The company slashed its forecast last quarter, predicting that its sales slump would not end any time soon.
The coffee giant has been struggling with waning demand in the U.S. and China, its two largest markets.Shares of Starbucks have tumbled about 21% this year, fueled by concerns about consumer demand for its coffee. For the past two quarters, the company's U.S. same-store sales have declined as its occasional customers have visited even less frequently. Sales in China, its second-largest market, have struggled as customers switch to locally owned, cheaper rivals such as Luckin Coffee.
The company also slashed its forecast last quarter, predicting that its sluggish sales would not pick up for another several quarters. For fiscal 2024, Starbucks is projecting revenue growth of a low single-digit percentage and earnings per share growth in a range of flat to a low single-digit percentage.
Pressure is mounting on CEO Laxman Narasimhan. After last quarter's rough report, three-time former CEO Howard Schultz, who handpicked Narasimhan, weighed in on LinkedIn, saying the company needs to improve its stores and mobile order experience. While Schultz does not have a formal role at the company anymore, he still owns about 2% of the company's shares.
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