Starbucks Corp's (NASDAQ:SBUX, ETR:SRB) new CEO, Brian Niccol, has announced plans to simplify the company’s "overly complex menu" and review its pricing strategy in a bid to reverse declining sales.
Niccol emphasised the need for a "fundamental change" to improve the customer experience, particularly by streamlining mobile ordering and reducing long queues.
The company reported a 7% drop in global sales for the July-September quarter, with a sharper 14% decline in China.
Earnings fell 25% year-on-year, prompting Starbucks to suspend its financial guidance for 2025 due to ongoing business challenges.
Despite these setbacks, Starbucks raised its quarterly dividend and reaffirmed confidence in its turnaround plans.
Shares fell 3.6% in after-hours trading following the announcement.