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Key Takeaways
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Starbucks is expected to report fiscal first-quarter results after the market closes Tuesday.
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More than half the analysts covering Starbucks as tracked by Visible Alpha have a "buy" or equivalent rating for the stock.
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Starbucks is dealing with "lingering challenges around product innovation," Jefferies analysts said.
Starbucks (SBUX) is expected to report fiscal first-quarter results after the market closes Tuesday, with analysts calling for revenue and earnings to fall year-over-year.
Of the 16 analysts covering the stock tracked by Visible Alpha, 10 have issued “buy” or equivalent ratings, with four giving the stock a “hold” rating, and two opting for “sell.” Their consensus price target of near $106 would suggest about 7% upside from Friday’s closing price near $99.
The coffee giant is expected to report fiscal first-quarter net sales of $9.33 billion, down 1% year-over-year, and earnings of $776.77 million, or 68 cents per share, down from $1.02 billion, or 90 cents per share, a year ago.
Analysts See Fall in US Same-Store Sales
Same-store sales are expected to fall 4.8% year-over-year, according to Street estimates.
Jefferies analysts have called for a 6% decline in U.S. same-store sales for Starbucks, citing foot-traffic data from Placer.ai. Starbucks is dealing with "lingering challenges around product innovation," the firm said, while its analysts questioned new Chief Executive Officer Brian Niccol's decision to "pull back on discounting/promos" in favor of broad, brand-focused national advertising.
Analysts will be watching for possible 2025 forecast updates after Starbucks did not release a full-year outlook last quarter. The company said last fall that it wanted to “complete an assessment of the business” under Niccol, who took the reins in September.
Shares of Starbucks are up about 7% over the past 12 months.
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