A customer enters a Starbucks Coffee store on June 10, 2020 in San Rafael, California.
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Starbucks stock was dropping despite reporting better-than-expected earnings following Tuesday’s close.
Starbucks reported non-GAAP per-share earnings of $1.01 on $7.5 billion in revenue, a record. Analysts had forecast earnings per share of $0.77 on $7.3 billion in revenue. Despite beating consensus revenue and earnings targets, Starbucks stock is down 3.1%, to $122.10, in after-hours trading.
Driven by an 84% increase in same-store sales in America, the global coffee giant reported an overall increase in comparable-store sales of 73% relative to the third quarter last year. Indeed, brand loyalty remains strong, especially in the U.S. where 90-day active members of the Starbucks Rewards loyalty program increased 48% year-over-year.
In a statement, Starbucks CEO Kevin Johnson told investors “Starbucks delivered record performance in the third quarter, demonstrating powerful momentum beyond recovery. Our ability to move with speed and agility and to be out in front of shifting customer behaviors has helped further differentiate Starbucks, positioning us well for this moment.”
The strong results have prompted management to raise the company’s 2021 earnings per share outlook from $2.90-$3.00 to $3.20-$3.25.
That wasn’t good enough for the market.
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