**Starbucks Reports Third Consecutive Quarter of Declining Sales**

Starbucks has released its quarterly earnings report, showing a 3% decline in sales, marking the third straight quarter of falling revenue for the global coffee chain. The company missed Wall Street expectations with earnings per share at 80 cents versus the predicted $1.03, and revenue hitting $9.07 billion against the anticipated $9.36 billion.

This fiscal report is the first to be issued since Brian Niccol took over as CEO on September 9. Niccol is tasked with rejuvenating Starbucks' U.S. business and reversing its downward trend. In his statement, Niccol acknowledged the need for a fundamental shift in strategy to regain customers, emphasizing that they have a clear plan to return Starbucks to growth.

The company's net income for the fourth fiscal quarter was $909.3 million, down from $1.22 billion the previous year. Traffic to Starbucks stores worldwide decreased by 8% during the quarter, with global same-store sales dropping 7%. Particularly concerning were the declines in the U.S. and China, the two largest markets for Starbucks. U.S. same-store sales were down 6%, driven by a 10% drop in traffic. In China, same-store sales fell by a more alarming 14%, with both traffic and average ticket prices decreasing.

The coffee giant faces increasing competition in China from local brands like Luckin Coffee, which are able to offer lower prices. Investors and analysts alike are eagerly anticipating further details of Niccol's turnaround strategy, which he is expected to share during the company's scheduled conference call.

Starbucks' stock saw a 1% dip in extended trading following the release of the earnings report, reflecting investor concerns about the company's performance. With its fiscal 2025 outlook suspended, all eyes are on Niccol to see if he can steer Starbucks back to its former growth trajectory.