Starbucks Reports Better-Than-Expected Earnings as CEO Implements Turnaround Strategy

The coffee giant's new 'Back to Starbucks' initiative shows early signs of reshaping store experiences and improving performance under CEO Brian Niccol.

Starbucks exceeded Wall Street expectations for Q4 2024, reporting $780 million in net income, though this was a 23% decline from the previous year.
Same-store sales dropped by 4%, a smaller decline than the 5.5% analysts had projected, boosting investor confidence and causing a 4% rise in after-hours trading.
CEO Brian Niccol, who joined in September, launched the 'Back to Starbucks' initiative, focusing on creating a more welcoming store atmosphere with measures like reintroducing mugs and handwritten names on cups.
The new strategy includes a no-loitering policy and restricted bathroom access for non-paying customers, aiming to reduce crowding and improve customer experiences.
Niccol also announced an executive shake-up, bringing in former colleagues from Yum! Brands to key roles, while eliminating two existing executive positions to streamline operations.