Starbucks Is Set To Report Earnings, in Test of Turnaround Plan’s Progress

Starbucks (SBUX) is slated to report fiscal second-quarter results after the bell Tuesday, marking the coffee chain’s third report under new CEO Brian Niccol, who took over the role in September.

Niccol’s “Back to Starbucks” turnaround campaign has involved a whirlwind of changes, from the aesthetic (baristas are once again writing names on coffee cups with Sharpies) to the practical (the condiment bar has returned and Niccol has put an emphasis on getting orders filled within four minutes). In February, Starbucks said it would lay off 1,100 corporate employees to create “smaller, more nimble teams.”

Analysts expect Starbucks to report year-over-year revenue growth for the first time in more than a year, with a consensus forecast of $8.81 billion, up 3% from a year ago, according to Visible Alpha. Still, net income is projected to decline nearly 30% to $550.75 million, or 48 cents per share. 

Shares of Starbucks wavered between gains and losses in recent trading Tuesday, and have lost close to 9% since the start of the year, slightly underperforming the S&P 500. 

Investors will likely be watching closely how Starbucks addresses the current tariff environment. Several companies have pulled their outlooks in recent weeks amid economic uncertainty, and suggested they could raise prices in response to import taxes.