Starbucks to Report Q3 Earnings: What Lies Ahead for the Stock?

Starbucks Corporation SBUX is scheduled to report third-quarter fiscal 2025 results on July 29, 2025, after the closing bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 16.3%.Trend in Estimate Revision of SBUXThe Zacks Consensus Estimate for fiscal third-quarter EPS has remained unchanged at 46 cents in the past 30 days. The expected figure indicates a fall of 31.2% from the year-ago quarter’s 93 cents per share. The consensus mark for revenues is pegged at $9.29 billion. The metric implies a gain of 1.9% from the year-ago quarter’s figure.Factors Likely to Shape Starbucks’ Quarterly ResultsStarbucks’ fiscal third-quarter top line is likely to have increased year over year, driven by contributions from net new company-operated store openings. Continued menu innovation and targeted labor investments are expected to have supported demand and transaction growth during the quarter.Furthermore, ongoing investments in the Back to Starbucks strategy execution, various restructuring actions and supporting marketing activities are expected to have impacted the company’s third-quarter performance. However, the impact of the Back to Starbucks strategy might have remained limited in the near term, as changes across the U.S. store base are still underway.Despite its strong brand equity, Starbucks continues to face comparable store sales challenges affected by reduced customer traffic. Reflecting the ongoing challenges, our model predicts fiscal third-quarter comps to remain flat year over year.Starbucks Corporation Price and EPS Surprise Starbucks Corporation price-eps-surprise | Starbucks Corporation QuoteSBUX’s fiscal third-quarter margins might have remained under pressure due to inflationary costs related to labor, raw materials and supply-chain inefficiencies. While operational improvements are expected to have partially offset these pressures, investments in partner wages might have weighed on the company’s profitability. Heightened tariff exposure, especially on merchandise from China, is also likely to have added to the overall cost burden. Our model predicts total operating expenses in the fiscal third quarter to rise 10.7% year over year to $5.5 billion.What the Zacks Model Unveils for SBUXOur proven model does not conclusively predict an earnings beat for SBUX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.SBUX has an Earnings ESP of +1.20% and a Zacks Rank #4 (Sell) at present.Stocks Poised to Beat EarningsHere are some companies in the Zacks Retail-Wholesale sector, which, according to our model, have the right combination of elements to post an earnings beat.Restaurant Brands International Inc. QSR has an Earnings ESP of +0.68% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.QSR is expected to register a 12.8% year-over-year increase in earnings for the to-be-reported quarter. Restaurant Brands’ earnings beat the consensus mark in two of the trailing four quarters and missed on the other two occasions, with a negative average surprise of 0.3%.The Cheesecake Factory Incorporated CAKE currently has an Earnings ESP of +1.47% and a Zacks Rank of 3.CAKE’ earnings beat the consensus mark in each of the trailing four quarters, the average surprise being 15.1%. Cheesecake Factory’s earnings for the to-be-reported quarter are expected to decrease 2.8% year over year.Yum! Brands, Inc. YUM currently has an Earnings ESP of +1.34% and a Zacks Rank of 2.For the to-be-reported quarter, YUM’s earnings are expected to grow 7.4% year over year. YUM’s earnings beat the consensus mark in three of the trailing four quarters and missed once, the average surprise being 0.5%.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Starbucks Corporation (SBUX): Free Stock Analysis Report Yum! Brands, Inc. (YUM): Free Stock Analysis Report The Cheesecake Factory Incorporated (CAKE): Free Stock Analysis Report Restaurant Brands International Inc. (QSR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks