Kevin Johnson, CEO of Starbucks
Scott Mlyn | CNBC
Starbucks Corporation reported on Tuesday that same-store sales in the United States fell 5% during the first quarter of the fiscal year after an increase in new Covid-19 cases led to tighter restrictions on eating.
The company also announced that its chief operating officer, Rose Brewer, would leave Starbucks at the end of February to become the CEO of another publicly traded company. Her responsibilities will be divided among other members of the current leadership team.
The shares have fallen about 1% in extended trading.
Here’s what the company reported for the December 27 quarter compared to what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- EPS: 61 cents, revised, versus 55 expected cents
- Revenue: $ 6.75 billion versus $ 6.93 billion expected
The company reported net income of $ 622.2 million, or 53 cents per share, in the first quarter of the fiscal year, down from $ 885.7 million, or 74 cents a share, the previous year.
Excluding items, the coffee giant gained 61 cents per share, exceeding the 55 cents a share analysts surveyed in the Refinitiv poll had forecast.
Net sales decreased 5% to $ 6.75 billion, below expectations of $ 6.93 billion. Globally, the company’s same store sales are down 5%. The chain saw 19% less transactions during the quarter, but the average ticket jumped 17%.
In the United States, same store sales are down 5%. The company recovered in its home market through another wave of new Covid-19 cases as temperatures soared. The number of Starbucks Rewards members who have been active in the last 90 days increased by 15% to 21.8 million people.
In China, Starbucks’ second largest market, same store sales turned positive for the first time since the health crisis began. Same store sales are up 5%, although transactions have remained down compared to the same time last year.
The company opened 278 new coffee shops during the quarter, and now has a footprint close to 33,000 locations.
In the next quarter, Starbucks expects same-store sales in the US to grow 5% to 10%. In China, the same store sales are expected to roughly double. It expects to earn 36 cents for 41 cents per share. On a modified basis, it expects earnings per share of 45 cents to 50 cents.
The company has also raised its 2021 earnings forecast. It now expects earnings per share between $ 2.42 to $ 2.62, up from its previous forecast of $ 2.34 to $ 2.54.