• Funding
  • Investing
  • Lending
  • Insurance
  • Banking
  • Wealth
  • Fintech
  • Venture
  • Crypto
Subscribe
No Result
View All Result
  • Equity Funding
  • Stocks
  • Mutual Funds
  • Credit Cards
  • Loans
  • Insurances
  • Savings
  • Crypto Trading

Starbucks tops earnings estimates even as U.S. recovery hurt by Covid resurgence

CNBC NewsbyCNBC News
January 27, 2021

Starbucks on Tuesday reported that its U.S. same-store sales fell 5% during its fiscal first quarter after a surge of new Covid-19 cases led to harsher dining restrictions.

The company also announced that COO Roz Brewer will be leaving Starbucks at the end of February. People familiar with the matter told CNBC later Tuesday that she will become chief executive of Walgreens. Her responsibilities will be split among other members of Starbucks’ existing leadership team.

Shares fell about 1% in extended trading.

Here’s what the company reported for the quarter ended Dec. 27 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: 61 cents, adjusted, vs. 55 cents expected
  • Revenue: $6.75 billion vs. $6.93 billion expected

The company reported fiscal first-quarter net income of $622.2 million, or 53 cents per share, down from $885.7 million, or 74 cents per share, a year earlier.

Excluding items, the coffee giant earned 61 cents per share, topping the 55 cents per share expected by analysts surveyed by Refinitiv.

Net sales dropped 5% to $6.75 billion, falling short of expectations of $6.93 billion. Worldwide, same-store sales fell 5%. The company saw 19% fewer transactions during the quarter, but the average ticket jumped 17%.

In the U.S., same-store sales fell by 5%. The company’s recovery in its home market was hampered by another surge in Covid-19 cases as the temperatures grew colder. Same-store sales fell just 3% in October but slid to 8% by December.

On the bright side, the number of Starbucks Rewards members who have been active in the last 90 days rose 15% to 21.8 million people. Mobile orders represented a quarter of transactions, up from 17% before the crisis.

CEO Kevin Johnson said the company had a “very strong” holiday season. Starbucks gift card activations exceeded the company’s projections. He called the Irish Cream Cold Brew a “new holiday favorite.” The drink was unveiled in 2019 and follows the success of the Pumpkin Cream Cold Brew, which overtook the Pumpkin Spice Latte as the bestselling drink on the fall menu.

In China, Starbucks’ second-largest market, same-store sales turned positive for the first time since the health crisis started. Its same-store sales rose 5%, although transactions still declined compared with the same time a year ago.

The company opened 278 net new cafes during the quarter and now has a footprint nearing 33,000 locations.

Next quarter, Starbucks is forecasting U.S. same-store sales growth of 5% to 10%. January same-store sales are expected to turn positive after December’s downward slide, according to executives. In China, same-store sales are expected to nearly double. The company expects to earn 36 cents to 41 cents per share. It’s projecting earnings per share of 45 cents to 50 cents on an adjusted basis.

The company also raised its outlook for its fiscal 2021 earnings. It now expects earnings per share between $2.42 and $2.62, up from its prior forecast of $2.34 to $2.54.

CFO Pat Grismer said that Starbucks will be issuing a comprehensive update on its outlook for the fiscal year when it reports next quarter’s earnings. He cited the volatility stemming from the pandemic.

Read the full earnings report here.

Read The Original Article on CNBC News

Related Topics

Personal Finance

Manhattan apartment discounts may be ending soon as sales soar 73% in February

Personal Finance

Mark Cuban: Crazy NFT prices ‘will settle down’ over time, but the tech is here to stay

Prev Next

You May Like

Personal Finance

Manhattan apartment discounts may be ending soon as sales soar 73% in February

Personal Finance

Mark Cuban: Crazy NFT prices ‘will settle down’ over time, but the tech is here to stay

Investing

SpaceX denounces Justice Department’s subpoena in hiring practices investigation as ‘government overreach’

Personal Finance

New rules for self-employed and gig workers applying for PPP loans are out. Here’s what you need to know

Financial News

Wealth

Here’s why rich kids could get hundreds of billions from their parents if Biden wins

CNBC News
by CNBC News
Stock Market

Nasdaq proposal would require greater diversity on company boards

CNBC News
by CNBC News
Bitcoin

Bitcoin Mining Revenue Reaches a 2020 Yearly High of $21 Million per Day

Blockchain News
by Blockchain News
Stock Market

JPMorgan Chase pays $250 million penalty over weak controls in its wealth management division

CNBC News
by CNBC News
Stock Market

Job loss fears amid lockdowns will hit holiday shopping sales, market researcher Jim Bianco warns

CNBC News
by CNBC News
Bitcoin

Bitcoin’s Price to Rally Like Tesla Shares, BTC Could Surge Beyond Past Fundamentals

Blockchain News
by Blockchain News
Bitcoin

Why a GameStop-Inspired Mania Is Unlikely in China’s Stock Market

CoinDesk
by CoinDesk
Personal Finance

Retirees can get hosed on taxes. Here are some easy ways to reduce the hit

CNBC News
by CNBC News
Load More

© 2020, FinanceLane

Home | Contact | Terms and Conditions | Disclaimer | Privacy Policy

  • Home
  • News Feed
    • Equity Funding
    • Debt Funding
    • Crowdfunding
    • Real Estate Funding
  • Investing
    • Stocks
    • Bonds
    • Mutual Funds
    • Private Equity
    • Merging & Acquisition
    • Real Estate
  • Lending
    • Personal Loan
    • Business Loan
    • Credit Card
    • Microfinance
    • Peer-to-Peer Lending
  • Insurance
    • Life Insurance
    • Auto Insurance
    • Education Insurance
    • Health Insurance
  • Banking
    • Business Banking
    • Payments Bank
    • Investment Banking
    • Individual Banking
  • Wealth
    • Earning
    • Savings
    • Investments
    • Budgetting
    • Credit Management
    • Tax Planning
    • Retirement
  • Fintech
    • Alternative Financing
    • Payments
    • Asset Management
    • Digital Banks
    • Softwares
  • Venture
    • Startup Ecosystem
    • Merging & Acquisition
    • Equity Investing
    • Franchising
    • Business Offers
  • Fintech
    • Alternative Financing
    • Asset Management
    • Digital Banks
    • Softwares
    • Payments
  • Crypto
    • Crypto Investing
    • Crypto Trading
    • Crypto Coins
    • Bitcoin
    • Blockchain
    • DAPP
  • Subscribe
  • Contact
  • Login

© 2020 FinanceLane - Terms and Conditions | Disclaimer | Privacy Policy

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
← AMD beats, driven by game console and PC sales ← The ‘1%’ are the main drivers of climate change, but it hits the poor the hardest: Oxfam report
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.