Starbucks reports better-than-expected quarterly sales as turnaround efforts begin

Starbucks reports better-than-expected quarterly sales as turnaround efforts begin
A view shows the logo of an American coffee company, Starbucks, on a wall outside a coffee shop in Mexico City, Mexico July 24, 2024. (Reuters)
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Updated 29 January 2025
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Starbucks reports better-than-expected quarterly sales as turnaround efforts begin

Starbucks reports better-than-expected quarterly sales as turnaround efforts begin
  • Chairman and CEO Brian Niccol says Starbucks plans to cut its food and beverage offerings by 30% over the course of this year to simplify operations and speed service

Starbucks on Tuesday reported better-than-expected sales in its fiscal first quarter as some of its turnaround efforts start to deliver results.
The Seattle coffee giant said its revenue was flat at $9.4 billion for the 13-week period ending Dec. 29. That beat Wall Street’s forecast of $9.3 billion, according to analysts polled by FactSet.
Chairman and CEO Brian Niccol, who joined the company in September, said customer-focused changes — such as a decision to stop charging extra for non-dairy milk and a streamlining of the menu — were helping to improve service and drive store traffic.
In a conference call with investors Tuesday, Niccol said Starbucks is planning to cut its food and beverage offerings by 30 percent over the course of this year to simplify operations and speed service. Starbucks will also add digital menus to all of its company-owned US stores over the next 18 months to make ordering options clearer and make it easier to shift its offerings depending on the time of day.
Niccol said the company is also adding staff to some stores and experimenting with ordering algorithms that prioritize in-store customers and better pace mobile orders.
“The place where we run into problems, frankly, is the fact that there is just no gating on the mobile orders,” Niccol said. “All these orders come flooding in faster than even our customer can get there. So all these drinks are sitting on the counter, and it’s at the expense of providing any other experience for a customer that’s right in the store.”
Starbucks is trying to reestablish itself as a gathering place, and this week announced that it will start using ceramic mugs and offering in-store customers free refills of coffee or tea. The company is also trying to appeal to customers with a new rule that requires people to buy something if they want to hang out or use the restroom.
“This is back to the core of what makes Starbucks a unique experience,” Niccol said.
Starbucks’ same-store sales — or sales at locations open at least a year — fell 4 percent compared to the same period last year. The decline was less than the 5.5 percent analysts anticipated, according to FactSet. It was also better than the previous quarter, when global same-store sales were down 7 percent.
US same-store sales also fell 4 percent in the first quarter. Starbucks said transactions were down 8 percent but customers spent more per visit. Starbucks also pulled back on discounts during the quarter, Niccol said.
Niccol said he recently visited China, Starbucks’ second-largest market, where sales have been hampered by lower-cost competitors. China’s same-store sales fell 6 percent in the fiscal first quarter.
Niccol said Starbucks is continuing to explore a strategic partnership that would help it continue to grow in China.
Niccol has also been reshaping Starbucks’ corporate staff. Earlier Tuesday, he announced the departure of two senior executives and a reshuffling of their job responsibilities.
Mike Grams, who most recently served as president of Taco Bell, will become Starbucks’ chief stores officer for North America. Meredith Sandland, the CEO of Empower Delivery and the former chief development officer at Taco Bell, will become Starbucks’ chief store development officer. Niccol led Taco Bell until 2018, when he left to run Chipotle.
Niccol also announced earlier this month that Starbucks plans an unspecified number of corporate layoffs by early March.
Starbucks’ shares rose less than 1 percent in after-hours trading Tuesday.


Indian police shut down Ed Sheeran’s street gig

Indian police shut down Ed Sheeran’s street gig
Updated 10 February 2025
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Indian police shut down Ed Sheeran’s street gig

Indian police shut down Ed Sheeran’s street gig
  • British singer-songwriter and four-time Grammy winner is touring the world’s most populous country
  • Sheeran denied he had broken the law, saying he had been granted permission to busk ‘in that exact spot’

BENGALURU, India: Pop megastar Ed Sheeran has denied that he unlawfully serenaded the Indian public after police said he lacked the necessary permission to play and abruptly terminated a street performance.

The British singer-songwriter and four-time Grammy winner is touring the world’s most populous country but took time out between concerts to busk to a surprised crowd in tech hub Bengaluru on Sunday.

Videos shared on social media show a police officer disconnecting his microphone midway through a rendition of his hit “Shape of You” on Church Street, a bustling retail hub.

Local authorities said that while Sheeran had a permit to play at concerts, that did not extend to impromptu outdoor performances.

“He is a very famous singer and naturally there will be chaos. To prevent that, police had not given him permission,” Karnataka’s home minister G. Parameshwara said on Monday.

“In spite of that, he has come and tried to perform, so police prevented him. Nothing beyond that.”

 

 

Sheeran denied he had broken the law, saying he had been granted permission to busk “in that exact spot.”

“It wasn’t just us randomly turning up,” he wrote on Instagram shortly after the incident, adding magnanimously that it was “all good though.”

Local lawmaker PC Mohan said on Sunday that “even global stars must follow local rules — no permit, no performance!”

Social media users were critical of the police yanking out Sheeran’s microphone cables, with one calling it “abysmal and embarrassing.”

Another criticized Indian police for failing to effectively prosecute crimes against women, but Sheeran “singing on the street is where they draw the line.”

Sheeran is currently on a six-city tour of India and also had a sold-out performance in Mumbai last year.

Booming demand from young affluent Indians looking to splurge on new entertainment experiences are drawing international acts to play in the country.

British rock band Coldplay performed what it called its “biggest-ever show” at a massive cricket stadium in the western city of Ahmedabad in January.


Super Bowl halftime performer detained after unfurling Sudanese-Palestinian flag

Super Bowl halftime performer detained after unfurling Sudanese-Palestinian flag
Updated 10 February 2025
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Super Bowl halftime performer detained after unfurling Sudanese-Palestinian flag

Super Bowl halftime performer detained after unfurling Sudanese-Palestinian flag
  • The NFL confirmed the person was part of the 400-member field cast
  • The performer stood on a car used as a prop for Lamar’s performance and held up the flag

NEW ORLEANS: A performer in Kendrick Lamar’s Super Bowl halftime show was detained on the field and could face charges after unfurling a combination Sudanese-Palestinian flag with “Sudan” and “Gaza” written on it.
The NFL confirmed the person was part of the 400-member field cast. The New Orleans Police Department said in a statement that “law enforcement is working to determine applicable charges in this incident.”
“The individual will (be) banned for life from all NFL stadiums and events,” NFL spokesperson Brian McCarthy said in an emailed statement.
The performer stood on a car used as a prop for Lamar’s performance and held up the flag. The NFL said “the individual hid the item on his person and unveiled it late in the show” and that “no one involved with the production was aware of the individual’s intent.”
Roc Nation, the entertainment company which produced the show, said that the act “was neither planned nor part of the production and was never in any rehearsal.”
The show continued without interruption, and it did not seem as though the person was shown on the broadcast of Lamar’s performance.


Afghan wedding halls light up somber Kabul nights

Afghan wedding halls light up somber Kabul nights
Updated 10 February 2025
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Afghan wedding halls light up somber Kabul nights

Afghan wedding halls light up somber Kabul nights

KABUL: As night settles over Afghanistan’s capital, only a few small lights and neon signs pierce the darkness and thick blanket of winter pollution.
But on some street corners, glittering colossal wedding halls loom out of the gloom, a rare display of opulence in the Afghan capital.
The city of more than six million people is often plunged into shadow due to ubiquitous power outages, which only the wealthiest can remedy with expensive generators or solar panels.
Apart from a few vendors, the streets are deserted, a stark contrast with the chaotic hustle of the daytime.
People huddle at home to shelter from the cold and for lack of nighttime activities.
Since the Taliban took power in 2021 and imposed their strict version of Islamic law, a veil of sadness has enveloped the capital.
There is no music spilling out from restaurants because it is forbidden, women are banned from parks, and walls decorated with colorful pro-peace graffiti have been splashed with calls to holy war.
The only bright lights emanate from the wedding halls that dot the city center and escape some of the Taliban’s scrutiny, as marriage is prized in Afghan culture.
The high-ceilinged halls are segregated by gender, with music only tolerated on the women’s side.
“In Afghanistan, the marriage ceremony is the most important event for girls and boys. It’s a once-in-a-lifetime event — we don’t have much divorce,” said Mohammad Wassil Qaumi, director of the Imperial Continental, a palatial white-and-gold hall that shines with a glitz reminiscent of a Las Vegas casino.
“It’s the start of a new life so the light should be everywhere, that’s why the city is bright, it should have a little bit of luxury!” he told AFP.

DECORATIONS
Bunches of plastic flowers, throne-style sofas, gilded trimming and neon lights fill the complex’s four halls, some of which can accommodate up to 7,000 guests.
Qaumi, 32, says he spends $25,000 to $30,000 per month for municipal electricity, which provides a few hours of power per day.
To keep the lights on, he also pays just under $15,000 for generators.
To recoup his costs, he charges up to $20,000 for a wedding, in a country where 85 percent of the population lives on less than a dollar a day, according to the United Nations Development Programme.
“Weddings are a necessity in the Afghan culture, you have to invite more and more people” even if it means going into debt, said Hajji Safiullah Esmafi, owner of the Stars Palace hall.
In another district of the capital, the City Star welcomes its guests with a beige and gold facade topped with three sculpted domes and a huge sparkling arch out front.
“Electricity is very expensive,” admits the owner, 24-year-old Siyer Paiman.
But, he added, “people in Afghanistan like bright colors.”

ELECTRICITY
He has invested in solar panels and spends the equivalent of $12,000 to $19,900 on generators and electricity, which only covers six to seven hours a day, “and not always at night.”
Afghanistan depends on its Central Asian neighbors for imported electricity.
With the hopes of increasing supply, the country is involved in several regional interconnection projects, but progress is slow.
“The current demand in Afghanistan is about 7,000 to 8,000 megawatts but they currently produce locally about 1,000 megawatts and import the rest from Central Asia,” a sector expert who asked for anonymity told AFP, adding that renewable energy sources should be developed but that funding was lacking.
Power cuts also affect heating, with temperatures easily dropping below 0 degrees Celsius (32 degrees Fahrenheit).
Kabul’s residents use stoves, burning almost anything from coal and wood to plastic or household waste, creating a fog of pollution in the city slung between mountains 1,800 meters (5,900 feet) above sea level.
In the nighttime gloom, wedding halls are “the brightness of the city,” said Qaumi. “Here, everyone is very happy.”
“People come here to meet friends and family, (they) wear new clothes, jewelry... showing off so much,” he said of patrons enjoying one of the only places left in Kabul where this is still possible.


‘Anora’ wins top Hollywood producer and director prizes

‘Anora’ wins top Hollywood producer and director prizes
Updated 09 February 2025
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‘Anora’ wins top Hollywood producer and director prizes

‘Anora’ wins top Hollywood producer and director prizes
  • “Anora” was named the best film of the year by Hollywood’s directors and producers on Saturday, cementing its new status as the film to beat at the upcoming Oscars

LOS ANGELES: “Anora” was named the best film of the year by Hollywood’s directors and producers on Saturday, cementing its new status as the film to beat at the upcoming Oscars.
The black comedy from director Sean Baker, about an erotic dancer’s whirlwind romance gone wrong, picked up the prestigious Directors Guild of America and Producers Guild of America top awards, just a day after capturing the foremost US critics’ prize.
“My imposter syndrome is skyrocketing right now!” said Baker, a 53-year-old indie director, previously best known in arthouse circles for his empathetic portrayals of life in US subcultures, as he accepted his prize at a swanky Beverly Hills DGA gala.
Baker thanked his producers for being “able to pull off a $6 million film, shot on film, in New York City in 2023 — almost impossible.”
“Anora” won the Cannes film festival top prize Palme d’Or back in May, yet had more recently lagged behind other films including “Emilia Perez” in terms of Oscar nominations.
Besides Saturday’s coup, “Anora” also won best picture at the Critics Choice Awards on Friday, propelling it as a renewed favorite for the Academy Awards — which will take place on March 2.
Accepting his prize from Christoper Nolan, last year’s DGA winner, Baker joked that campaigning for Hollywood’s seemingly never-ending awards season had made him feel like he was “actually doing work” for “the first time.”
“I’ve been able to play — and I feel like the luckiest guy in the world, being able to do the thing I’ve wanted to do since I was five years old,” said Baker.
He also thanked his mother for supporting his career — but the director, whose films mainly center around sex work and pornography, admitted he was glad she had not seen his latest, somewhat graphic project.
Nineteen of the past 21 DGA winners have gone on to also win the Oscar for best director that same year, including the last two winners — “Oppenheimer” and “Everything Everywhere All At Once.”
The DGA prize for best movie from a first-time filmmaker went to another Oscar best picture nominee, “Nickel Boys,” from RaMell Ross.
Ross, whose film about abuses at a 1960s Florida reform school for juvenile boys — shot as if from the eyes of its characters — said it was too “rare” to see the Black gaze represented in Hollywood cinema.
Meanwhile across town in Los Angeles Saturday, “Anora” also won the PGA top prize.


Ferrari’s 1965 Le Mans-winning car sold for 35 million euros

Ferrari’s 1965 Le Mans-winning car sold for 35 million euros
Updated 06 February 2025
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Ferrari’s 1965 Le Mans-winning car sold for 35 million euros

Ferrari’s 1965 Le Mans-winning car sold for 35 million euros
  • Ferrari said that the eye-watering sum is the highest paid for the 250 LM model
  • Masten Gregory and Jochen Rindt drove the car

ROME: The Ferrari which won the 1965 edition of the prestigious Le Mans 24 Hours race was sold for 34.9 million euros ($36.2 million) at a Paris auction, the Italian manufacturer said Thursday.
Ferrari said that the eye-watering sum is the highest paid for the 250 LM model, with this specific car winning Ferrari’s sixth consecutive title on the “Circuit de la Sarthe” in western France and their last until 2023.


Masten Gregory and Jochen Rindt drove the car, which had been on display at the Indianapolis Motor Speedway Museum since 1970 before being offered for sale by Sotheby’s, for the North American Racing Team (NART).
Ferrari gave no details as to the identity of the buyer of the 250 LM model, of which only 32 were made.
The record for the sale of a Ferrari was a 330 LM/250 GTO from 1962 which went under the hammer in New York for $51.7 million in November 2023.