Starbucks Corp. (NASDAQ: SBUX) reported fiscal second-quarter results after markets closed Tuesday. For the quarter, the coffee giant said that it had $0.32 in earnings per share (EPS) and $6.0 billion in revenue, versus consensus estimates that called for $0.34 in EPS and $5.89 billion in revenue. The same period from last year had $0.60 in EPS and $6.31 billion in revenue.
Consolidated net revenues declined 5% from the prior year due to lost sales related to the COVID-19 outbreak. These lost sales include the effects of temporary store closures, modified operations, reduced hours and reduced customer traffic.
During the quarter, global comparable store sales decline 10%, driven by a 13% in comparable transactions, partially offset by a 4% increase in average ticket. This consisted of Americas and U.S. comparable store sales decreasing 3% and international comparable store sales decreasing 31%.
The company opened 255 net new stores in the second quarter, yielding 32,050 stores at the end of the quarter. Note that stores in the U.S. and China comprised 61% of the company’s global portfolio at the end of Q2, with 15,257 and 4,351 stores, respectively.
CEO and President Kevin Johnson commented:
People around the world are united around a common cause as we navigate the COVID-19 situation globally. We are very grateful for the heroic efforts of medical personnel, first responders, government officials and volunteers who are working tirelessly in the service of others. I am exceptionally proud of the thousands of Starbucks partners around the world who are safely serving customers and playing a positive role in every community we serve.
Shares of Starbucks closed Tuesday at $78.69, with a 52-week range of $50.02 to $99.72. The consensus analyst price target is $77.50. Following the announcement, the stock was initially down 2% at $77.31 in the after-hours session.
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