A Starbucks said on Tuesday that it is suspending its annual projections, according to its new chief executive, Brian Niccolseeks to reverse the situation of the coffee giant, which is facing a drop in consumer demand.
The company’s shares fell about 6% in U.S. after-market trading as the coffee chain also expects to report a decline in quarterly sales and profits.
READ MORE: New Starbucks CEO undoes what his predecessor had done just six months earlier
Niccol took over from Laxman Narasimhan on September 9at a time when the chain is struggling to deal with weakness in its businesses in China and the United States, its two main markets.
“Despite our intense investments, we have been unable to change the trajectory of declining customer flow, resulting in pressures on both revenue and profits,” said Starbucks Chief Financial Officer Rachel Ruggeri.
“We are developing a plan to turnaround our business, but this will take time.”
