New York CNN —Starbucks is brewing a turnaround plan that involves speedier service and expanding the number of promotions after its most recent quarter was “disappointing,” in the words of its own chief executive.
“Let me be clear from the beginning, our performance this quarter was disappointing,” said CEO Laxman Narasimhan on the earnings call.
Same-store sales in the United States fell 3%, a sharp reversal from the same quarter a year ago, when they grew 12%.
In China, the chain’s second-largest market, sales fell a staggering 11%, with the company blaming competition from “value players” in the country.
Starbucks is now forecasting revenue to grow in the low single digits, a steep decline from its previous forecast of 7% to 10%.
Persons:
”, Laxman Narasimhan, ” Narasimhan, “ Headwinds, Narasimhan
Organizations:
New, New York CNN, Starbucks, East, Alshaya
Locations:
New York, United States, China, Gaza