- Unfazed devotees shrug off stampede at India mega-festival
- Plane carrying more than 60 collides with helicopter, crashes in Washington
- Short-handed Cavs handle Heat, Celtics cruise past Bulls
- Israel cuts ties with UN aid agency supporting Palestinians
- ECB to look past Trump risk and push on with rate cuts
- Life's 'basic building blocks' found in asteroid samples
- Dupont returns to Six Nations as France bid to dethrone Ireland
- Mafia waste victims seek justice in Italy's 'Land of Fires'
- Israel, Hamas poised for third hostage-prisoner exchange
- Passenger plane collides with helicopter near Washington airport
- Afghan women cricketers reunite in first game after fleeing Taliban
- Asian markets diverge in thin trade, with AI impact in focus
- Australia says reliance on coal-fired power drops to record low
- Inter roll into Milan derby with leaders Napoli in their sights
- Fly-half dilemma hinders Irish bid for Six Nations history, says MacNeill
- DR Congo leader says troops mounting 'vigorous' response to M23 advance
- Beatles' Grammy nod spotlights music industry's AI debates
- With 'I'm Still Here,' Brazil confronts ghosts of dictatorship
- 'Uncertainty never ends' as deal to free Cuba prisoners unravels under Trump
- Salvadoran town hopes Trump brings 'good times' for bitcoin
- France open Six Nations against 'transitioning' Wales
- Tesla results miss estimates as company projects 2025 auto volume growth
- Tortoise Capital Announces 2024 Closed-End Fund Tax Characterization of Distributions and Release of Combined Annual Report
- Bellingham says Real Madrid ready for any opponent in Champions League play-offs
- Luis Enrique praises PSG for making knockouts despite 'worst draw'
- Meta posts big profit, aims to take AI lead
- Scalded by Colombia row, Latin America treads carefully with Trump
- Man City will pose problems for Madrid or Bayern, promises Guardiola
- Meta agrees to pay Trump $25 mn to settle account ban lawsuit
- Villa won't sell Watkins to Arsenal insists Emery
- Trump's environment pick confirmed, drawing cheers from industry
- Trump commerce pick says favors broad tariffs, vows tough China stance
- Brazil central bank hikes interest rate as Lula's woes mount
- Dortmund appoint Kovac as coach on 18-month deal
- Man City, PSG stay alive in Champions League as Arsenal reach last 16
- Meta posts big profit, plans massive AI investment
- Global stocks mixed as market awaits ECB decision
- Trump unveils plan to detain 30,000 migrants at Guantanamo
- Powell says US Fed in no hurry to cut rates after pause
- Barca secure second in Champions League with Atalanta draw
- Man City rally to avoid Champions League exit, face Madrid or Bayern next
- Rodrygo, Bellingham fire Real Madrid to win over Brest
- Villa survive Celtic scare as Rogers treble seals last 16 berth
- Dembele hits hat-trick as PSG reach Champions League knockouts
- Persistent PSV rain on Liverpool's Champions League perfect parade
- Rwanda-backed fighters advance in DR Congo
- US test scores remain below pre-Covid, performance gap widens
- Tesla results miss estimates, citing lower vehicle prices
- Man City rally to avoid Champions League knockout blow against Brugge
- Dortmund to name Kovac as coach until 2026
Starbucks profits fall but points to progress in turnaround
Starbucks reported lower profits Tuesday in results that still topped expectations as the company's new CEO described various pilot program tests to reinvigorate the chain.
Profits came in at $780.8 million, down 23.8 percent from the year-ago level. Revenues declined 0.3 percent to $9.4 billion, as comparable store sales fell in both North America and international markets.
The chain, which has hit a rough patch of sagging sales, installed Brian Niccol as CEO last year, recruiting him from Chipotle after the short-lived tenure of Laxman Narasimhan.
Niccol has reinstated self-service condiment bars for customers in US stores and shifted policies to permit bathroom use only to patrons.
On Tuesday, prior to the earnings announcement, Starbucks announced the departure of two longtime executives, Sara Trilling and Arthur Valdez, whose roles will be reconfigured under a new operating model.
Niccol's goal is that Starbucks "gets back" to its identity as "a welcoming coffee house where people gather and where we serve the finest coffee handcrafted by our skilled baristas."
The chain is working to ensure that customers are moved through and served within four minutes with a "touch of humanity," Niccol said on a conference call with analysts.
To that end, the company has reintroduced ceramic mugs and handwritten notes to customers on coffee cups.
Starbucks is also experimenting with algorithms that can improve efficiency in the production of drinks ordered through the company's smartphone app, Niccol said.
Customers have complained of lengthy wait times for online orders where they stand near rows of prepared drinks waiting for other customers.
"Right now mobile ordering is just a first in, first out proposition and we've got to fix it," he said, adding that fixing the issue will take "the brand right back where it needs to be, which is a premium experience."
Shares rose 0.6 percent in after-hours trading.
T.Sanchez--AT