Stabucks CEO Brian Niccol reveals new ideas to improve customer service using AI, other tech

Starbucks forecast annual profit above expectations, signaling that cost cuts and operational changes under CEO Brian Niccol’s two-year turnaround efforts are taking root.Niccol repeatedly told investors on the earnings call that his “Back to Starbucks” strategy is no longer a turnaround, but a plan for growth.The company said it aims to deploy about $1 billion towards share repurchases.Niccol has spent the past two years simplifying menus, improving staffing levels, and reducing wait times as part of his “Back to Starbucks” turnaround, helping the coffee chain achieve stable sales growth, although investors have been increasingly focused on whether the company can restore profitability.Starbucks has been addressing its costs through restructuring, including layoffs and store closures, aiming to offset the nearly $500 million in labor investments as part of the overhaul.Niccol said the coming year will have a focus on tech and modernization, listing as examples an AI system to assist baristas in taking drive-through orders, as well as systems that could “recognize participating customers as they arrive, present personalized digital menus and make payment more effortless.”The Seattle-based company forecast annual adjusted earnings per share of $3.15 to $3.25, compared with analysts’ expectation of $3.14 per share, according to data compiled by LSEG.The world’s largest coffee chain reported fourth-quarter global same-store sales growth of 7.2%, which surpassed analysts’ expectations of a 5.4% rise.Adjusted earnings per share came in at 80 cents, above the 72-cent estimate.Starbucks closed its deal with Boyu Capital to ​sell control of its Chinese operations earlier this year, valuing the business at $4 billion, intending to jump-start growth in the region, the hit from which pushed its annual revenue forecast to a 1% decline, compared with expectations of a 1.4% rise.Shares of the company were down about 2% in extended trading.Michael Gunther, a...