08:50 AM EDT, 10/20/2025 (MT Newswires) -- Starbucks ( SBUX ) is poised to have a "modestly negative" fiscal Q4 in US, while company-wide improvement continue to push out, Morgan Stanley said in a Q4 results preview note on Monday.

For Q4, Morgan Stanley expected same store sales in US of -1%, compared to 0% prior and Wall Street estimate of -0.3%. International same store sales were expected to be +2%, while China same store sales were poised to be +2% compared to Wall Street view of 2.6%.

Morgan Stanley further said it now expects Q4 earnings per share of $0.56 compared to $0.61 previously, with an operating margin of 10.3%.

Analysts at Morgan Stanley further said it did not expect Starbucks ( SBUX ) to give its guidance for the fiscal year, but may provide some "directional comments" for the quarter ahead. It modelled a full year EPS of $2.57 compared to $2.73 prior, and cited weakness from labor investments and coffee cost pressure this year.

Starbucks ( SBUX ) is expected to release its fiscal Q4 results on Oct. 29.

The firm rated Starbucks ( SBUX ) as overweight and raised its price target to $105 from $103.