Starbucks (SBUX) is set to report results for its fiscal fourth quarter on Wednesday after the market close, and investors are looking for signs of progress on the company’s turnaround efforts as CEO Brian Niccol enters his second year on the job.
Wall Street expects the company to report adjusted earnings per share of $0.55 on revenue of $9.34 billion, according to data from Bloomberg. This would mark a 31% decline in adjusted earnings and a 2.6% rise in sales over the prior year.
Same-store sales growth is also expected to remain lackluster, with analysts expecting no growth for US same-store sales, while sales in China are expected to rise by 2.2%. For the full year, Wall Street expects the company to report a 1.9% drop in US same-store sales and a 0.5% drop in China.
Starbucks stock fell about 1.2% on Wednesday ahead of the report. Year to date, the stock is down more than 7%, while the S&P 500 (^GSPC) is up more than 17% this year.
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This report comes after Starbucks announced plans to close unprofitable locations and cut corporate jobs, eliminating 900 non-retail roles and closing open positions as part of a $1 billion restructuring effort.
The quarter, which also included the return of its pumpkin spice latte (PSL) in late August, doesn’t seem to have brewed enough excitement from the Street, with expectations for a sluggish start to its new fiscal year.
“Visitation trends do not appear to have improved” in the current quarter, Stifel analyst Chris O’Cull wrote in a note to clients.
O’Cull added that signs of a same-store sales recovery, especially during the holiday season, will be “crucial for near-term share price performance.”
Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.