Starbucks Posts Less Comparable Sales Sales than Expected Since Vending Cut Root

(Reuters) -Starbucks reported a less than expected fall in comparable sales in the first quarter of Tuesday, indicating early signs of success for CEO Brian Niccol’s turning efforts for the coffee chain fighting against weak demand.

The company’s shares rose 4% in extended trade. They have received almost 30% since Niccol’s appointment last August.

Niccol, who was credited by reviving the burrito chain chipotle Mexican grill, has looked to turn Starbucks back to his coffee house roots in the United States by rolling a simpler menu, ceramic cups, refilling and spices. He also approached an important concern for eateries by reducing waiting times in the cafes to less than four minutes.

Starbucks ‘global sale of the same store fell 4% in its fiscal first quarter compared to analysts’ expectations of a fall of 4.6%, according to data prepared by LSEG.

The company, which is known for its expensive lattes, also said that it would not take additional price increases this year as it seems to appeal to consumers who pair back to large non-essential expenses and to ward off competition from several upstarts -marks.

In addition, the company also preserved the practice of allowing unpaid guests to use toilets or store seating, which only makes them available to customers.

The company’s comparable sales in North America fell 4% in the three months ending December 29, Niccol’s first full quarter at the helm compared to the expectations of a 4.7% decrease.

Starbucks, who suspended his forecasts for 2025 late last year to give Niccol the freedom to pursue his restructuring efforts, has given reason for rivals such as Luckin Coffee in China.

Comparable sales fell 6% in China after a 14% fall in the previous quarter.

(Reporting Juveria Tabassum in Bengaluru; Editing Sriraj Kalluvila)