Starbucks revenue falls short, coffee chain offers mixed fiscal 2022 outlook

Tiger Newspress2021-10-29

Starbucks on Thursday reported quarterly revenue that fell short of expectations.

As the global coffee chain battles rising costs and the continued impact of the pandemic, it shared its forecast for fiscal 2022. Its outlook for earnings per share fell short of Wall Street's estimates, but its revenue prediction topped expectations.

Shares of the company fell nearly 4% in extended trading.

Here's what the company reported for the quarter ended Oct. 3 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1 adjusted vs. 99 cents expected
  • Revenue: $8.1 billion vs. $8.21 billion expected

Starbucks reported fiscal four-quarter net income of $1.76 billion, or $1.49 per share, up from $392.6 million, or 33 cents per share, a year earlier.

The coffee chain posted a 7% decline in China comparable sales in its fourth quarter, missing its forecast of roughly flat growth and offsetting a 22% jump in the United States.

The company forecast global comparable sales growth in the high single digits in its current fiscal year 2022.

But Chief Executive Officer Kevin Johnson also said higher prices, higher wages, new unit development, automation in stores, speedier cooking equipment and other investments will help it beat rivals and push its operating margin to its ongoing target of 18% to 19% in fiscal 2023.

"This is the time to take that market share that we know we can take, and that market share gain is permanent," Johnson said in an earnings call.

The company said it would open 2,000 net new locations globally in fiscal 2022 versus 1,173 in 2021, about 75% of them outside of the United States.

Johnson declined to say how much Starbucks would raise prices on Pumpkin Spice Lattes and other menu items.

But he said that "we are taking price and we will continue to take price in an inflationary environment."

The chain will also invest in equipment - like warming ovens and cold brew systems - to speed up operations and let workers perform other tasks.

On Wednesday, Starbucks said it would raise pay for U.S. workers with at least two years of employment and offer $200 referral bonuses, as it grapples with a nationwide labor shortage.

Starbucks is also closing some locations early in order to redeploy staff to other stores, Chief Operating Officer John Culver said during the call.

The coffee chain also committed to $20 billion of share repurchases and dividends over the next three years.

Analysts say the pressure in China should be temporary as restrictions ease and Seattle-based Starbucks opens more stores in the world's second-largest economy to boost growth.

Global comparable sales rose 17% in the quarter ended Oct. 3, compared with analysts' average estimate of 18.5% growth, according to Refinitiv IBES data.

Starbucks earned $1 per share on an adjusted basis - narrowly beating estimates of 99 cents.

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精彩评论

  • JaiVenky
    2021-10-29
    JaiVenky
    Great
  • JoelLee
    2021-10-29
    JoelLee
    Sell 
  • SilentWarrio
    2021-10-29
    SilentWarrio
    This is not a good news. Was hoping that it will go up
  • Cosmiclatte
    2021-10-29
    Cosmiclatte
    The SBUX bus is coming by to load up more passengers!! Hop on!!! I’m in. 
  • Deonc
    2021-10-29
    Deonc
    They are a good company and these are the kind of company to buy the dips on. Be patient and get rewarded. Retail businesses are affects by higher prices and higher wages for the moment, expenditure in new automation and high performance equipment, its will help business outperformance. Be patient. Please like and comment. if you agree.
    • Deonc
      agreed. [强]
    • Eded
      Actually already dorminan…. price should recover soon
    • Deonc

      Please Like and comment if your agree. Thanks!

  • 41a25b3d
    2021-10-29
    41a25b3d
    .
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