Investor Alert

Earnings Results Archives | Email alerts

Oct. 29, 2021, 8:22 a.m. EDT

Starbucks stock falls as sales growth fails to meet expectations

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Starbucks Corp. (SBUX)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

Claudia Assis

Starbucks Corp. stock fell more than 1% in the extended session Thursday after the specialty retailer’s sales growth slowed in the fiscal fourth quarter and came in below the company’s and Wall Street expectations.

Starbucks /zigman2/quotes/207508890/composite SBUX -0.16% said it earned $1.76 billion, or $1.49 a share, in the quarter, compared with $393 million, or 33 cents a share, in the year-ago period. Adjusted for one-time items, the company earned $1 a share.

Sales rose 31% to a record $8.1 billion, from $6.2 billion a year ago.

Analysts polled by FactSet expected Starbucks to report adjusted earnings of 99 cents a share on sales of $8.2 billion.

“We anticipate that our strong business momentum, increased operating efficiency and continued global store expansion will fund these unprecedented investments while delivering yet another year of significant growth,” Chief Executive Kevin Johnson said in a statement.

Comparable-store sales globally rose 17%, which the company pinned on a 15% rise in comparable transactions and a 2% rise in average tickets. Same-store sales increases by 22% for North America.

That increase in global same-store sales, however, was below growth between 18% and 22% that the company guided in July, when it reported fiscal third-quarter earnings. FactSet consensus called for a rise of 18%.

For the full fiscal 2021, Starbucks said its global comparable-store sales increased 20%, mostly thanks to a 10% increase in average ticket and a 9% increase in comparable transactions. In July, the company said full fiscal 2021’s same-store sales would grow between 20% and 21%.

Starbucks said Wednesday it was raising U.S. employees’ wages to at least $15 and up to $23 per hour and making other changes to improve working conditions in its stores.

Shares of Starbucks have gained 6% so far this year, compared with an advance of around 22% for the S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.84% .

US : U.S.: Nasdaq
$ 111.24
-0.18 -0.16%
Volume: 7.01M
Dec. 3, 2021 4:00p
P/E Ratio
Dividend Yield
Market Cap
$130.51 billion
Rev. per Employee
-38.67 -0.84%
Volume: 2.71B
Dec. 3, 2021 5:35p

Get news alerts on Starbucks Corp. — or create your own.
This Story has 0 Comments
Be the first to comment
More News In

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.