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published in Blogs
Oct 31, 2021
Starbucks (SBUX, $106.07) posted Q4 results

Starbucks (SBUX, $106.07) posted Q4 results

Starbucks posted earnings that beat analysts’ expectations. However, sales growth in China was disappointing.

The coffee bar chain’s adjusted earnings came in at $1 per share, compared to the 99 cents expected by analysts polled by Refinitiv.

 Revenue of $8.1 billion fell a bit shy of the $8.21 billion expected.  

U.S. same-store sales rose +22% in the quarter. Customers spent 3% more on transactions on average. The company’s loyalty program had 24.8 million active members, up +28% year-over-year.

International same-store sales increased +3%. In China, Starbucks’ second-largest market, same-store sales fell by -7%.

Looking ahead, the company is projecting its GAAP earnings per share to decrease by -4%. It expects its adjusted earnings per share to rise by at least +10% for fiscal 2022, compared to analysts’ estimate of more than 15% higher than fiscal 2021. According to the company, earnings will be at their lowest point in the fiscal second quarter owing to wage hikes, but profits will reach their peak by the next quarter.

Starbucks has projected  global same-store sales in the high single digits and net sales of $32.5 billion to $33 billion, above Wall Street’s estimates of $32.07 billion.

 The company plans to add approximately 2,000 net new cafes globally. Roughly three-quarters of those new locations are expected to be located outside of the U.S.

Starbucks announced it would resume its share buyback program during its fiscal first quarter.

 

The coffee bar chain’s adjusted earnings came in at $1 per share, compared to the 99 cents expected by analysts polled by Refinitiv.

 Revenue of $8.1 billion fell a bit shy of the $8.21 billion expected.  

U.S. same-store sales rose +22% in the quarter. Customers spent 3% more on transactions on average. The company’s loyalty program had 24.8 million active members, up +28% year-over-year.

International same-store sales increased +3%. In China, Starbucks’ second-largest market, same-store sales fell by -7%.

Looking ahead, the company is projecting its GAAP earnings per share to decrease by -4%. It expects its adjusted earnings per share to rise by at least +10% for fiscal 2022, compared to analysts’ estimate of more than 15% higher than fiscal 2021. According to the company, earnings will be at their lowest point in the fiscal second quarter owing to wage hikes, but profits will reach their peak by the next quarter.

Starbucks has projected  global same-store sales in the high single digits and net sales of $32.5 billion to $33 billion, above Wall Street’s estimates of $32.07 billion.

 The company plans to add approximately 2,000 net new cafes globally. Roughly three-quarters of those new locations are expected to be located outside of the U.S.

Starbucks announced it would resume its share buyback program during its fiscal first quarter.

 

Related Tickers: SBUX