Starbucks is expected to report its fiscal third-quarter earnings after the bell Tuesday.
Here’s what Wall Street analysts surveyed by Refinitiv are expecting:
- Earnings per share: 75 cents expected
- Revenue: $8.11 billion expected
The coffee giant suspended its fiscal 2022 outlook last quarter, citing the uncertainty caused by Covid lockdowns in China, the company’s second-largest market. This quarter, analysts are expecting Starbucks’ international same-store sales to drop 14.5%, according to StreetAccount estimates.
But Wall Street has more upbeat projections for the company’s home market, which is expected to report strong same-store sales growth. Still, CEO Howard Schultz will likely face questions about how the chain expects to fare if consumer spending slows down. Restaurant chains like Chipotle Mexican Grill, Olive Garden owner Darden Restaurants and McDonald’s have already reported that low-income customers are trading down or visiting less frequently.
Starbucks is also facing a union push from its U.S. baristas. More than 200 locations have in favor of unionizing under Workers United, and the union is now pushing the company to extend pay hikes and benefits to unionized stores.
Shares of Starbucks have fallen 27% this year, dragging its market value down to $98.37 billion.
