According to CEO Laxman Narasimhan, a ‘challenging consumer environment’ is weighing on sales at Starbucks cafes
Starbucks’ quarterly revenue missed analysts’ expectations in the US and international cafes as it struggled with reduced demand.
The coffee giant also reported underwhelming fiscal third-quarter earnings.
Starbucks’ domestic same-store sales dropped 2%, while global sales dropped 3%. Still, the results were not as negative as investors had anticipated. The company’s shares increased by over 5% in after-hours trading.
According to CEO Laxman Narasimhan, a “challenging consumer environment” is weighing on sales at its cafes.