- Starbucks Corp.Starbucks Corp. s global growth fell short of expectations, overshadowing strong U.S. results and an improved sales outlook for the full year.
Gains across all regions were expected in the company's second quarter after the weakness of a year ago amid lockdowns and Covid 19 is spread.However, the global same-store sales increase - a closely watched metric - 15% was short of the 17% estimate compiled by Bloomberg, reflecting pockets of weakness in the global recovery even as a rebound is manifest in the coffee giant's key markets of China and the U.S.
Starbucks said in the Americas and some other international markets, which both missed sales estimates that were attributed lower product sales and royalty revenue from licensees limited gains.In recent months, large markets like Brazil, Mexico and India have struggled to contain the pandemic.And operational restrictions in Europe hurt results, said BloombergBloomberg Intelligence analyst Mike Halen.
'Many countries are completely locked down, he said.A lot of restaurants are closed, and restaurants do close.
In the United States, same store sales increased 9% and beat the 7.5% estimate of 9.5%.That measure rose 91% in China - a widespread pace that reflects the breakneck Covid closures of the year before.Even so, this was under the 97% estimate.
The stock fell 1.9% in New York late trading at 4: 34 p.m. on Tuesday.
These results are still possible in the United States, which are as well as China the company's most important market, and show performance is on it's way to unambiguous as vaccinations increase there, even though global recovery is uneven.The Seattle-based company may also see a boost from U.S. stimulus checks in the USA and an easing of dining restrictions.
The company updated earnings projections for the full fiscal year, with sales now at $28.5 billion to $29.3 billion compared to the previous guidance of $28 billion to $29 billion.Starbucks has also increased its expected operating margin.
Much like during previous quarters, the company reported a decline in the number of transactions, but higher ticket prices.This means that customers spend less at Starbucks, but when they do so, they go to it more.
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