Starbucks (SBUX) Earnings Expected at $9.23B Revenue, 72¢ EPS
Published on · Source: cnbc.com
AI Summary
Summarized by AI from the source belowStarbucks (SBUX) will report its quarterly earnings after the market closes on Thursday. Analysts surveyed by LSEG expect earnings per share (EPS) of 72 cents and revenue of $9.23 billion.
Wall Street projects Starbucks to report its fifth consecutive quarter of same-store sales growth, with an estimated 6% increase driven mainly by its North American locations. This growth is supported by Starbucks' strategy of closing about 1% of its North American stores, roughly 250 cafes, to improve overall performance. The company expects to incur approximately $300 million in restructuring charges from these closures.
The earnings report follows Starbucks' official denial of rumors about acquiring Chipotle Mexican Grill. Industry analysts stated that such a merger could detract from Starbucks' ongoing turnaround efforts. Starbucks' stock price has increased approximately 24% this year, pushing its market capitalization near $119 billion.
This earnings report matters to investors because the company’s restructuring charges and same-store sales growth will directly influence Starbucks’ revenue and earnings trajectory in the near term.
Informational only, not financial advice. Content is AI-generated and may contain errors. How this works.
Our take
Opinion from the Newsstocks AI desk, not investment adviceWe think Starbucks is focused on improving profitability through store closures which should support same-store sales growth. However, the sizeable restructuring charges may offset some of the earnings gains. The upcoming earnings report will clarify the financial impact of these actions and confirm if the turnaround is gaining traction.
Key numbers
- Expected earnings per share
- 72 cents
- Expected revenue
- $9.23 billion
- Same-store sales growth estimate
- 6%
- Restructuring charges estimate
- $300 million
What could help
- Same-store sales growth is expected to continue for the fifth consecutive quarter.
What could hurt
- Restructuring charges around $300 million from store closures may weigh on earnings.
What to watch next
Starbucks will report its quarterly earnings after the market closes on Thursday.
The background
Companies report earnings to show their financial results from recent quarters. Same-store sales measure growth at existing locations, a key retail metric.
Questions readers ask
What earnings per share is Starbucks (SBUX) expected to report?
Analysts expect Starbucks to report earnings per share of 72 cents for the upcoming quarter.
How much revenue is Starbucks expected to generate in its next earnings report?
Starbucks is projected to report revenue of $9.23 billion for the quarter.
Why is Starbucks closing stores in North America?
Starbucks is closing about 1% of its North American stores, approximately 250 cafes, to improve overall business performance.
About Starbucks Corporation (SBUX)
Starbucks is the largest coffeehouse chain in the world, operating and licensing stores across dozens of markets.
The Consumer Discretionary sector covers retailers, automakers and leisure companies whose sales rise and fall with consumer confidence.
Earlier SBUX news
- Starbucks CEO Sells $58,800 in Common Stock
- Insight into Jim Cramer's recent stock buys including Starbucks
- Starbucks Declines Comment on Chipotle Takeover Reports
- Potential Starbucks and Chipotle M&A Raises Debt Concerns
- Starbucks Explores $41bn Acquisition of Chipotle
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