Starbucks (SBUX) Q3 2023 earnings

Starbucks is expected to report its fiscal third-quarter earnings after the bell Tuesday.

Here’s what Wall Street analysts surveyed by Refinitiv are expecting:

• Earnings per share: 95 cents expected
• Revenue: $9.29 billion expected

All attention is on Starbucks’ stores in China, its second-largest market. China’s zero Covid policy hurt the coffee giant’s sales in recent months even as other markets bounced back from the pandemic. Beijing began rolling back the strict policy in December, but the economy is still recovering.

Other companies have posted lackluster sales in China for the quarter ended June 30. Yum China, which operates the market’s KFC and Pizza Hut restaurants, reported quarterly revenue that fell short of Wall Street’s estimates on Monday. And Tide detergent maker Procter & Gamble said sales in the greater China region were weaker than expected during its latest quarter.

In February, Starbucks’ then-CEO Howard Schultz said the company’s same-store sales in China would start growing again in the second half of its fiscal 2023. But Wall Street has grown skeptical — and concerned about the company’s full-year outlook.

Starbucks is projecting revenue growth of 10% to 12% and adjusted earnings-per-share growth on the low end of 15% to 20%.

The company’s shares have risen just 1.5% this year, giving the company a market value of $115 billion.