Starbucks glass art in a Tokyo store.
Jakub Polzycki | Nurphoto | Getty Images
Starbucks The company is scheduled to report third-quarter results after the close of trading on Tuesday.
Here are the forecasts from Wall Street analysts surveyed by LSEG:
- Earnings per share: expected to be 93 cents
- Revenue: Estimated $9.24 billion
Starbucks shares have fallen about 21% this year amid concerns about consumer demand for its coffee. The company’s U.S. same-store sales have fallen in the past two quarters as occasional customers visit stores more rarely. Sales have been sluggish in China, its second-largest market, as customers turn to cheaper, locally-owned rivals such as Luckin Coffee.
The company also significantly lowered its earnings guidance for the last quarter, noting that it doesn’t expect sluggish sales to recover for the next few quarters.For fiscal 2024, Starbucks expects revenue growth in the low single digits and earnings per share growth in the flat to low single digit range.
Pressure is mounting on CEO Laxman Narasimhan. Three-time CEO Howard Schultz, who appointed Narasimhan after a dismal report last quarter, said on LinkedIn that the company needs to improve its in-store and mobile ordering experiences. Schultz no longer holds an official role at the company but still owns about 2% of the company.
Activist hedge fund Elliott Management has also acquired a stake in the company.
