**Starbucks Suspends Forecasts Amid Struggles Under New CEO Brian Niccol**

Starbucks Corp has decided to put a hold on its annual forecasts as newly appointed CEO Brian Niccol takes the helm, aiming to address the company's dwindling customer demand. This announcement led to a 4% drop in Starbucks shares during after-hours trading on Tuesday.

The global coffee chain anticipates a decline in both sales and profits for the fourth quarter. Niccol, who previously steered Chipotle Mexican Grill through a successful turnaround, took over the leadership from Laxman Narasimhan on September 9th. Niccol stepped into his new role at a challenging time when Starbucks faces significant market weaknesses in both the United States and China.

In a video accompanying the company's preliminary results, Niccol emphasized that Starbucks needs a fundamental shift in its current strategy. "We will simplify our overly complex menu, fix our pricing architecture, and ensure that every customer feels Starbucks is worth it every single time they visit," he said.

The company's expectations for the fourth quarter are sobering, with a projected 6% decline in comparable sales as their in-app promotions have failed to attract enough customers. Specifically, sales in China are expected to see a 14% drop. Chief Financial Officer Rachel Ruggeri noted that despite increased investments, the company could not alter the downward trend in customer traffic, impacting both their revenue and profits. "We are developing a plan to turn around our business, but it will take time," Ruggeri stated.

Niccol has set out a 100-day plan aimed at improving the customer experience in U.S. stores. The CEO inherits a myriad of challenges at Starbucks, from pressures by activist investors to revitalize the business to facing stiff competition and weakening demand in pivotal markets. As a consequence of the CEO transition and the current state of the business, Starbucks has suspended its annual forecasts for the fiscal year ending in September 2025.