A Starbucks store is seen in the Tom Bradley terminal at LAX airport in Los Angeles, California.
Lucy Nicholson | Reuters
Starbucks is expected to report fiscal first quarter earnings after the bell on Friday.
Here’s what Wall Street analysts polled by Refinitiv expect:
- Earnings per share: 77 cents expected
- Revenue: $8.78 billion expected
Shares of Starbucks have risen more than 12% in the past year, buoyed by investor optimism about the reopening of China and the persistence of US consumers’ coffee habits. Wall Street predicts the coffee giant will report same-store sales growth in North America of 10.1%, according to StreetAccount estimates.
Two spikes in strike activity during November and December by Starbucks workers combined did not dampen holiday sales, according to a Barclays research report. Nearly 280 Starbucks coffee company-owned has chosen to unionize on January 23, according to data from the National Labor Relations Board. Starbucks and the union have yet to agree on a contract for the newly merged locations.
But the main focus of investors will be on China, the company’s second largest market. The Chinese government dropped its zero-Covid policy, a long-term winning move for Starbucks sales there. New Covid cases are on the rise, which could reduce the company’s returns in the short term.
Last quarter, Starbucks said it projected growth of 10% to 12% and adjusted earnings per share growth of 15% to 20% for fiscal 2023.