Starbucks Corp. (NASDAQ: SBUX) this week reported financial results for its 13-week fiscal first quarter, ended Dec. 27, 2020. Starbucks noted that GAAP results in fiscal 2021 and fiscal 2020 include items that are excluded from non-GAAP results. Go here to refer to the reconciliation of GAAP measures to non-GAAP measures.
Starbucks reported quarterly earnings of $0.61 a share, beating the estimates of $0.55 a share, compared with earnings of $0.79 per share a year ago. The company’s quarterly report represents an earnings surprise of 10.91%. A quarter ago, it was expected that Starbucks would post earnings of $0.33 a share when it really generated earnings of $0.51, unexpectedly delivering 54.55%.
“Our results demonstrate the continued strength and relevance of our brand, the effectiveness of the actions we’ve taken to adapt to changes in consumer behavior and the steadfast commitment of our green apron partners to serve our customers and communities,” said president and chief executive Kevin Johnson. “We remain optimistic about our robust operating outlook for fiscal 2021, as well as our ability to unlock the full potential of Starbucks to create value for our stakeholders.”
Q1 Fiscal 2021 Highlights
» Global comparable store sales declined 5%, driven by a 19% decrease in comparable transactions, partially offset by a 17% increase in average ticket.
» The company opened 278 net new stores in the first quarter of fiscal 2021, yielding 4% year-over-year unit growth, ending the period with 32,938 stores globally, of which 51% and 49% were company-operated and licensed, respectively.
» Stores in the U.S. and China comprised 61% of the company’s global portfolio at the end of the first quarter of fiscal 2021, with 15,340 and 4,863 stores, respectively.
» Consolidated net revenues of $6.7 billion declined 5% from the prior year primarily due to the impact of the COVID-19 pandemic. Impact included the effects of reduced customer traffic, modified operations, reduced store operating hours and temporary store closures.
» GAAP operating margin of 13.5%, down from 17.2% in the prior year primarily due to the COVID-19 pandemic, mainly sales deleverage, as well as growth in wages and benefits and Americas store portfolio optimization expenses, partially offset by labor efficiency and the impact of pricing in the Americas.