Starbucks shift supervisor Adan Miranda stands behind a plexiglass shield in a booth outside a store in Sacramento, CA on Thursday, May 21, 2020, wearing a face mask when serving customers a drink. doing.
Rich Pedroncelli | AP
Starbucks Quarterly sales reported Thursday were lower than expected as the return of Covid-19 in China weakened sales.
Global coffee chains have shared their 2022 forecasts to combat rising costs and the ongoing impact of the pandemic. The earnings outlook per share was below Wall Street’s forecast, but the earnings forecast was above expectations.
The company’s stock fell more than 4% in overtime trading.
Here’s a report from the company for the quarter ended October 3, compared to what Wall Street expected, based on an analyst survey by Refinitiv:
- Profit per share: Adjusted $ 1 vs. expected 99 cents
- Revenue: $ 8.1 billion vs. forecast $ 8.21 billion
Starbucks fourth-quarter net income was $ 1.76 billion, or $ 1.49 per share, up from $ 392.6 million, or 33 cents per share, in the year-ago quarter.
Excluding the profits from the sale of the Korean joint venture and the one-week extension of the reporting period, the coffee giant earned $ 1 per share, surpassing the 99 cents per share predicted by analysts surveyed by Refinitiv. ..
Net sales It increased 31% to $ 8.1 billion, below the expected $ 8.21 billion. Global comparable store sales increased 17%, below the Street Account estimate of 18.3%.
Same-store sales in the United States increased 22% in the quarter and 11% in two years. Customers spent an average of 3% more on transactions. The company’s loyalty program reported 24.8 million active members, an increase of 28% over the previous year. During the quarter, 51% of customers were Starbucks Rewards members.
McDonald’s, Domino’s pizza When Chipotle Mexican Grill Is one of the restaurant chains that said staffing challenges have hit US performance in the latest quarter. On Wednesday, Starbucks announced that it would raise employee wages at least twice in 2022, bringing a $ 15 hourly wage floor than previously shared.
Starbucks international market growth has slowed. Overseas same-store sales increased 3%.
In China, the company’s second-largest market, same-store sales fell 7%. Starbucks previously predicted that same-store sales in China would be flat this quarter. A city with a local Covid-19 case was hit hardest by the virus’s resurgence, but cafes that depended on tourism and travel were also damaged.
“At its peak in mid-August, about 80% of stores in China were affected by the pandemic,” CEO Kevin Johnson told analysts.
The company added 538 net new locations during the quarter. Starbucks has updated its store footprint, closed some cafes and opened new cafes suitable for mobile and takeaway orders.
Looking at the holiday season, Johnson said the company is preparing for record sales. Starbucks expects $ 3 billion to be added to gift cards.
In 2022, the coffee chain expects GAAP earnings per share to decline by 4% and adjusted earnings per share to increase by at least 10%. The earnings outlook is below Wall Street’s $ 3.73 forecast, which is more than 15% higher than in 2021. The company said it would hit its second-quarter lows with higher wages, but profits would hit the next quarter.
Starbucks expects global comparable store sales to be in the high single digits and net sales of $ 32.5 billion to $ 33 billion, surpassing Wall Street’s estimated $ 32.70 billion. The company plans to add about 2,000 new cafes worldwide. About three-quarters of these new locations will be built outside the United States.
The company also announced that it will resume its share buyback program during the first quarter.
Starbucks (SBUX) Fourth Quarter 2021 Revenues Exceeded Estimates
Source link Starbucks (SBUX) Fourth Quarter 2021 Revenues Exceeded Estimates