Earnings Preview – Starbucks (SBUX)

Starbucks (SBUX) will be reporting their Q1 earnings after the bell today. This write-up will focus on three specific areas: North America, China, and its Rewards program.

Kicking it off with North America, the consensus among sell-side/buy-side is that we won’t be seeing any major setbacks as it relates to same store sales. As Oppenheimer states, the outlook for North America remains solid. As far as what analysts are modeling, UBS analyst Dennis Geiger has comps coming in at 17% and then 10% on a 2-year stack. While he expects staffing, supply chain challenges, and other macro pressure to show up as headwinds, he believes underlying customer demand is intact, with contribution from pricing, drive-thru, premium beverages, food attach, and digital. Meanwhile, Evercore ISI analyst David Palmer is also forecasting in-line S