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Coffee giant Starbucks (SBUX) beat top and bottom line estimates for its fourth quarter — posting adjusted earnings of $0.69 per share and revenue of $9.4 billion — while seeing narrower-than-expected declines in same-store sales. The first full quarter with new CEO Brian Niccol at the helm, BTIG managing director and restaurant analyst Peter Saleh described this as the "very early innings of this turnaround story" for Starbucks.
Starbucks CEO Brian Niccol sits down with Yahoo Finance executive editor Brian Sozzi and senior reporter Brooke DiPalma for a conversation about the company's restructuring plans, which includes layoffs and scaling back its menu by 30%.
"We're working through that. And... you never love the idea of having to restructure because it impacts... people. And that's at the heart of our business," Niccol tells Yahoo Finance. "But in the end, what we know we have to do is we have to have a support center that is structured such that we can have accountability, clarity of work so that we can support our stores and our partners in the green apron in the stores effectively and efficiently."
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Starbucks has since backed down from a $4 billion cost savings goal for 2028, as Niccol seeks to find more organic routes of efficiency while ""build[ing] stores smartly" in under-penetrated markets or regions within the US.
Niccol goes on to answer questions about Starbucks' mobile ordering app and how the brand seeks to foster a sense of safety and security at its locations.
"Look, that's a number one priority of ours. And if we do need to have additional security, we'll do it. You know, full stop," Niccol explains. "[Our partners] need to know that they're safe, and they need to know that we're going to be right there with them... And when we get the feedback, my commitment is we take action so that we support the partner to have a safe environment so they can do their job with excellence and give our customers a great experience."
Read up on Brooke DiPalma's coverage of how Niccol is bringing new energy to the C-suite at Starbucks.
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This post was written by Luke Carberry Mogan.