Latest news with #SBUX
Yahoo
a day ago
- Business
- Yahoo
Starbucks Q3 Earnings: Can China's Recovery Perk Up a Lagging Stock?
Starbucks (NASDAQ:SBUX) reports fiscal Q3 results after the close on Tuesday, July 29. Consensus pins EPS at $0.65 and revenue at $9.30 billion. This would represent a significant 31% year-over-year decline in earnings, despite a modest 2% rise in sales. Shares closed at $94.42 on July 25, 2025, up about 3% year-to-date but still 23% below the March high, reflecting skepticism after Q2 earnings missed estimates. Investors will watch whether price/mix can offset declining traffic. Global comps have declined for five straight quarters, pulled down by a 4% drop in U.S. traffic and a 4% slide in average ticket in China. Beyond top-line figures, profitability and operating margins will be under the microscope, as the company's investments in labor and CEO Brian Niccol's Back to Starbucks strategy are expected to weigh on short-term earnings. Any updates on the strategic direction of its China business, including potential partnerships or sales, will also be of significant interest given the competitive pressures in that market. With the stock trading at 30 forward earnings, even a routine beat may disappoint if management cannot show visible traction on Niccol's traffic recovery and cost-saving checkpoints. This article first appeared on GuruFocus.
Yahoo
a day ago
- Business
- Yahoo
Starbucks set to report 6th straight US sales decline as CEO Brian Niccol continues turnaround efforts
Starbucks (SBUX) is set to report results for its fiscal third quarter after the market close on Tuesday as CEO Brian Niccol continues turnaround efforts and the company is expected to extend its US sales slump while facing an uncertain consumer environment. Wall Street expects same-store sales to fall 1.5%, per Bloomberg data, which would mark the sixth consecutive quarter of declining sales and an acceleration from the previous quarter's 1% drop. US same-store sales are expected to fall 2.5% with a 4.5% decline in traffic. Analysts expect same-store sales in China will rise 2.1% in the quarter, marking the second straight quarter of positive growth for China as the company seeks out a partner in the region. Earlier this month, the company told Yahoo Finance it was "looking for a strategic partner with like-minded values ... and [wants] to retain a meaningful stake in the business." Adjusted earnings are expected to fall roughly 30% from a year ago to $0.65. Revenue is forecast to grow roughly 2% to $9.29 billion. Starbucks stock is up around 3% year to date, trailing behind the S&P 500's (^GSPC) 8.5% gain. Read more: Live coverage of corporate earnings Since joining the company last fall, Niccol has tried to change the fortunes of the coffee chain by cutting staff earlier this year and announcing plans this month to require more staff to be in the office four days per week. "While the magnitude of the savings offset remains in question, management was clear that the corporate cost structure of the business would continue to be closely examined to accommodate the necessary in-store and marketing investments that drive transaction growth," Stifel analyst Chris O'Cull wrote in a note to clients. CFO Cathy Smith told analysts on Starbucks' second quarter earnings call that she expected the company's third quarter sales to "follow normal seasonality" but did not provide a formal outlook. The company has also incentivized its management team to more aggressively turn around the business, offering executives performance-based stock grants focused on cutting costs. Wall Street will also be looking to hear more about Starbucks' new labor model in the US, innovations like its SummerBerry Refreshers and Iced Horchata Oatmilk Shaken Espresso, AI-powered assistants on in-store tablets, and the impact of price changes for drink modifications and app updates. Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Starbucks set to report 6th straight US sales decline as CEO Brian Niccol continues turnaround efforts
Starbucks (SBUX) is set to report results for its fiscal third quarter after the market close on Tuesday as CEO Brian Niccol continues turnaround efforts and the company is expected to extend its US sales slump while facing an uncertain consumer environment. Wall Street expects same-store sales to fall 1.5%, per Bloomberg data, which would mark the sixth consecutive quarter of declining sales and an acceleration from the previous quarter's 1% drop. US same-store sales are expected to fall 2.5% with a 4.5% decline in traffic. Analysts expect same-store sales in China will rise 2.1% in the quarter, marking the second straight quarter of positive growth for China as the company seeks out a partner in the region. Earlier this month, the company told Yahoo Finance it was "looking for a strategic partner with like-minded values ... and [wants] to retain a meaningful stake in the business." Adjusted earnings are expected to fall roughly 30% from a year ago to $0.65. Revenue is forecast to grow roughly 2% to $9.29 billion. Starbucks stock is up around 3% year to date, trailing behind the S&P 500's (^GSPC) 8.5% gain. Read more: Live coverage of corporate earnings Since joining the company last fall, Niccol has tried to change the fortunes of the coffee chain by cutting staff earlier this year and announcing plans this month to require more staff to be in the office four days per week. "While the magnitude of the savings offset remains in question, management was clear that the corporate cost structure of the business would continue to be closely examined to accommodate the necessary in-store and marketing investments that drive transaction growth," Stifel analyst Chris O'Cull wrote in a note to clients. CFO Cathy Smith told analysts on Starbucks' second quarter earnings call that she expected the company's third quarter sales to "follow normal seasonality" but did not provide a formal outlook. The company has also incentivized its management team to more aggressively turn around the business, offering executives performance-based stock grants focused on cutting costs. Wall Street will also be looking to hear more about Starbucks' new labor model in the US, innovations like its SummerBerry Refreshers and Iced Horchata Oatmilk Shaken Espresso, AI-powered assistants on in-store tablets, and the impact of price changes for drink modifications and app updates. Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Starbucks Q3 Earnings: Can China's Recovery Perk Up a Lagging Stock?
Starbucks (NASDAQ:SBUX) reports fiscal Q3 results after the close on Tuesday, July 29. Consensus pins EPS at $0.65 and revenue at $9.30 billion. This would represent a significant 31% year-over-year decline in earnings, despite a modest 2% rise in sales. Shares closed at $94.42 on July 25, 2025, up about 3% year-to-date but still 23% below the March high, reflecting skepticism after Q2 earnings missed estimates. Investors will watch whether price/mix can offset declining traffic. Global comps have declined for five straight quarters, pulled down by a 4% drop in U.S. traffic and a 4% slide in average ticket in China. Beyond top-line figures, profitability and operating margins will be under the microscope, as the company's investments in labor and CEO Brian Niccol's Back to Starbucks strategy are expected to weigh on short-term earnings. Any updates on the strategic direction of its China business, including potential partnerships or sales, will also be of significant interest given the competitive pressures in that market. With the stock trading at 30 forward earnings, even a routine beat may disappoint if management cannot show visible traction on Niccol's traffic recovery and cost-saving checkpoints. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
2 days ago
- Business
- Forbes
How Will Starbucks' Stock React To Its Upcoming Earnings?
CHONGQING, CHINA - JULY 27: In this photo illustration, a smartphone displays the logo of Starbucks ... More Corporation (NASDAQ: SBUX), a leading global coffeehouse chain, in front of a screen showing the company's latest stock market chart on July 27, 2025 in Chongqing, China. (Photo illustration by) Starbucks stock (NASDAQ: SBUX) is set to announce its fiscal third-quarter earnings on Tuesday, July 29, 2025, with analysts estimating earnings of 64 cents per share on $9.3 billion in revenue. This would mark a 31% decrease in earnings on a year-over-year basis and a 2% increase in sales compared to last year's numbers of 93 cents per share and $9.11 billion in revenue. Historically, SBUX stock has tended to underperform after earnings releases, having decreased 55% of the time with a median one-day drop of 4.4% and a maximum decline recorded of 16%. Starbucks fell short of Q2 expectations as profits decreased by 50% and margins fell to 6.9% due to rising U.S. labor costs. Sales increased by 2% to $8.76 billion, but same-store sales dropped for the fifth consecutive quarter, by 1% due to diminished demand in the U.S. and China. The company noted early signs of improvement from its turnaround strategy. Starbucks management opted not to provide guidance for fiscal year 2025, indicating a phase of recalibration under the new leadership. The company's current market capitalization stands at $109 billion. Revenue for the past twelve months was $36 billion, and it operated profitably, generating $4.4 billion in operating profits with net income of $3.1 billion. For event-driven traders, historical trends may provide an advantage, whether by positioning before earnings or reacting to movements after the release. If you are looking for upside with less volatility than individual stocks, the Trefis High Quality portfolio offers an alternative, having outperformed the S&P 500 and generated returns exceeding 91% since its inception. See earnings reaction history of all stocks. Starbucks' Historical Chances of Positive Post-Earnings Return Here are some insights into one-day (1D) post-earnings returns: Additional information regarding observed 5-Day (5D) and 21-Day (21D) returns post earnings is summarized along with the statistics in the table below. SBUX 1D, 5D, and 21D Post Earnings Return Relation Between 1D, 5D, and 21D Historical Returns A relatively lower-risk strategy (though less effective if correlation is weak) is to analyze the relationship between short-term and medium-term returns post earnings, identify a pair that demonstrates the strongest correlation, and execute the relevant trade. For instance, if 1D and 5D show the highest correlation, a trader might consider positioning themselves "long" for the next 5 days if the 1D post-earnings return is positive. Here's some correlation data based on 5-year and more recent 3-year history. Note that the correlation 1D_5D refers to the relationship between 1D post-earnings returns and subsequent 5D returns. SBUX Correlation Between 1D, 5D and 21D Historical Returns Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (a combination of all three, the S&P 500, S&P mid-cap, and Russell 2000), delivering impressive returns for investors.
