Starbucks Posts Less than Expected Sales Fall in the middle of the Rotation Effort | Starbucks

Starbucks reassured Wall Street with a less than expected fall in comparable sales, an early sign that its efforts to revive sluggish demand could bear fruit.

The world’s largest coffee chain, which earlier this month announced that people who use its cafes, cross North America, have to buy something, is in the middle of a turning bid to win back customers.

Brian Niccol, who took up the company as CEO of September, has said Starbucks has to “fundamentally change” his strategy. Changes have included the roll -out of a simpler menu, ceramic cups, refill and spices and a drive to reduce waiting times to less than four minutes.

The global sale of the same store in Starbucks fell 4% in its fiscal first quarter, the three months ending December 29. Analysts had expected a fall of 4.6%, according to data prepared by LSEG.

Comparable sales fell 4% in North America compared to the expectations of a 4.7% decrease. Comparable sales fell 6% in China after a 14% fall in the previous quarter.

Shares in the company’s shares rose 4% during trading after hours on Wall Street. They’ve got almost 30%since Niccol, who was credited to revive the Burrito Chain Chipotle Mexican Grill, was first announced as the new boss last August.

“While we are only a quarter into our turn, we move quickly to act on ‘Back to Starbucks’ efforts, and we have seen a positive answer,” he said.

“We believe that this is the fundamental change in the strategy needed to solve our underlying problems, restore confidence in our brand and return the company to sustainable, long -term growth.”

Reuters contributed reporting