Former Starbucks Corp (NASDAQ:SBUX) Chief Executive Howard Schultz reportedly urged the coffee chain to acknowledge its faults and revamp operations following a significant sales decline.

Shares nosedived subsequent to a drop in sales, attributed to factors including weather conditions and global conflicts.

Seattle-based Starbucks, grappling with inflation, faces challenges in attracting budget-conscious consumers, reported Bloomberg.

Second-quarter comparable store sales declined 4% globally, driven by a 6% decline in comparable transactions.

Starbucks reported second-quarter revenue of $8.6 billion, which missed the consensus estimate of $9.129 billion. Quarterly earnings of 68 cents per share,  missed analyst estimates of 79 cents per share.

Schultz emphasized the need for senior leaders to transform the mobile ordering system and enhance the overall customer experience, advocating for coffee-centric innovations.

Starbucks confronts intensified competition in China, where local competitor Luckin Coffee Inc (OTC:LKNCY) has overtaken its sales. Despite challenges, Schultz remains optimistic about Starbucks' recovery and future prospects in China.

Asserting his confidence in Starbucks' resilience, Schultz underscored the necessity for substantial changes in business strategies, emphasizing the importance of experiential over transactional approaches.

Price Action: SBUX shares are trading higher by 1.08% at $73.90 in premarket at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.