Starbucks Corp has forecast 2021 earnings largely above estimates, helped by strong online orders and a recovery in demand following the initial hit from the COVID-19 pandemic.
The coffee chain was forced to close many stores and limit operations to takeout and delivery at the height of the COVID-19 pandemic, but sales have since improved as consumers used the company's app to order and collect at stores.
For the fourth quarter, Starbucks' comparable sales fell 9%, against Wall Street estimates of a 12.1% decline, as consumers gradually returned to their morning routines or shifted habits to other times of day.
Starbucks CEO Kevin Johnson said that Starbucks' recovery in the United States and China, which are its biggest growth markets, was faster-than-expected.
The coffee chain now expects adjusted profit for fiscal 2021 of between $2.70 per share and $2.90 per share. Analysts had forecast $2.74, according to IBES data from Refinitiv.
It believes that 2021 global comparable sales will rise by 18% to 23%, including growth in China of 27% to 32%.
New Location Plans, Shares And Average Ticket Price
Starbucks will open 1,100 net new locations globally in 2021, down from 1,400 this year, due to increased store closings.
Excluding one-time time items, Starbucks reported 51 cents per share, 20 cents more than expectations.
It also reported a 17% rise in the average ticket price during the quarter.