Starbucks Corp. reported better-than-expected fiscal first-quarter earnings, indicating that its turnaround efforts are beginning to take hold. The coffee giant's net revenue remained flat at $9.4 billion, slightly surpassing analysts' estimates of $9.31 billion. Earnings per share fell 23% year over year to $0.69, beating the $0.67 expected by analysts. Global comparable store sales declined 4%, less than the projected 5.3% drop, marking the fourth consecutive quarter of sales declines. Operating margin contracted by 390 basis points to 11.9%. In the U.S., comparable store sales fell 4%, while in China they declined 6%, both outperforming expectations. Starbucks is implementing a 'Back to Starbucks' strategy, which includes cutting 30% of its menu items to streamline operations and improve efficiency. The company is also reorganizing its leadership team, bringing in two former Taco Bell executives and reshuffling its North American leadership. "While we're only one quarter into our turnaround, we're moving quickly to act on the 'Back to Starbucks' efforts and we've seen a positive response," commented the company's CEO. Starbucks Rewards membership in the U.S. reached 34.6 million active members. The company now operates 40,576 stores worldwide after opening 377 new locations during the quarter.