Business

Starbucks shares tumble after warning of drop in sales, profit

October 22, 2024

Starbucks said Tuesday it was suspending its annual forecasts as new CEO Brian Niccol looks to turn around the coffee giant struggling to stem easing customer demand.

Shares of the company were down about 6% in after-hours trading as the coffee chain also expects to report a decline in quarterly sales and profit.

Niccol took over from Laxman Narasimhan on Sept. 9 at a time when the coffee chain struggled with tackling weakness in two top markets, the US and China.

CEO Brian Niccol, who took over last month, is looking to turn around the coffee giant struggling to stem easing customer demand. AP

Customers at a Starbucks — Shares fell after hours as the coffee chain also expects to report a decline in quarterly sales and profit. AFP via Getty Images

“Despite our heightened investments, we were unable to change the trajectory of our traffic decline, resulting in pressures in both our top-line and bottom-line,” Chief Financial Officer Rachel Ruggeri said.

“We are developing a plan to turn around our business, but it will take time.”

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Wesley Scott

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