People wear protective face masks in front of Starbucks in Union Square as the city resumes Phase 4 of its reopening after restrictions were imposed in New York City on September 29, 2020 to slow the spread of the coronavirus.
Noam Galai | Getty Images
Starbucks On Thursday it was reported that US and China sales are recovering faster than expected from the coronavirus pandemic, and global sales in the same store are only shrinking 9%.
The company also released an outlook for fiscal 2021, forecasting a healthier year than analysts expected.
The shares of the stock rose more than 1% in after-hours trading.
The company reported, versus Wall Street’s expectations based on an analyst survey by Refinitiv:
- Earnings per share: 51 cents, adjusted compared to 31 cents expected
- Revenue: $ 6.2 billion versus $ 6.06 billion expected
Starbucks reported net income of $ 392.6 million, or 33 cents per share, for the fourth quarter, compared to $ 802.9 million, or 67 cents per share, a year earlier.
Without considering articles, the coffee chain earned 51 cents per share, exceeding the analysts surveyed by Refinitiv, 31 cents per share.
Net sales decreased 8% to $ 6.2 billion, beating expectations of $ 6.06 billion. Global sales in the same store decreased 9%. As customers spend more on their coffee orders, the number of transactions at Starbucks has decreased.
In the US, sales in the same store were down 9%. In China, the second largest market, sales in the same store only fell 3%.
Starbucks expects sales of $ 28 billion to $ 29 billion in fiscal 2021. The company forecasts adjusted earnings of 50 to 55 cents for the first quarter of business and a range of $ 2.70 to $ 2.90 for the full year. Starbucks expects global sales growth in the same store of 18% to 23% for the year, with US sales growing 17% to 22% and China sales growing 27% to 32%.
Starbucks expects 1,100 new net stores in fiscal 2021.
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