Starbucks is expected to report fiscal second-quarter revenue of approximately $9.20 billion and adjusted EPS of $0.43, while shares currently trade around $98.67, roughly 6% below the consensus analyst price target of $104.75.
Investors are primarily focused on U.S. comparable store sales as the definitive litmus test for CEO Brian Niccol's "Back to Starbucks" operational turnaround strategy.
Markets are also bracing for updates regarding the recently closed China joint venture with Boyu Capital, which is expected to transition the region toward a higher-margin licensing model.
Analysts are looking for this quarter to mark a pivotal inflection point for operating margins, which have faced eight consecutive quarters of year-over-year contraction due to elevated labor costs and coffee inflation.