Starbucks revenue falls as same-store sales drop

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.