Starbucks shares fall 7% as quarterly profit drops by half
Starbucks' share price fell 7% in pre-market trading on Tuesday after the coffee giant reported a 50.3% year-on-year decline in net profit for the first quarter, Anadolu reports.
The company also reported a 45.3% drop in operating income, according to its latest financial statement.
“While our financial results are far from Starbucks’ potential, we are working to build back a better business,” said Chief Financial Officer Cathy Smith, acknowledging the significant shortfall.
CEO Brian Niccol echoed that sentiment, emphasizing that while the numbers do not yet reflect it, changes to its operations are underway.
“We’re testing and learning at speed, and we’re seeing changes in our coffeehouses,” he said.
Earlier it was reported that Amazon and Starbucks workers were striking across U.S. over labor contract disputes.