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 COO Roz Brewer will leave Starbucks at the end of February to take a position at another publicly traded company. Her responsibilities will be divided among other members of the current leadership team.
Shares rose less than 1% in extended trades.
Here’s what the company reported compared to what Wall Street was expecting, based on an analyst survey by Refinitiv:
- EPS: 61 cents, revised, versus 55 expected cents
- Revenue: $ 6.75 billion versus $ 6.93 billion expected
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.