Kevin Johnson, CEO, Starbucks
Scott Mlyn | CNBC
Starbucks on Tuesday reported soaring cold drink sales in the United States, fueling an earnings and revenue beat for the company.
The company also narrowed its forecast for same-store sales growth for fiscal 2021.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.01 adjusted vs. 78 cents expected
- Revenue: $7.5 billion vs. $7.29 billion expected
Excluding items, Starbucks earned $1.01 per share, topping the 78 cents per share expected by analysts surveyed by Refinitiv.
Net sales rose 78% to $7.5 billion, beating expectations of $7.29 billion. Worldwide, same-store sales surged 73%. A year ago, the company’s global same-store sales plummeted 40% during the quarter as the global pandemic prompted in lockdowns in some regions.
In the U.S., Starbucks’ largest market, same-store sales climbed 83%. On a two-year basis, the market’s same-store sales rose 10%. Nearly three-quarters of the company’s drink sales came from cold beverages, like its Nitro cold brew.
Outside of the U.S., Starbucks’ same-store sales jumped 41%, fueled by 55% growth in customer traffic. China, the company’s second-largest market, reported same-store sales growth of 19%. A year ago, the country’s same-store sales fell 19%.
Starbucks narrowed its outlook for global same-store sales growth for fiscal 2021. It now expects worldwide same-store sales to rise 20% to 21%, compared with a prior range of 18% to 23%. It narrowed its U.S. same-store sales growth outlook to the higher end of its prior range of 17% to 22%. It now forecasts U.S. same-store sales growth of 21% to 22%.
This is a breaking news story. Please check back for updates.
