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Starbucks beats earnings estimates

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Miguel A. Rodriguez
Miguel A. Rodriguez
27 January 2021
The largest coffeehouse chain in the world reported mixed fiscal first-quarter 2021 figures

Starbucks topped the 55 cents earnings per share expected in the past quarter, the figures coming in at 61 cents per share. On the other hand, its revenue fell short of the $6.93 billion mark forecasted as they came in at $6.75 billion.

At a global level, the company’s same-store sales fell 5%. The same applies to the US, as the recovery was hampered by the resurgence in COVID-19 case. In December alone, the same-stores sales fell 8%. But in China, the same-store sales were positive for the first time since the pandemic started, reporting a 5% increase.

However, the number of Starbucks Rewards members who made purchases in the last 90 days went up 15%, reaching 21.8 million. At the same time, the number of mobile orders was up 17% compared to the pre-pandemic figures.

For the next quarter, Starbucks expects its US sales to grow as much as 10%, and in China to double. The EPS is seen at a high of 41 cents. For the whole fiscal 2021, the EPS ranges between $2.42 and $2.62.

Following the news, Starbucks stock price closed 1.20% higher.

Source: cnbc.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.