By Tess Stynes
Starbucks Corp. (SBUX) is scheduled to report its financial
results for the quarter ended in December after the market closes
Thursday. Here's what you need to know.
--EARNINGS FORECAST: Profit of 80 cents a share is the median of
estimates compiled by Thomson Reuters, compared with 71 cents a
share in the year-earlier quarter.
--REVENUE FORECAST: Wall Street analysts expect revenue of $4.8
billion, up from $4.24 billion.
--SHARE PRICE: Starbucks is trading down about 3% from its
all-time high of $84.20 last month. The stock has advanced 11% in
the past 12 months, leaving its shareholder returns roughly in line
with the S&P 500 for the period.
WHAT TO WATCH
--KEY EXECUTIVE PLANS LEAVE: Chief Operating Officer Troy
Alstead is set to take an indefinite leave of absence, starting
March 1. Unanswered questions about the planned break, include who,
if anyone, will fill Mr. Alstead's role as the coffee chain's
second in command and when he expects to return.
--HOLIDAY SALES: Analysts are likely to focus on Starbucks's
efforts to attract more customers to its U.S. cafes over the
holidays. Last year, Starbucks noticed that Americans in large
numbers turned to online ordering for holiday gifts, leaving
brick-and-mortar retailers suffering, including its cafes. This
year, in an effort to boost traffic during the holiday season,
Starbucks offered a chance to win free Starbucks coffee drinks for
30 years to customers who used gift cards.
--EXPANSION DRIVE: Starbucks executives have been discussing
initiatives to boost the seemingly ubiquitous coffee chain's sales
further, including plans aimed at drawing in customers later in the
day with other food-and-drink offerings. The company's strategy
also includes the addition of more locations domestically and
abroad; new categories such as tea stores; and a digital strategy
that aims to allow its cafes to handle more customers.
Write to Tess Stynes at tess.stynes@wsj.com
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