By Connor Hart

Starbucks is expected to report fiscal second-quarter results after the market closes Tuesday. Here is what you need to know.

PROFIT: The coffee chain is expected to post a profit of $545.2 million, or 48 cents a share, according to analysts polled by FactSet. In the same quarter last year, Starbucks reported a profit of $772.4 million, or 68 cents a share.

REVENUE: Analysts modeled sales of $8.83 billion, up from $8.56 billion a year earlier.

SAME-STORE SALES: Comparable sales, which account for store openings and closings, are projected to fall 0.8%, compared with a decline of 4% in last year's quarter, according to analysts.

The stock has fallen 16% in the past three months and was recently trading at $84.48.

WHAT TO WATCH

--Consumers have likely been cutting back on coffee trips amid a tougher discretionary-spending backdrop. Baird analysts said in a research note that they expect mixed results and falling same-store sales in Starbucks's fiscal 2Q, citing current macroeconomic conditions that are impeding the chain's turnaround efforts.

--Brian Niccol has implemented a number of turnaround actions since taking over as the coffee chain's top executive in September, including slimming down menus, reducing discounts and restricting bathrooms to paying customers. Investors will be looking for updates about how consumers are responding to Niccol's "Back to Starbucks" plan.

--Commentary on tariffs and geopolitical tensions will be closely watched by investors. Starbucks purchases green coffee beans from multiple coffee-producing regions around the world, including China's Yunnan province. Look for any details regarding how new levies could affect the company's operations, as well as steps it is taking to mitigate impacts.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

April 28, 2025 12:08 ET (16:08 GMT)

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