Starbucks Prepares for Fiscal Q2 Earnings Announcement Amid Mixed Investor Sentiment

Seattle, Washington-based Starbucks Corporation (SBUX) operates as a roaster, marketer, and retailer of coffee, holding a market capitalization of $95.1 billion. This leading coffee chain provides its customers with coffee, tea, beverages, roasted whole beans, ground coffees, and an array of food products, including pastries and sandwiches. The company plans to release its fiscal Q2 earnings report for 2025 after the market closes on Tuesday, Apr. 29.

As this pivotal date approaches, analysts project that Starbucks will report earnings of $0.50 per share, reflecting a 26.5% decrease from $0.68 per share in the same quarter last year. Notably, SBUX has met or exceeded Wall Street’s earnings projections in three of the last four quarters and fell short once. In Q1, the company’s EPS of $0.69 surpassed forecasts by approximately 4.6%.

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For the full fiscal year of 2025, analysts are forecasting an EPS of $2.96, marking a 10.6% decline from $3.31 in fiscal 2024. However, they anticipate a recovery in 2026, with earnings expected to climb by 21.6% year-over-year to reach $3.60.

Over the past year, Starbucks shares have declined by 1.7%. In contrast, the S&P 500 Index ($SPX) has enjoyed a 6.6% rise, and the Consumer Discretionary Select Sector SPDR Fund (XLY) has gained 8.5% during the same period.

On April 15, Starbucks introduced new dress code regulations for its employees. Starting from May 12, baristas must wear solid black shirts and khaki, black, or blue denim bottoms under their iconic green aprons. The company aims to enhance the visibility of its green aprons and establish a consistent brand image. However, the updated policy has drawn criticism from employees, who argue it shifts focus away from more pressing issues like staffing shortages, fair labor practices, and guaranteed work hours. This backlash contributed to a 2.1% decline in the company’s stock price on the day of the announcement.

Despite these challenges, shares of SBUX surged 8.1% following the release of better-than-expected Q1 earnings on Jan. 28. Although revenue dipped slightly year-over-year to $9.4 billion, it still surpassed expectations by 1.1%. SBUX’s EPS of $0.69 exceeded the projected $0.66, though it represented a 23.3% decline from the previous year due to increased operational costs and a significant drop in net income from the North American segment.

Wall Street analysts maintain a cautiously optimistic view of SBUX’s stock, currently holding a “Moderate Buy” rating overall. Out of 32 analysts covering the stock, 16 recommend a “Strong Buy,” two advise “Moderate Buy,” 11 suggest “Hold,” one indicates a “Moderate Sell,” and two categorize it as “Strong Sell.” The mean price target for Starbucks stands at $104.80, suggesting a potential upside of 25.2% from current levels.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For further details, please view the Barchart Disclosure Policy here.

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