Starbucks earnings report reveals sharp decline in profit
- Starbucks is forecasting 64 cents per share in earnings amidst a challenging financial landscape.
- Company revenue is expected to rise 2% year-over-year to $9.3 billion, yet remains overshadowed by significant profit declines.
- Historical trends indicate that Starbucks stock often underperforms following earnings announcements, creating a challenging environment for investors.
In the United States, Starbucks stock is expected to undergo scrutiny as it prepares to announce its fiscal third-quarter earnings on July 29, 2025. Analysts predict earnings will be 64 cents per share, which represents a 31% decline compared to the previous year. Additionally, projected revenue is set at $9.3 billion, a modest 2% increase from the $9.11 billion recorded last year. These figures reflect ongoing challenges for the company, including the impact of rising labor costs and a decrease in same-store sales for the fifth consecutive quarter. Starbucks recently reported a profit drop of 50% in its Q2 results, which contributed to the company's decision not to provide fiscal guidance for 2025, highlighting a recalibration under new leadership. The overall market capitalization of Starbucks currently stands at $109 billion. Over the past five years, historical data shows that Starbucks stock has typically underperformed after earnings releases, with a median one-day decrease of 4.4%. This decreased performance trend emphasizes the concerns surrounding the company’s ability to recover from the current operational difficulties.