CEO Weekly — Business News, Leadership & Lifestyle – Copy

Starbucks CEO Brian Niccol is moving the coffee chain into the next phase of its turnaround after the company restored comparable-sales growth across multiple quarters. The strategy has focused on customers, stores, and employees, while recent results show management facing the challenge of improving profitability alongside the recovery. Key Takeaways Starbucks has reported four consecutive quarters of positive global comparable-sales growth under CEO Brian Niccol. The company’s global and U.S. comparable sales increased 7.9% in the fiscal third quarter. Starbucks has invested in stores, employees, and customer experience through its “Back to Starbucks” strategy. Earlier investments placed pressure on operating margins, although margins have improved for two consecutive quarters. Starbucks is now balancing continued sales growth with efforts to improve profitability. Starbucks Reports Progress Under Brian Niccol’s Turnaround Strategy Starbucks has reported four consecutive quarters of positive global comparable-sales growth under Brian Niccol, who has led the company’s “Back to Starbucks” strategy. The company reported the latest results in July, when global and U.S. comparable sales increased 7.9% in the fiscal third quarter. Transactions also increased 4.2% during the quarter. Starbucks reported earnings of $0.85 per share and a profitability margin of 14.4%. The results followed a strategy centered on restoring the customer experience and improving store operations. Starbucks has sought to address service and operational issues while investing in employees and its coffeehouses. Niccol said the company remained focused on executing the “Back to Starbucks” plan and improving customer service. The strategy has placed customer experience at the center of the turnaround rather than relying only on menu changes or sales promotions. The company also reported its second consecutive quarter of margin expansion in the fiscal third quarter. That improvement followed earlier pressure on profitability as Starbucks increased spending to support the turnaround. Starbucks said its fiscal third-quarter results