Starbucks has reported its sixth consecutive quarterly decline in US same-store sales, marking the company’s most prolonged downturn in over 15 years. For the fiscal third quarter, same-store sales in the US fell by 2%, reflecting ongoing headwinds in key domestic markets. This performance comes despite significant turnaround efforts led by CEO Brian Niccol, who has focused on improving both customer connection and employee engagement.

Despite the sales softness, there are emerging signs of progress. Employee satisfaction and customer connection scores are both on the rise, while customer complaints have decreased. Starbucks’ value proposition appears to be resonating more strongly with younger consumers, a critical demographic for the brand as it faces stiff competition from new chains like 7 Brew and Dutch Bros.

Notably, more company-operated stores are reporting growth in transactions. Delivery sales have surged by 25%, a highly incremental boost for the business. Perhaps most encouraging for the turnaround effort, transactional increases among occasional customers—those not enrolled in the Starbucks Rewards program—were observed for the first time since the pandemic recovery period.

CEO Brian Niccol emphasized that, although the financial results do not yet fully reflect the company’s operational improvements, positive indicators suggest momentum is building. Internationally, Starbucks saw flat comparable store sales overall, but in China—its second-largest market—same-store sales rose by 2%, supported by a 6% increase in transactions. Additionally, the company posted $2 billion in international revenue for the period.

Globally, Starbucks’ total revenue rose 3.8% year-over-year to $9.5 billion for the quarter. However, profit fell sharply by 47% to $558.3 million. While challenges remain, early signs of recovery point toward the potential for a successful turnaround under current leadership.