Group 1 - Starbucks is set to release its earnings report on Tuesday, with analysts expecting a 2% year-over-year revenue growth to reach $9.3 billion, showing an improvement from the previous year's growth rate [1] - The adjusted earnings per share (EPS) is anticipated to be $0.64, following a first quarter revenue of $8.76 billion, which was a 2.3% year-over-year increase but fell short of analyst expectations by 0.6% [1][3] - Over the past 30 days, analysts have downgraded revenue forecasts for Starbucks 12 times, indicating growing pessimism regarding the company's performance [3] Group 2 - Starbucks is implementing various initiatives to drive growth, including the "Return to Starbucks" strategy aimed at winning back customers and reassuring investors, along with commitments to increase in-store seating and promote internal promotions [3] - The company faces significant pressures from high labor costs, intense competition, and an increase in consumer choices, which are squeezing profits and putting pressure on its high valuation [3][4] - Oppenheimer has lowered its earnings expectations for Starbucks, citing poor sales and increased competition, projecting EPS of $2.41 in 2025 and $2.81 in 2026, both below Wall Street's expectations [3] Group 3 - Following a disappointing first quarter where same-store sales declined by 1% globally and in North America, analysts express concerns about slow customer traffic and ongoing demand challenges potentially persisting until 2026 [4] - Despite increasing in-store staff to enhance service efficiency, analysts attribute the performance slowdown to intensified competition, market saturation, and changing consumer values [4] - UBS highlights that Starbucks' transformation plan, management execution, and store operation reforms could support a recovery, although global economic slowdown and inflation may weaken consumer demand for premium coffee [4]