Starbucks is set to release its quarterly earnings report after the bell on Tuesday, amid ongoing efforts to reverse a trend of declining same-store sales. Wall Street analysts anticipate earnings per share to be 67 cents, with revenue projected at $9.31 billion. Despite facing its fourth consecutive quarter of declining same-store sales, the company has seen a modest improvement in sales compared to the previous quarter.
CEO Brian Niccol, who joined the company in September from Chipotle, is spearheading efforts to rejuvenate Starbucks' business. Niccol aims to reinvigorate the brand by reintroducing popular features such as the condiment bar and overhauling the menu. Additionally, Starbucks is focused on enhancing its service speed, targeting an order completion time of under four minutes.
In October, Starbucks suspended its fiscal 2025 forecast, citing these turnaround efforts as a key priority. The company is navigating challenges in its two largest markets, the U.S. and China, where consumers have been visiting its cafes less frequently in favor of alternative options for their caffeine needs. Analysts predict a decline in same-store sales of 5.5%, an improvement from last quarter's 7% decline.
Despite these hurdles, Starbucks' shares have risen by 7% over the past year, reflecting investor confidence in the company's strategic initiatives. The company's market capitalization currently stands at $113.5 billion.
Analysts remain cautiously optimistic about Starbucks' path forward, as the company implements changes that could potentially stabilize its market performance. Investors are keenly observing how these strategic adjustments might impact future earnings and overall growth.