Same-store sales fell for the fifth straight quarter.
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00:00Despite what CEO Brian Nichols sees as momentum in Starbucks' turnaround plan, the company
00:04had a disappointing first quarter.
00:06In its most recent report, Starbucks revealed it missed on both earnings and revenue estimates.
00:11Same store sales also declined again.
00:14Of its Q1 report, Nichols said,
00:15"...our financial results don't yet reflect our progress, but we have real momentum with
00:19our Back to Starbucks plan.
00:21We're testing and learning at speed, and we're seeing changes in our coffeehouses."
00:25Since taking over in August 2024, Nichols has implemented a host of changes to try and
00:29win back customers.
00:30Earlier this month, the company announced a new dress code for baristas.
00:34And in an effort to cut costs, Starbucks also said it would cut roughly 30% of its menu and
00:39eliminate 1,100 corporate positions.
00:41High prices, long wait times, and employee backlash have all factored into a decline in sales for
00:46five straight quarters.
00:48That'll do it for your daily briefing.
00:49From New York City, I'm Kelsea Barbario with The Street.