Starbucks is set to release its fiscal second-quarter earnings report on Tuesday after the market closes.
According to a survey conducted by LSEG, analysts anticipate the following results from the coffee powerhouse:
- Earnings per share: Expected at 49 cents
- Revenue: Anticipated to reach $8.82 billion
Analysts predict that Starbucks will see a decline in same-store sales for the fifth consecutive quarter. Specifically, estimates suggest a drop of 0.8% in North America and a 1.7% decline in international markets based on StreetAccount predictions.
Since CEO Brian Niccol took the helm in September, Starbucks has been undergoing a major turnaround. Initial strategies aimed at boosting U.S. sales include revamping its advertising approach, personalizing messages on coffee cups again, and enhancing the mobile app’s algorithm.
To date, the only significant restaurant operator that has reported earnings for the first quarter of the year is Niccol’s former company, Chipotle. The burrito chain also experienced a decline in same-store sales and lowered its full-year guidance, attributing these trends to reduced consumer spending and adverse weather conditions.
Starbucks shares have decreased by 8% this year, raising concerns among investors about the potential impact of tariffs on consumer spending. Currently, the company boasts a market capitalization exceeding $95 billion.
