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Starbucks Expected to Post Earnings Drop Due to Turnaround Plan - Barron's

1. Starbucks expects a 26% earnings drop to 67 cents per share. 2. Analysts forecast a 1% revenue decline to $9.3 billion. 3. CEO Niccol is focusing on improving store efficiency and experiences. 4. Increased capital investments may affect short-term profits. 5. Half of analysts recommend Buy, with a target price of $105.56.

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FAQ

Why Bearish?

Declining earnings and revenue expectations typically depress stock prices, as seen previously in market reactions to weak earnings forecasts.

How important is it?

Earnings performance directly correlates with stock price movements, making this a significant article for investor sentiment.

Why Short Term?

Immediate earnings reports can influence short-term trading dynamics, similar to past earnings releases affecting stock valuations swiftly.

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