The ornate art decor of the Starbucks coffee chain in Xujiahui district attracts customers’ attention in Shanghai, China, May 12, 2021.
Costfoto | Barcroft Media | Getty Images
Starbucks is expected to report its fiscal fourth-quarter earnings after the bell on Thursday.
Here’s what Wall Street analysts surveyed by Refinitv are expecting:
- Earnings per share: 72 cents expected
- Revenue: $8.31 billion expected
In September, the Seattle-based coffee giant raised its long-term forecast, projecting earnings per share growth of 15% to 20% annually over the next three years. The rosy outlook came as Starbucks shuffled its C-suite and shared a broad reinvention plan to adapt to changing consumer and employee needs.
Interim CEO Howard Schultz plans to remain at the helm of the company until the spring. Incoming CEO Laxman Narasimhan will take the reins in April after spending six months learning about Starbucks. So far, investors have had relatively little exposure to Narasimhan, who has conducted a few media interviews since taking the job and made a short appearance at the company’s investor day in September.
Despite recession fears, Starbucks and Wall Street appear optimistic about consumers’ willingness to spend on coffee. For the company’s fiscal 2023, analysts are expecting earnings per share growth of 16% and revenue growth of 11%. Schultz said last quarter that the chain hasn’t seen any changes to consumer behavior yet.
Shares of Starbucks have fallen nearly 28% this year, dragging its market value down to $97.11 billion.