Starbucks reported quarterly earnings and sales on Wednesday that fell short of analysts’ expectations as sales disappointed in the U.S. and China, its two largest markets.

The company had previously released a preliminary report on its quarterly results on October 22 and announced that it would suspend its outlook for fiscal 2025.

This report is the first under CEO Brian Niccol, who joined the company on September 9 to revitalize the flagging business.

“It’s clear that we need to fundamentally change our strategy to win back customers,” CEO Brian Niccol said in a statement. “We have a clear plan and are moving quickly to get Starbucks back on track for growth.”

Investors expect Niccol to provide further details on its turnaround strategy during the company’s conference call scheduled for 5:00 p.m. ET.

Shares of the company fell 1% in extended trading on Wednesday.

Here’s what the company reported compared to Wall Street’s expectations, based on an analyst survey by LSEG:

• Earnings per share: 80 cents versus $1.03 expected
• Revenue: $9.07 billion versus expected $9.36 billion

Starbucks reported fiscal fourth-quarter net income attributable to $909.3 million, or 80 cents per share, down from $1.22 billion, or $1.06 per share, a year earlier.

Net sales fell 3% to $9.07 billion.

The company’s global same-store sales fell 7% due to weak demand in the U.S. and China. Traffic to its stores worldwide fell 8% in the quarter.

The company’s U.S. restaurants reported same-store sales declines of 6%, driven by a 10% drop in traffic.

In China, the company’s same-store sales fell 14% as both traffic and average ticket counts fell. Starbucks faces increased competition from local rivals such as Luckin Coffee, which can undercut the company’s prices.