Starbucks Turnaround Is ‘Ahead of Schedule’—But at What Cost?

Starbucks Corporation’s latest quarterly results underscored both the urgency of its transformation efforts and the early signs of progress in key areas. For the fiscal third quarter, the company reported net revenue of $9.5 billion, yet same-store sales fell 2 percent globally—worse than the 1.5 percent decline analysts had anticipated—and earnings per share of $0.50 trailed the $0.65 consensus. In the United States, comparable sales also dipped 2 percent, reflecting the continued impact of a year-and-a-half streak of domestic store declines. By contrast, the China business—now the company’s second-largest market—returned to growth, with same-store sales rising 2 percent and transaction volumes climbing 6 percent after targeted price cuts on teabased drinks and the introduction of sugar-free options.