The Starbucks logo appears on a cup in a Starbucks store on October 29, 2021 in Marin City, California.
Justin Sullivan | Getty Images
Starbucks is expected to report its quarterly earnings after Tuesday.
Here’s what Wall Street analysts surveyed by Refinitive expect:
- Earnings per share: 80 cents expected
- Revenue: Expected $ 7.95 billion
Last quarter, the coffee giant said it was preparing for a record-breaking holiday sale. But that was before a wave of new Covid-19 cases in the U.S. caused by the omicron variant, led to a worsening work crisis and shortened store hours throughout the restaurant industry.
Still, analysts are convinced that the company was not affected too badly by the resurgence in US cases. StreetAccount estimates that Starbucks will report same-store sales growth of 17.3% in North and South America for its first-quarter results.
The company is likely to face questions about how it handles the union’s push from its U.S. company-owned cafes. As of Monday, 54 stores have registered for union elections. The pace of new applications to the National Labor Relations Board has accelerated after two cafes in Buffalo voted for union.
Outside the United States, the coffee giant faces even more challenges. China, the company’s second-largest market, reintroduced lockdowns in some areas as Covid cases rose during the quarter.
For the financial year 2022, Starbucks expects their GAAP earnings per share will fall by 4%, while the adjusted earnings per. share will rise by at least 10%. It also expects global sales in the same store to achieve high single-digit gains and net sales of $ 32.5 to $ 33 billion.
Shares in Starbucks have fallen 1% in the last 12 months, giving the company a market value of $ 113 billion.