Core Viewpoint - Investor optimism is declining ahead of Starbucks Corporation's fourth-quarter earnings, with growing caution regarding 2026 expectations [1] Earnings Expectations - Consensus earnings per share (EPS) have decreased by 37% over the past 12 months, with ongoing revision risks [2] - The analyst projects fourth-quarter 2025 EPS at 55 cents, slightly below the consensus of 57 cents [3] Same-Store Sales Projections - North America same-store sales are expected to decline by 1.0%, compared to the Street's estimate of a 0.5% decline [3] - International same-store sales are projected to increase by 2.0%, aligning with Street estimates [4] 2026 Guidance and Operating Costs - There is uncertainty regarding whether Starbucks will provide 2026 guidance during the fourth-quarter call, with expectations for a more comprehensive update at an Investor Day in early 2026 [3] - The analyst has lowered the 2026 EPS estimate to $2.34, which is the second-lowest among 31 analysts, compared to a consensus of $2.59 [4] Traffic and Competition - Management anticipates improved traffic from the "green apron service" initiative, which aims to enhance operational efficiency [4] - Despite projections for healthier 2026 traffic, it remains below consensus expectations due to increased competition and ongoing price-value concerns [5] Operating Expenses - Per-store operating expenses are expected to rise by approximately 7% in 2025, with mid-single-digit growth anticipated in 2026, including $500 million allocated for labor [5] - The analyst notes that the Street underestimates 2026 store operating expenses by about 2.5% [5] Stock Performance - Starbucks shares were trading down by 1.31% to $86.07 [6]