Starbucks sales drop less than expected as US and Chinese markets rebound from pandemic

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People wear face masks outside Starbucks in Union Square as the city continues with Phase 4 of the reopening following restrictions imposed to slow the spread of the coronavirus on September 29, 2020 in New York City.

Noam Galai | Getty Images

Starbucks reported Thursday that sales in the United States and China are recovering from the coronavirus pandemic faster than expected, helping global same-store sales decline by just 9%.

The company also released a outlook for fiscal 2021, forecasting a healthier year than analysts expected.

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Here’s what the company reported compared to what Wall Street expected, based on an analyst survey by Refinitiv:

  • Earnings per share: 51 cents, adjusted, vs. 31 cents expected
  • Revenue: $ 6.2 billion versus $ 6.06 billion expected

Excluding items, the coffee chain gained 51 cents per share, exceeding the 31 cents per share expected by analysts polled by Refinitiv.

Net sales fell 8% to $ 6.2 billion, beating expectations of $ 6.06 billion. Global comparable store sales fell 9%. As customers spend more on their coffee orders, Starbucks has seen the number of transactions drop.

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In the United States, same-store sales were down 9%. In China, its second-largest market, same-store sales fell just 3%.

In fiscal 2021, Starbucks expects revenue of $ 28 billion to $ 29 billion. The company is forecasting adjusted earnings of 50 cents to 55 cents for the first quarter of the year and a range of $ 2.70 to $ 2.90 for the full year. Starbucks expects global same-store sales growth of 18% to 23% for the year, with US comparable store sales to increase 17% to 22% and China comparable store sales of 27% to 32%.

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Starbucks expects 1,100 net new stores in fiscal 2021.

This is the latest news. Please come back for updates.

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