Best Estimates of Starbucks (SBUX) Q1 2021 Results

Starbucks announced on Tuesday that its comparable store sales in the United States fell 5% in its first fiscal quarter after a surge in new cases of Covid-19 led to tougher restaurant restrictions.

The company also announced that COO Roz Brewer will be leaving Starbucks at the end of February to take a position at another publicly traded company. His responsibilities will be divided among the other members of the existing management team.

Shares rose less than 1% under extended trading.

Here’s what the company reported compared to what Wall Street expected, based on an analyst survey by Refinitiv:

• Earnings per share: 61 cents, adjusted, vs. 55 cents expected
• Turnover: 6.75 billion dollars against 6.93 billion dollars expected

Excluding items, the coffee giant gained 61 cents per share, exceeding the 55 cents per share expected by analysts polled by Refinitiv.

Net sales fell 5% to $ 6.75 billion, below expectations of $ 6.93 billion. Worldwide, the company’s comparable store sales fell 5%. The chain recorded 19% fewer transactions in the quarter, but the average ticket jumped 17%.

In the United States, same-store sales declined 5%. The company’s recovery in its home market has been hampered by a new wave of new cases of Covid-19 as temperatures cooled. The number of Starbucks Rewards members who were active in the past 90 days increased 15% to 21.8 million people.

In China, Starbucks’ second-largest market, same-store sales turned positive for the first time since the onset of the health crisis. Its same-store sales increased 5%, although transactions declined further from the same period a year ago.

The company opened 278 net new cafes during the quarter and now has a footprint of nearly 33,000 locations.

The next quarter, Starbucks forecasts comparable store sales growth in the United States of 5% to 10%. In China, same-store sales are expected to nearly double. He expects to earn 36 cents to 41 cents per share. On an adjusted basis, he projects earnings per share of 45 cents to 50 cents.