Kevin Johnson, CEO, Starbucks
Scott Mlyn | CNBC
Starbucks reported Tuesday that its sales in the same U.S. store fell 5% during its first fiscal quarter after a rise in new Covid-19 cases led to tighter dinner restrictions.
The company also announced that COO Roz Brewer will be leaving Starbucks at the end of February for a position at another public commercial company. Her responsibilities will be shared with other members of the existing management team.
Shares rose less than 1% in extended trading.
Here’s what the company said compared to Wall Street’s expectations, based on a survey of analysts by Refinitiv:
- Earnings per installment: 61 cents, adjusted, 55 cents expected
- Revenue: $ 6.75 billion vs. $ 6.93 billion expected
Without items, the coffee giant earned 61 cents per portion, surpassing the 55 cents per serving analyzed by Refinitiv analysts.
Total sales fell 5% to $ 6.75 billion, falling short of $ 6.93 billion. Globally, the company’s single-store sales fell 5%. The chain saw 19% fewer transactions in the quarter, but the average ticket jumped 17%.
In the US, sales of the same store fell 5%. The company’s dominance in their home market was hampered by another surge of new Covid-19 cases as the temperature got colder. The number of Starbucks Rewards members who have been active in the last 90 days rose 15% to 21.8 million people.
In China, Starbucks’ second largest market, sales in the same store turned for the first time since the health crisis began. Sales in the same store rose 5%, although business was still declining compared to the same period a year ago.
The company opened 278 clean new cafes in its quarter and now has a footprint of almost 33,000 spaces.
Next quarter, Starbucks predicts U.S. single-store sales growth of 5% to 10%. In China, sales in the same store are expected to nearly double. He plans to earn 36 cents to 41 cents per share. On a modified basis, it equates to earnings per share of 45 cents to 50 cents.