Starbucks sees better-than-expected earnings for 2021

In this news, we discuss the Starbucks sees better-than-expected earnings for 2021.

(Reuters) – Starbucks Corp SBUX.O expects 2021 profits to be well above estimates on Thursday, helped by strong online orders and a pickup in demand after the initial blow of the COVID-19 pandemic.

The coffee chain was forced to close many stores and limit take-out and deliveries during the height of the COVID-19 pandemic, but sales have since improved as consumers used the app’s company to order and collect in stores.

For the fourth quarter, comparable sales fell 9%, compared to Wall Street estimates of a 12.13% drop as consumers grab their morning coffee in cafes as they gradually returned to their routine daily.

Starbucks shares fell more than 1% after-hours trading.

Chief Executive Kevin Johnson said Starbucks’ recovery in the United States and China, its biggest growth markets, has been faster than expected.

The coffee chain now expects adjusted earnings for fiscal 2021 to range between $ 2.70 per share and $ 2.90 per share. Analysts had forecast $ 2.74, according to IBES data from Refinitiv.

Starbucks’ takeover could be seen as lagging behind other restaurant chains, including Chipotle Mexican Grill Inc CMG.N and the big pizza companies, whose sales have remained high during the pandemic or turned positive in recent weeks. .

Earlier Thursday, rival coffee chain Dunkin ‘Brands DNKN.O reported comparable store sales growth in the United States of 0.9% for the quarter.

Excluding one-time items, Starbucks returned 51 cents a share, 20 cents more than expected.

He also reported a 17% increase in the average ticket price during the quarter.

Report by Nivedita Balu in Bengaluru; Additional reporting by Hilary Russ in New York; Editing by Shounak Dasgupta and Aurora Ellis

Original © Thomson Reuters

Bollyinside - Latest News and Reviews
Enable registration in settings - general
Compare items
  • Total (0)