Starbucks raises 2021 forecast as US same-store sales growth returns to pre-pandemic levels
Starbucks’ president and CEO Kevin Johnson speaks during a press conference in Shanghai on August 2, 2018.
AFP | Getty Images
Starbucks on Tuesday reported mixed quarterly results and raised its full-year forecast for earnings and revenue.
Shares of the company dropped nearly 2% in extended 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: 62 cents adjusted vs. 53 cents expected
- Revenue: $ 6.7 billion vs. $ 6.8 billion expected
Starbucks reported fiscal second-quarter net income of $ 659.4 million, or 56 cents per share, up from $ 328.4 million, or 28 cents per share a year earlier.
Excluding items, the coffee chain earned 62 cents per share, topping the 53 cents per share expected by analysts surveyed by Refinitiv.
Net sales rose 11% to $ 6.7 billion, missing expectations of $ 6.8 billion. Global same-store sales grew by 15% as the company lapped a decline of 10% from the year-ago period.
US same-store sales rose 9%, signaling a return to pre-pandemic levels. A year ago, same-store sales in Starbucks’ home market fell 3% as lockdowns were implemented across the United States. Customers are buying larger coffee orders, sending the average ticket up 21%. Traffic, however, is still down by 10%.
In China, Starbucks’ second-largest market, same-store sales surged 91% as it faced comparisons to last year’s 50% plummet during the same period. Transactions in China soared 93% in the quarter, but average ticket fell 1%.
For all of fiscal 2021, Starbucks now expects to earn $ 2.65 to $ 2.75 per share, up from its prior range of $ 2.42 to $ 2.62 per share. It’s expecting earnings on an adjusted basis of $ 2.90 to $ 3 per share, up from its previous outlook of $ 2.70 to $ 2.90 per share.
The company also raised its full-year outlook for revenue to a range of $ 28.5 billion to $ 29.3 billion, up from a prior range of $ 28 billion to $ 29 billion. Fiscal 2021 includes a 53rd week, which Starbucks expects will add about $ 5 million in revenue.