Starbucks actions are sliding when CEO Brian Niccol calls “Decrebedors” earnings

Starbucks (Also numassa) Actions fell 5.7% Wednesday after coffee giant Second quarter results report disappointed Wall Street and Locates a shadow on the plan of his CEO to turn the company around.

Sales of comparable stores in the US, a metric that includes the results of open stores for more than a year, fell to the fifth consecutive quarter, sinking by 2%, as consumers sought cheaper alternatives in rivals like Dunkin’s and McDonald’s (MCD)). Wall Street analysts expected a more modest descent of 0.3% of the results on Tuesday.

Starbucks falling store sales are the result of less customers who visit their stores to buy drinks, although those who still frequent their stores spend more money. The transactions fell 4% compared to the previous year, while the average size of the ticket or the amount of dollar spent in each transaction, increased by 3% in the United States.

More information on Starbucks actions and current market action.

Investors have also focused on the company’s results in China after four consecutive comparable sales quarters decrease as competition warms up in the country.

In China, more customers visited Starbucks, but spent less money. Sales comparable to China were flat in the second Starbucks fiscal quarter, as a 4% increase in transactions compensated with a 4% decrease in the size of the ticket. Analysts hoped that China sales in the same store would decrease more than 2%.

Other key statistics also disappointed. The coffee chain reported a tight benefit of $ 0.41 for the quarter ending on March 30, less than $ 0.49 planned from Wall Street analysts, according to Bloomberg data. His income of $ 8.76 billion was reduced to $ 8.83 million.

During the last year, Starbucks’ shares dropped around 9.5% compared to the 10.6% rise in S&P 500.

The company reported a margin of tight exploitation, the percentage of revenue left after the operating costs, 8.2%, below 9.5% provided by analysts, by Bloomberg.

The benefit of the coffee chain dropped more than 50% from the previous year to $ 384 million in the March period.

Starbucks Chief Executive Officer Brian Niccol acknowledged the discouraged results, saying: “Our Q2 results are disappointing”, but added that “behind the scenes, we moved a lot and made a real impetus with our” return to Starbucks “plan.

“My optimism has become the confidence that our back plan in the Starbucks plan is the right strategy to turn the business and unlock opportunities ahead,” he said.

After incorporating -Shipotle’s company (Cmg) last fall with a engaged Payment package and controversial advantagesNiccol Put on Starbucks Transmission Plan Since the coffee giant has flown in recent years, both in the United States and abroad.