Starbucks sales fall less than expected as U.S. and China markets rebound from pandemic
- Starbucks topped analysts' earnings and revenue estimates for its fiscal fourth quarter.
- The chain reported that its two largest markets, the U.S. and China, are rebounding from the pandemic more quickly than expected.
- Starbucks also released an outlook for fiscal 2021, predicting stronger growth than analysts' forecasts.
Starbucks on Thursday reported that sales in the U.S. and China are recovering from the coronavirus pandemic more quickly than expected, helping global same-store sales shrink just 9%.
The company also released an outlook for fiscal 2021, projecting a healthier year than expected by analysts.
Shares of the stock rose more than 1% in after-hours trading.
Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: 51 cents, adjusted, vs. 31 cents expected
- Revenue: $6.2 billion vs. $6.06 billion expected
Starbucks reported fiscal fourth-quarter net income of $392.6 million, or 33 cents per share, down from $802.9 million, or 67 cents per share, a year earlier.
Excluding items, the coffee chain earned 51 cents per share, beating the 31 cents per share expected by analysts surveyed by Refinitiv.
Net sales dropped 8% to $6.2 billion, topping expectations of $6.06 billion. Global same-store sales fell 9%. While customers are spending more on their coffee orders, Starbucks saw the number of transactions fall.
In the United States, same-store sales fell 9%. In China, its second-largest market, same-store sales declined by just 3%.
In fiscal 2021, Starbucks expects revenue of $28 billion to $29 billion. The company forecasts adjusted earnings of 50 cents to 55 cents for the fiscal first quarter and a range of $2.70 to $2.90 for the full year. Starbucks expects global same-store sales growth of 18% to 23% for the year, with U.S. same-store sales forecast to increase 17% to 22% and China same-store sales growth of 27% to 32%.
Starbucks anticipates 1,100 net new stores in fiscal 2021.
Read the full earnings report here.
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