Starbucks traffic on uptrend in 2023, analyses indicate
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Starbucks Corporation (NASDAQ:SBUX) could be poised to beat comparable sales expectations in an earnings report due next week as recent analyses suggest foot traffic trends appear positive. 

 Per Placer.ai, traffic to both Dunkin Donuts and Starbucks (SBUX) have rebounded into 2023 as consumers re-upped caffeine consumption. Sales of cold drinks have spiked across many chains as temperatures have begun to rise into the month of April as well, per the analysis.

âStarbucks, which experienced a monthly year-over-year (YoY) visit gap ranging from 6.4% to 10.0% throughout the Q4 2022, saw foot traffic begin to pick up in the first quarter of 2023,â the data provider explained. âWhile some of the January and February YoY visit growth may be attributable to the Omicron-induced slump of early 2022, the positive trend continued into March and early April.â

Baird analyst David Tarantino offered a similar take, with channel checks suggesting the potential for âmuch better-than-modeled comps in both the U.S. and China.â He added that EPS for the quarter may surprise to the upside as well.

Nonetheless, he maintained a Neutral rating given caution that consumers could begin to tighten belts as macroeconomic conditions deteriorate.

âWe would view the China upside as a âpull-forwardâ of the recovery we have already assumed in F2024 estimates, and we still see risk that traffic performance for the U.S. business could slow in 2H23 amid a more challenging macro backdrop, a dynamic that ultimately could contribute to less positive investor sentiment on the shares,â Tarantino cautioned. 

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