The company’s loyalty program, digital capabilities and strategic partnerships are also expected to help drive growth in the quarter. Starbucks’ addition of new stores will aid in expanding its footprint and boosting results. The company has targeted around 2,000 new store openings in 2019.
However, the weakness seen in the EMEA and Channel Development segments is expected to continue in the fourth quarter as well. Starbucks also faces stiff competition from Luckin Coffee (NASDAQ: LK) and Coca-Cola’s (NYSE: KO) Costa Coffee.
Also read: Starbucks Q3 2019 Earnings Conference Call Transcript
In the third quarter of 2019, Starbucks topped revenue and earnings expectations. Revenue grew 8% year-over-year to $6.8 billion while adjusted EPS rose 26% to $0.78.
For fiscal year 2019, Starbucks has guided for revenue growth of around 7% with global comparable store sales growth of about 4%. The company expects GAAP EPS of $2.86 to $2.88 and adjusted EPS of $2.80 to $2.82.
Last month, the stock saw a dip due to a weaker-than-expected earnings forecast for fiscal year 2020. Starbucks expects FY20 EPS to be below its ongoing growth model of 10%.
Starbucks’ shares have gained 22% thus far this year. The stock was trading in positive territory during afternoon hours on Monday.