Starbucks Corp. (NASDAQ: SBUX) reported fiscal first-quarter financial results after markets closed Tuesday. The coffee chain said that it had a $0.61 in earnings per share (EPS) and $6.7 billion in revenue. That compared with consensus estimates of $0.55 in EPS on revenue of $6.92 billion. The same quarter from last year reportedly had EPS of $0.79 and $7.10 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 modified operations, reduced hours, and reduced customer traffic.
During the quarter, global comparable store sales declined 5%, driven by a 19% drop in comparable transactions, partially offset by a 17% increase in average ticket. This consisted of Americas and U.S. comparable store sales decreasing 6% and international comparable store sales decreasing 3%.
Net revenues for the Americas segment decreased 6% year over year to $4.7 billion, primarily due to a decrease in comparable store sales, as well as lower product sales. Comparable transactions dropped by 21% and average ticket prices has increased by 20%.
International segment revenues increased by 5% to $1.7 billion. Transactions dropped by 10% but average ticket prices increased 8%.
The company opened 278 net new stores in the first quarter, raising its total to 32,938 stores at the end of the quarter. Note that stores in the United States and China comprised 61% of the company’s global portfolio at the end of the quarter, with 15,340 and 4,863 stores, respectively.
Looking ahead to the fiscal second quarter, Starbucks expects to see a U.S. comparable-store sales growth in the range of 5% to 10% and China comparable sales growth of nearly 100% and EPS in the range of $0.45 to $0.50. Consensus estimates call for $0.59 in EPS and $6.7 billion in revenue for the quarter.
Starbucks cash and cash equivalents totaled $5.03 billion at the end of the quarter, up from $4.35 billion at the end of the previous fiscal year.
Starbucks stock traded down 5.8% Wednesday morning to $98.57, in a 52-week range of $50.02 to $107.75. The consensus price target is $106.34.
24/7 Wall St.The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%1 today. Checking accounts are even worse.
But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn a $200 bonus and up to 7X the national average with qualifying deposits. Terms apply. Member, FDIC.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.