Starbucks CEO: 2Q brought ‘full sales recovery’ in U.S.; raises outlook
Starbucks Corp. reported better-than-expected second-quarter earnings and raised its full-year forecast for earnings and revenue as its business continues to recover from the pandemic and the chain positions itself for the “great human reconnection.”
The coffee giant reported adjusted earnings per share of $0.62 for the quarter ended March 28. Analysts had expected adjusted earnings per share of $0.53.
Net sales rose 11% to $6.7 billion, missing expectations of $6.8 billion. Global same-store sales grew by 15% compared to a decline of 10% from the year-ago period.
Comparable store sales in the U.S. increased 9%, driven by a 21% increase in average ticket, partially offset by a 10% decline in comparable transactions
Global comparable store sales increased 15%, driven by a 19% increase in average ticket, partially offset by a 4% decline in comparable transactions.
U.S. active membership in Starbucks Rewards loyalty program increased to 22.9 million during the quarter, up 18% year-over-year.
“I am very pleased with our progress to date in fiscal 2021, as our second quarter results demonstrated impressive momentum in the business with full sales recovery in the U.S.,” said Starbucks president and CEO Kevin Johnson. “Our strong results validate our ability to adapt to changes in our environment and the needs of our customers.”
Starbucks opened five net new stores in the second quarter, ending the period with 32,943 stores globally, of which 51% and 49% were company-operated and licensed, respectively. The net new store openings reflect the impact of approximately 300 U.S. and Canada company-operated store closures as part of the chain’s strategy, announced last June, to optimize our portfolio
For fiscal 2021, Starbucks now expects to earn $2.65 to $2.75 per share, up from its prior range of $2.42 to $2.62. It expects earnings on an adjusted basis of $2.90 to $3 per share, up from its previous outlook of $2.70 to $2.90 per share.
The company also raised its outlook for revenue to a range of $28.5 billion to $29.3 billion, up from a prior range of $28 billion to $29 billion.
“We have positioned Starbucks for the inevitable great human reconnection that we see unfolding in the U.S. and will propagate in every market around the world, where people once again connect with others face-to-face to heal, to belong, to reflect, to share and to celebrate,” Johnson said. “Starbucks was built for this moment, and as we celebrate our 50th anniversary, we remain confident in our ability to execute our ‘Growth at Scale’ agenda and unlock the full potential of the Starbucks brand.”