Starbucks reports better than expected quarterly sale when the rotation effort begins

Starbucks SBUX-Q on Tuesday reported a better than expected sale in its fiscal first quarter as some of its rotation efforts begin to grab.

Seattle Coffee Giant said the revenue was flat for $ 9.4 billion for the 13-week period ending December 29. It beat Wall Street’s forecast of $ 9.3 billion, according to analysts held by the fact.

Chairman and CEO Brian Niccol, who took over the company in September, said customer-focused changes-such as a decision to stop charging extra for non-dairy milk and a streamlining of the Hjalp menu to improve service and operate store traffic.

Starbucks is trying to restore himself as a gathering place, and this week announced that it will start using ceramic mugs and offering customers in the store free of charge for free -filling coffee or tea. The company is also trying to appeal to customers with a new rule that requires people to buy something if they want to hang out or use the toilet.

Starbucks’ sale of the same store or sales in places that were open at least a year-in 4% compared to the same period last year. The fall was less than the expected 5.5% analysts according to the fact. It was also better than the previous quarter when the global sale of the same store fell 7%.

US sales in the same store also fell 4% in the first quarter. Starbucks said transactions fell 8%, but customers used more per day. Visit. Starbucks also withdrew on discounts during the quarter, Niccol said.

“We have taken steps to focus the company, our mission and our marketing to better adapt to our identity as a coffee company,” he said in a video message.

Also on Tuesday, Niccol announced the departure of two senior executives and a switching of their job responsibility.

Niccol said that Mike Grams, who last served as president of Taco Bell, will be Starbucks’ Chief Stores officer for North America. Meredith Sandland, CEO of Empower Delivery and former Chief Development Officer at Taco Bell, will be Starbucks’ Chief Store Development Officer. Niccol led Taco Bell until 2018 when he traveled to run chipotle.

Niccol also announced earlier this month that Starbucks is planning an unspecified number of corporate offers in early March.

Starbucks’ shares rose 3% in trading after hours Tuesday.