Starbucks' recovery, solid in China, still slow in US

Posted 1/26/21

Starbucks’ recovery slowed at the end of last year as U.S. coronavirus cases mounted, but the coffee titan says it’s confident its U.S. business will fully recover by March.

The Seattle-based …

To Our Valued Readers –

Visitors to our website will be limited to five stories per month unless they opt to subscribe.

For $5.99, less than 20 cents a day, subscribers will receive unlimited access to the website, including access to our Daily Independent e-edition, which features Arizona-specific journalism and items you can’t find in our community print products, such as weather reports, comics, crossword puzzles, advice columns and so much more six days a week.

Our commitment to balanced, fair reporting and local coverage provides insight and perspective not found anywhere else.

Your financial commitment will help to preserve the kind of honest journalism produced by our reporters and editors. We trust you agree that independent journalism is an essential component of our democracy. Please click here to subscribe.

Sincerely,
Charlene Bisson, Publisher, Independent Newsmedia

Please log in to continue

Log in
I am anchor

Starbucks' recovery, solid in China, still slow in US

Posted

Starbucks’ recovery slowed at the end of last year as U.S. coronavirus cases mounted, but the coffee titan says it’s confident its U.S. business will fully recover by March.

The Seattle-based company said Tuesday that its global sales at stores opened at least a year fell 5% in the October-December period. That was an improvement from the prior quarter, but it was still a bigger decline than the 4% drop Wall Street was expecting, according to analysts polled by FactSet.

Starbucks also fell short of revenue forecasts. The company reported sales of $6.75 billion in its fiscal first quarter, below the $6.9 billion than analysts forecast.

Without one-time items, Starbucks said it earned 61 cents per share in the October-December period. That was ahead of Wall Street's forecast of 55 cents.

Starbucks shares slipped about 1% in after-hours trading.

Starbucks said its business in China, its second-largest market after the U.S., has fully recovered, with same-store sales up 5% in the first quarter. Starbucks said it’s seeing fewer customers in China, but they’re spending more when they visit.

But in the U.S., same-store sales were down 5% for the quarter despite the holiday drinks that usually draw customers. Store closures and reduced store hours hurt traffic, as did a surge in coronavirus cases.

Still, Starbucks said it's confident U.S. same-store sales will rise between 5% and 10% in its fiscal second quarter as the pandemic's impact continues to fade.

Comments