Starbucks investors are bracing themselves for the the coffee giant’s fiscal first-quarter earnings, which are set to be released after the closing bell on Thursday.
On Thursday, the company is expected to post earnings of 57 cents per share on $6.18 billion in revenue, according to Thomson Reuters estimates.
Overall same-store sales are expected to have grown 3 percent in the quarter, with same-store sales in the Americas expected to grow 3.2 percent, according to StreetAccount.
Starbucks hit the reset button in November on its targets for same-store sales and earnings growth. CEO Kevin Johnson said at the time that he was optimistic about Starbucks’ ability to meet and exceed the new targets.
The coffee chain said it expected long-term annual earnings-per-share growth of at least 12 percent, down from its previously forecast 15 to 20 percent. Meanwhile, annual global same-store sales were pegged at between 3 and 5 percent growth, while annual consolidated net revenue was expected to rise in the high-single digits.
Last January, Starbucks posted its lowest global same-store sales growth in eight years, sending shares down and leaving investors with questions about the company’s ability to succeed without its then-CEO Howard Schultz.
The coffee giant’s sales growth was hit hard in 2017 by slowing mall traffic, a shift to increased dining at home and hiccups with its rollout of mobile order and pay. While U.S. same-store sales have been positive, the company has missed analyst expectations in this metric by 70 basis points or more in each of the last four quarters.
