Starbucks has reported a 4% decline in global comparable sales for the 13 weeks to 31 March 2024 (Q2 2024).

This was driven by a 6% decline in comparable transactions, but partially offset by a 2% increase in the average ticket.

Consolidated net revenues declined 2% to $8.6bn.

The coffee giant last reported its UK financial results earlier this year, with 22% year-on-year sales growth to £547.7m in the year to 1 October 2023.

It currently operates an estate of c1,260 stores in the UK and plans to open a further 100.

It has invested significantly in its drive-thru network to reach an estate of 340 UK drive-thrus, and will continue to focus on key drive-thru sites as well as high footfall city centre locations.

Starbucks opened 364 net new stores in Q2, ending the period with 38,951 stores. Stores in the US and China comprise 61% of the company’s global portfolio.

CEO Laxman Narasimhan commented: “In a highly challenged environment, this quarter’s results do not reflect the power of our brand, our capabilities or the opportunities ahead. It did not meet our expectations, but we understand the specific challenges and opportunities immediately in front of us. We have a clear plan to execute and the entire organization is mobilized around it. We are very confident in our long-term and know that our Triple Shot Reinvention with Two Pumps strategy will deliver on the limitless potential of this brand.”

Rachel Ruggeri, CFO, added: “While it was a difficult quarter, we learned from our own underperformance and sharpened our focus with a comprehensive roadmap of well thought out actions making the path forward clear. On this path, we remain committed to our disciplined approach to capital allocation as we navigate this complex and dynamic environment.”