Starbucks Q4 Preview: Can the Back to Starbucks Plan Restore the Buzz?

Starbucks Corporation SBUX reports fourth-quarter fiscal 2025 results after the market closes on October 29. Analysts expect EPS of $0.56 on around $9.33 billion in revenue. The stock is down about 5% so far this year, lagging the broader consumer group.

The company heads into this report under pressure. In the previous quarter, sales edged up 4% to $9.5 billion, while EPS slipped to $0.49, reflecting margin pressure and investments tied to its Back to Starbucks plan. Management is now reshaping the business to regain momentum. Earlier this month, Starbucks announced a major restructuring. About 900 non-retail jobs will be cut, and the North America store count is expected to shrink by roughly 1% in FY2025.

Against this backdrop, investors will be watching U.S. same-store sales and international traffic, especially in China, where recovery has been uneven. Cost control and guidance on margin recovery will also be key given the recent step-up in spending on staffing and store upgrades.

Another question is whether the company's turnaround initiatives are beginning to stick. Starbucks has talked about faster service, simpler menus, and an improved in-store experience. The next test is whether those changes are translating into more customer visits and higher spend per visit.

Given the stock is lagging broader consumer names and facing macro headwinds, a solid print could help rebuild credibility around management's strategy.