q1 2025, marking its fourth consecutive quarter of declines.
CEO Brian Niccol, four months into his role, has introduced measures such as reducing wait times, restructuring management, and enforcing a purchase requirement for restroom and Wi-Fi access.
Analysts remain cautious about near-term results but see potential for a long-term recovery, with some projecting sustainable double-digit EPS growth by fiscal 2026.
Starbucks has paused price hikes for 2025 despite rising coffee costs, a move that could pressure profit margins as the company prioritizes customer experience.
Since Niccol's appointment in August 2024, Starbucks shares have risen 28%, signaling investor optimism about his turnaround strategy despite ongoing challenges.