Starbucks Corp has recorded an 11% rise in revenue for the quarter that ended on March 28.
Missed Quarterly Sales Estimates
The coffee chain's 11% rise in revenue missed quarterly sales estimates, sending shares down 2%, even though Starbucks raised its annual forecast for revenue and profit on the expectation that more customers will return as they get vaccinated.
Global Comparable Sales
Global comparable sales were hurt by weakness at its international business, where the COVID-19 pandemic has forced governments to restrict travel and shut cafés.
2021 Revenue Forecasts And Adjusted Earnings Per Share Expectations
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Still, the company raised its 2021 revenue forecast to between $28.5 billion and $29.3 billion. It expects adjusted earnings per share of between $2.90 and $3.
Analysts have forecast revenue of $28.61 billion and earnings of $2.85 per share.
US sales returned to pre-pandemic levels, Starbucks CEO Kevin Johnson said during a call with analysts.
"When you look at the progress we're making on vaccinations, certainly in the US, that's a proxy for what's going to happen around the world," he said.
Starbucks, like other restaurant chains, has struggled for over a year as consumers worked from home and made their coffee and breakfast themselves. Recent lockdowns in parts of Asia and Europe have slowed the recovery.
Sales In China
The Seattle-based company said that sales in its biggest growth market, China, nearly doubled from the same period a year ago when its stores in the country remained shut due to the health crisis.
Wall Street Expectations
However, the surge was not enough for its markets abroad to beat Wall Street expectations. They rose 35% in the company's international markets, but missed expectation of 48.25% growth, according to IBES data from Refinitiv.
Comparable Sales In The Americas
In the Americas, comparable sales rose 9%, powered by a recovery in the US, thanks to vaccinated consumers returning to stores or ordering their daily cup of coffee online.
Rewards Loyalty Programme Member Figures
The company grew its active Rewards loyalty programme members to 22.9 million, which an 18% year-on-year increase.
"I believe we have an opportunity to double that number," Johnson said. "I'm not going to give a time frame, it might take a couple of years."
Revenue rose by 11% to $6.67 billion during the second quarter, which ended on March 28, falling short of the estimate of $6.82 billion.
Benefit From Reopening
Most analysts believe that Starbucks will benefit from reopening as people crave social interactions at cafés and other gathering spots.
Euromonitor International Consultant Statement
"It is still going to be a while before people are both able to and comfortable with doing this again," Euromonitor International consultant Matthew Barry said.
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