STREAMING NOW: Watch Now

Starbucks faces Wall Street after race crisis

Starbucks will face Wall Street Thursday for the first time since it was embroiled in a PR crisis over the arrests of...

Posted: Apr 26, 2018 3:17 PM
Updated: Apr 26, 2018 3:17 PM

Starbucks will face Wall Street Thursday for the first time since it was embroiled in a PR crisis over the arrests of two black men at a Philadelphia store.

Two weeks ago, Rashon Nelson and Donte Robinson were arrested at Starbucks for trespassing. The two men did not order anything, but they asked to use the bathroom while they waited for a meeting. A white store employee called 911 minutes after they arrived.

Video of the arrest went viral, sparking protests and calls for boycotts. Starbucks CEO Kevin Johnson publicly apologized for the arrest and flew to Philadelphia to meet privately with Nelson and Robinson. Johnson and top Starbucks officials, including former chief executive Howard Schultz, remained in Philadelphia for days to meet with religious and community leaders in the city.

Related: Starbucks CEO on arrests at Philadelphia store: 'They didn't deserve that'

The store employee who called police is no longer with the company. Starbucks has not disclosed the terms under which she left.

Starbucks won praise for its decision last week to close its 8,000 company-owned stores in the United States for one afternoon on May 29 to provide racial bias training to about 175,000 workers. The training will be developed with guidance from experts including former Attorney General Eric Holder and Sherrilyn Ifill, the president of the NAACP Legal Defense and Education Fund.

Related: Starbucks has a bold plan to address racial bias. Will it work?

Analysts expect Starbucks to report $5.9 billion in sales for its quarter from January to March, up from $5.3 billion at the same time last year.

The costs from protests and the May 29 training won't show up until next quarter, but analysts will probably grill Starbucks on how much they expect to lose in sales from the closure and whether Starbucks' reputation has taken a hit from the national uproar. Wall Street may zero in on the impact in the Philadelphia area, some analysts believe.

Related: How major companies handle and botch public relations crises

Analysts will also watch how much Starbucks' sales are growing and whether the chain is attracting new customers at later hours of the day. Last quarter, Starbucks reported sluggish growth at stores that have been open for at least a year because of a subpar holiday lineup.

Starbucks' stock is down 3% since the arrests.

The chain hopes to replicate Facebook's performance following its PR crisis over a massive data scandal.

Facebook shares popped 7% after trading hours Wednesday after the company said it reversed a decline in daily active users in the United States and Canada. Facebook posted nearly $12 billion in revenue for the first three months of 2018, up nearly 50% from the same period a year ago.

-CNNMoney's Paul R. La Monica and Seth Fiegerman contributed to this story.

New York Coronavirus Cases

County data is updated nightly.

Cases: 2382450

Reported Deaths: 54983
CountyCasesDeaths
Kings31801110729
Queens30525510139
Suffolk2271813515
Nassau2063723251
Bronx2016276692
New York1612914603
Westchester1406262328
Erie988711881
Richmond855581903
Monroe778961155
Orange54422887
Rockland50818768
Onondaga45732713
Dutchess33716484
Albany28365368
Oneida25714546
Niagara22094382
Broome21664385
Saratoga18388187
Ulster16310271
Schenectady15251215
Rensselaer13276154
Putnam1180896
Chautauqua10909156
Oswego9588101
Chemung9021145
St. Lawrence8864115
Ontario850797
Steuben8342157
Cayuga7907100
Sullivan778781
Jefferson744271
Wayne693978
Cattaraugus671096
Genesee6045129
Herkimer5989117
Tompkins592659
Clinton565534
Madison538697
Fulton529897
Livingston516366
Montgomery5076133
Cortland481170
Warren468476
Columbia4632108
Tioga438567
Chenango416886
Otsego416251
Allegany400092
Greene393883
Washington392662
Wyoming390154
Orleans361184
Franklin351216
Lewis317736
Delaware305640
Seneca246759
Schoharie207220
Essex193429
Yates139626
Schuyler127716
Hamilton4073
Unassigned13436
Out of NY0288
Utica
Mostly Cloudy
71° wxIcon
Hi: 74° Lo: 61°
Feels Like: 71°
Oneonta
Cloudy
69° wxIcon
Hi: 74° Lo: 64°
Feels Like: 69°
Herkimer
Mostly Cloudy
71° wxIcon
Hi: 76° Lo: 60°
Feels Like: 71°
Old Forge
Partly Cloudy
71° wxIcon
Hi: 73° Lo: 61°
Feels Like: 71°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
NEW Game Day Deals each week
Follow the 2021 Go the Distance Team - sponsored by Gilroy Kernan & Gilroy
Chapter Photofacial Therapy Giveaway
Looking for work or looking to hire? Check out the WKTV Job Fair!
Saluting Those Who Are Proud 2 Serve