Starbucks Corporation (SBUX - Free Report) is scheduled to report second-quarter fiscal 2024 results on Apr 30, after the closing bell. In the last reported quarter, the company recorded an earnings miss of 2.2%.
Q2 Estimates
The Zacks Consensus Estimate for earnings is pegged at 80 cents per share, indicating growth of 8.1% from the year-ago levels. In the past seven days, the consensus estimate for earnings has witnessed downward revisions by 1.3%. The Zacks Consensus Estimate for revenues is pegged at $9.15 billion, implying an increase of 4.9% from the year-ago level.
Factors to Note
SBUX’s results in the quarter are likely to be aided by unit expansion, solid improvement in China and upgraded product offerings. Starbucks is also benefiting from strong loyalty program. The company's focus on enhancing the Starbucks app, offering personalized ordering options and expanding delivery services continue to contribute to its digital growth.
Starbucks' Triple Shot Reinvention strategy is yielding positive results, driving margin expansion and operational efficiencies. The company continues to invest in store experience, product innovation and technology to elevate its brand and enhance customer engagement.
Solid comparable sales growth is expected to have benefited the top line in the quarter under discussion. Our model predicts North America and International comparable sales growth to increase 2.5% and 3% from the prior-year levels, respectively.
In second-quarter fiscal 2024, our model expects North America and International sales to be $6,814.1 million and $1,947.2 million, implying a 6.8% and 5% jump, respectively, from the year-ago actuals. Starbucks is gaining from a rise in transactions and average ticket growth. We expect Channel Development sales to increase 5.5% from the prior-year levels to $507.3 million.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Starbucks this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Starbucks has an Earnings ESP (the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) of -2.72%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Starbucks currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Wingstop Inc. (WING - Free Report) has an Earnings ESP of +4.60% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has risen 41.4% year to date. WING’s earnings beat estimates in each of the trailing four quarters, the average surprise being 21.3%.
Shake Shack Inc. (SHAK - Free Report) has an Earnings ESP of +3.33% and a Zacks Rank #3 at present.
Shares of SHAK have risen 34.3% year to date. SHAK’s earnings beat estimates in each of the trailing four quarters, the average surprise being 92.6%.
Restaurant Brands International Inc. (QSR - Free Report) has an Earnings ESP of +0.33% and a Zacks Rank of 3 at present.
Shares of QSR have lost 5.8% year to date. The company reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 10.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Starbucks Corporation (SBUX - Free Report) is scheduled to report second-quarter fiscal 2024 results on Apr 30, after the closing bell. In the last reported quarter, the company recorded an earnings miss of 2.2%.
Q2 Estimates
The Zacks Consensus Estimate for earnings is pegged at 80 cents per share, indicating growth of 8.1% from the year-ago levels. In the past seven days, the consensus estimate for earnings has witnessed downward revisions by 1.3%. The Zacks Consensus Estimate for revenues is pegged at $9.15 billion, implying an increase of 4.9% from the year-ago level.
Factors to Note
SBUX’s results in the quarter are likely to be aided by unit expansion, solid improvement in China and upgraded product offerings. Starbucks is also benefiting from strong loyalty program. The company's focus on enhancing the Starbucks app, offering personalized ordering options and expanding delivery services continue to contribute to its digital growth.
Starbucks' Triple Shot Reinvention strategy is yielding positive results, driving margin expansion and operational efficiencies. The company continues to invest in store experience, product innovation and technology to elevate its brand and enhance customer engagement.
Solid comparable sales growth is expected to have benefited the top line in the quarter under discussion. Our model predicts North America and International comparable sales growth to increase 2.5% and 3% from the prior-year levels, respectively.
In second-quarter fiscal 2024, our model expects North America and International sales to be $6,814.1 million and $1,947.2 million, implying a 6.8% and 5% jump, respectively, from the year-ago actuals. Starbucks is gaining from a rise in transactions and average ticket growth. We expect Channel Development sales to increase 5.5% from the prior-year levels to $507.3 million.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Starbucks this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Starbucks has an Earnings ESP (the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) of -2.72%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Starbucks currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Wingstop Inc. (WING - Free Report) has an Earnings ESP of +4.60% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has risen 41.4% year to date. WING’s earnings beat estimates in each of the trailing four quarters, the average surprise being 21.3%.
Shake Shack Inc. (SHAK - Free Report) has an Earnings ESP of +3.33% and a Zacks Rank #3 at present.
Shares of SHAK have risen 34.3% year to date. SHAK’s earnings beat estimates in each of the trailing four quarters, the average surprise being 92.6%.
Restaurant Brands International Inc. (QSR - Free Report) has an Earnings ESP of +0.33% and a Zacks Rank of 3 at present.
Shares of QSR have lost 5.8% year to date. The company reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 10.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Buy 5 Stocks BEFORE Election Day
Biden or Trump? Zacks is releasing a FREE Special Report, Profit from the 2024 Presidential Election (no matter who wins).
Since 1950, presidential election years have been strong for the market. This report names 5 timely stocks to ride the wave of electoral excitement.
They include a medical manufacturer that gained +11,000% in the last 15 years… a rental company absolutely crushing its sector… an energy powerhouse planning to grow its already large dividend by 25%... an aerospace and defense standout that just landed a potentially $80 billion contract… and a giant chipmaker building huge plants in the U.S.
Don’t Wait. Download FREE >>
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