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Analysts are weighing in after Starbucks Corp. (NASDAQ:SBUX) on Tuesday reported worse-than-expected preliminary fourth-quarter results and suspended its guidance for 2025. 

The Details: In a surprise move, Starbucks reported preliminary results for the fourth quarter showing that it expects consolidated net revenues to decline 3% and global comparable sales to fall 7%. Starbucks also said it anticipates earnings of 80 cents per share, down 25% year-over-year.

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KeyBanc Captial Markets analyst Eric Gonzalez said that though investors had braced for disappointing fourth-quarter results from Starbucks, they may not have been prepared for the "magnitude of the top- and bottom-line miss."

Gonzalez did express confidence in the leadership of new CEO Brian Niccol and pointed to his successful tenure as CEO at Chipotle Mexican Grill.

BofA Securities analyst Sara Senatore also highlighted Niccol's successful turnaround of Chipotle and see him as "well-suited" for a Starbucks turnaround. BofA Securities reiterated its Buy rating and $117 price target and said the Starbucks brand "remains fundamentally strong."

Stifel analyst Chris O'Cull echoed similar sentiments regarding the abilities of Niccol as CEO and said he is "zeroing in on the correct issues" in his "Back To Starbucks" strategy. Stifel maintained its Buy rating but lowered its price target from $110 to $105.

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Looking ahead, Goldman Sachs analysts said they will be watching for more details on the "Back to Starbucks" plan in the company's earnings call on Oct. 30 after the closing bell. Goldman Sachs specifically will listen for more details on the company's pricing strategy, key marketing message and required store-level investments needed to address staffing issues and removing bottlenecks.