On November 3, investors will find out if Starbucks's (SBUX) domestic business is growing as fast as the company has said it would just last month.
Starbucks management has told investors that comps would accelerate toward the 5% level in its fiscal fourth-quarter, which would be in line with consensus estimates. William Blair analyst Sharon Zackfia, who rates Starbucks outperform, said 4% is already priced into the stock, but with shares having come under pressure in recent months, a 3% or 6% figure would be a "real surprise."
Shares of Starbucks have gained 10% since the start of the year and 15% over the past year, as investor concerns about slowing growth have raised questions.
Seattle-based Starbucks has depended on strong same-stores-sales growth, as it continues to expand its retail footprint. It's reinvesting back in its business with initiatives like raising worker compensation, adding new products and innovating, particularly in technology, where its Starbucks app is consistently cited as a leader in mobile pay technology.
On this front, RBC Capital Markets analyst David Palmer wrote that he will be looking to see if the company's recently announced deal with Chase Visa will "help re-accelerate digital loyalty transactions." Palmer has a $64 price target and a outperform rating on Starbucks.Analysts surveyed by Yahoo! Finance expect Starbucks to earn 55 cents a share on $5.68 billion in revenue.
These three ETFs may benefit if investors like what the Seattle-based coffee maker has to say about the past 90 days.