Starbucks’ profit slumps as costs mount from turnaround effort

Starbucks reported a 50% decline in net income to $384.2 million for the latest quarter, despite a 2% increase in revenue to $8.8 billion, indicating challenges in its turnaround efforts under CEO Brian Niccol. This marked the fifth consecutive quarter of falling global comparable store sales, with a 1% decrease and 4% fewer transactions in U.S. stores year-on-year. Operating expenses rose by 12.1% to $4.2 billion, as Niccol aims to improve customer experience by reducing wait times and simplifying menus amidst a prolonged sales slump.