Starbucks is set to report fiscal second-quarter earnings after the closing bell on Thursday.
The coffee chain is expected to post earnings of 53 cents per share on $5.9 billion in revenue, according to Thomson Reuters estimates.
Starbucks has struggled with sales in the U.S. for several quarters, as new beverage concoctions continued to fall flat with consumers and in-store merchandise remained on shelves unsold.
This quarter, same-store sales in the U.S. are expected to grow 1.8 percent, according to StreetAccount.
Here’s what Wall Street expects:
- Earnings: 53 cents per share, according to Thomson Reuters
- Revenue: $5.9 billion, according to Thomson Reuters
- Same-store sales: 1.8 percent growth in the U.S., according to StreetAccount
While global same-store sales have been positive in each of the last five quarters, the company has continued to miss analyst expectations for this metric by 70 basis points or more.
Global same-store sales are expected to rise 1.8 percent in the second quarter.
The coffee giant has been working on a number of initiatives to turn around these weak sales, including offering more cold beverages, which are now 50 percent of its business, and new lunch items to draw people into its cafes in the afternoon.
Investors will also be keen to learn if the incident in Philadelphia, in which two black men were arrested for trespassing after asking to use a Starbucks bathroom, has hurt sales. A video of the arrest went viral, and was followed by protests and calls for boycotts.
Starbucks management responded swiftly, meeting city officials and the men who were involved. The company also plans to shut its company-owed cafes for a seminar on racial bias on May 29. The event will likely result in a multimillion dollar hitfrom lost sales during the afternoon closure.
