Starbucks sees signs of recovery as results beat forecasts

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Starbucks sees signs of recovery as results beat forecasts

STORY: Starbucks just might be on the mend.

Results out Tuesday showed a smaller-than-expected fall in sales over the first quarter.

Earnings per share also beat estimates.

Analysts say it’s a sign that the coffee chain is benefiting from turnaround efforts under new CEO Brian Niccol.

He took over in August last year, and Starbucks shares are up nearly 30% since.

They rose another 0.5% in U.S. after-hours trade on Tuesday.

In his previous job, Niccol was credited with turning around burrito chain Chipotle ******** Grill.

Now he has rolled out a series of revival measures at Starbucks.

That includes a simpler menu, ceramic cups and refills.

And he’s taken steps to reduce the wait time at cafes to under four minutes.

Niccol has also cut back on the company’s deals and discounts, and sought to broaden its marketing beyond loyalty program members.

Starbucks still faces big challenges, including a loss of market share to rivals like China’s Luckin Coffee.

Tensions are also high with the union attempting to organise the firm’s baristas.

Contract negotiations have now dragged on for almost a year, and December saw strikes at 300 outlets.

The Workers United union says Starbucks has reneged on a “path forward” that it agreed last year.

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