The news: Starbucks reported its steepest quarterly sales decline in four years in Q4, underscoring the scale of the challenges new CEO Brian Niccol faces as he tries to revitalize the struggling company.
- Global comparable sales fell 7% year over year (YoY), twice as much as analysts expected, due to weakness in both the US and China.
- US comparable transactions fell 10% YoY, although the decline was partially offset by a 4% increase in average ticket; China comparable sales fell 14% YoY, due to an 8% decline in average ticket and a 6% fall in transactions.