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Starbucks Prepares for Fiscal Q2 Report Amidst Strategic Changes

Key Takeaways

Starbucks is set to unveil its fiscal second-quarter results after the market closes on Tuesday. This marks the third report under the leadership of new CEO Brian Niccol, who took the helm in September. Analysts anticipate that quarterly revenue will show growth year-over-year for the first time in over a year.

Starbucks (SBUX) is anticipated to disclose its fiscal second-quarter results on Tuesday evening. This report is particularly significant as it falls under the oversight of Brian Niccol, the new CEO, who assumed his role in September.

Niccol has initiated a “Back to Starbucks” campaign aimed at revitalizing the brand, introducing a series of modifications that range from aesthetic shifts—such as baristas returning to the traditional practice of writing customer names on cups with Sharpies—to practical reforms, like the reinstatement of the condiment bar and a focus on ensuring that orders are fulfilled within four minutes. Earlier in February, the company announced plans to lay off 1,100 corporate employees to foster more agile operational teams.

Analysts forecast that Starbucks will report a year-over-year revenue increase for the first time in over a year, with a projected consensus of $8.81 billion, reflecting a 3% rise compared to the previous year, as per data from Visible Alpha. However, it is also estimated that net income may drop nearly 30% to approximately $550.75 million, or 48 cents per share.

In recent trading, Starbucks shares have fluctuated between gains and losses, with the stock down about 9% since the beginning of the year, underperforming relative to the S&P 500 Index.

Investors are keenly interested in how Starbucks will navigate the current tariff landscape. Many companies have adjusted their forecasts recently in light of economic volatility and have indicated possible price hikes due to increased import taxes.

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