Starbucks says global same-store sales shrunk only 9% in the fiscal fourth quarter

Starbucks says global same-store sales shrunk only 9% in the fiscal fourth quarter
Written by:
Wajeeh Khan
30th October, 10:28
  • Starbucks says global same-store sales shrunk only 9% in the fiscal fourth quarter.
  • The coffee company reports £4.79 billion of revenue and 39.42 pence of EPS in Q4.
  • The American multinational chain raises its per-share dividend to 34.78 pence.

Starbucks Corporation (NASDAQ: SBUX) said on Thursday that its global comparable-store sales contracted only 9% in the fiscal fourth quarter. The company expressed confidence that sales were improving faster than expected in the United States and China, after months of halt due to the Coronavirus pandemic. In the prior quarter (Q3), Starbucks had reported a 40% decline in global same-store sales.

Starbucks was reported more than 0.5% down in extended trading on Thursday. On a year to date basis, it is now about 1.5% down in the stock market. Confused about choosing a reliable stockbroker to trade online? Here’s a list of the top few to make selection easier for you.

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Starbucks’ Q4 financial results versus analysts’ estimates

According to Refinitiv, experts had forecast the company to print £4.68 billion of revenue in the fourth quarter. For earnings per share, they had estimated 23.96 pence. In its report on Thursday, Starbucks blew past both estimates posting a higher £4.79 billion of revenue in Q4 and 39.42 pence of earnings per share.

At £303.47 million, the chain of coffeehouses said that its net income in the recent quarter was significantly lower than £620.62 million in the comparable quarter of last year. On a year over year basis, its net sales also saw an 8% decline in Q4. The American multinational estimates £930 million of sales lost due to the ongoing COVID-19 crisis.

Same-store sales in the U.S., Starbucks added, were 9% lower than last year. Its loyalty program in the United States, however, saw a 10% increase in active memberships to 19.3 million people, resulting in a 47% annualised growth in transactions. In September, comparable-store sales decline shrunk to only 4% in the U.S.  

Starbucks raises per-share dividend to 34.78 pence

In China, Starbucks’ same-store sales came in only 3% lower in the fourth quarter. 480 net new cafes, the Seattle-based company said, were opened in the recent quarter. For full fiscal 2021, Starbucks now forecasts up to £2.24 of adjusted EPS and £22.42 billion of revenue.  

The company’s board decided in favour of raising its per-share dividend to 34.78 pence. In separate news from the U.S., Yum Brands also revealed an 8% annualised growth in its third-quarter revenue on Thursday.

At the time of writing, Starbucks is valued at £79.79 billion and has a price to earnings ratio of 79.76.

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