Justin Sullivan | Getty Images News | Getty Images
A new flat plastic lid that does not need a straw is shown on a cup of Starbucks iced tea in Sausalito, California.
Starbucks is set to report earnings after the market closes Thursday, amid slowing same-store sales growth and staunch competition from the likes of Dunkin’ and McDonald’s.
Here’s what analysts are expecting for its fiscal fourth quarter, according to average estimates compiled by Refinitiv:
- Earnings per share: 60 cents
- Revenue: $6.27 billion
- Same-store sales: up 2.3 percent globally
For about two years, Starbucks has been in a funk. While the company’s same-store sales have been positive, investors have been looking for faster growth. Their disappointment has been reflected in its stock. Shares are up only about 2 percent since January.
Starbucks was once at the forefront of the coffee industry, offering upscale espresso drinks and easy ordering through a sleek mobile app. Now, competitors such as Dunkin’ and McDonald’s are offering up similar beverages at a fraction of the cost and have launched their own digital platforms.
Investors will be keen to see if Starbucks’ push to offer more cold beverages and new lunch items drew customers into its cafes during the fourth quarter. Forecasts are calling for same-store sales to have risen 2.3 percent globally, according to Refinitiv.
Shareholders will also be interested in how Starbucks’ first Italian location, its Milan Roastery, is faring. Starbucks received a nice boost from the opening of its Shanghai Roastery last year, which was bringing in about $64,000 a day in the weeks after its opening and remains a popular destination for coffee lovers.