News

Starbucks on path to recovery from COVID-19

Starbucks has reported financial results for its 13-week fiscal first quarter, ended 27 December 2020.

Consolidated net revenues of US$6.7 billion declined 5 per cent from the prior year primarily due to the impact of the COVID-19 pandemic. This impact included the effects of reduced customer traffic, modified operations, reduced store operating hours, and temporary store closures.

While this is a decline compared to the previous year, quarter-on-quarter, Starbucks demonstrated a growth in revenue of US$500 million from US$6.2billion.

“I am very pleased with our start to fiscal 2021, with meaningful, sequential improvements in quarterly financial results despite ongoing business disruption from the pandemic. Investments in our partners, beverage innovation and digital customer relationships continued to fuel our recovery and position Starbucks for long-term, sustainable growth,” says Starbucks President and CEO Kevin Johnson.

“Our results demonstrate the continued strength and relevance of our brand, the effectiveness of the actions we’ve taken to adapt to changes in consumer behaviour and the steadfast commitment of our green apron partners to serve our customers and communities. We remain optimistic about our robust operating outlook for fiscal 2021 as well as our ability to unlock the full potential of Starbucks to create value for our stakeholders.”

Global comparable store sales declined 5 per cent year-on-year, driven by a 19 per cent decrease in comparable transactions, partially offset by a 17 per cent increase in average ticket.

Americas comparable store sales declined 6 per cent, driven by a 21 per cent decrease in comparable transactions, partially offset by a 20 per cent increase in average ticket. United States comparable store sales declined 5 per cent, driven by a 21 per cent decrease in comparable transactions, partially offset by a 19 per cent increase in average ticket.

International comparable store sales were down 3 per cent, driven by a 10 per cent decline in comparable transactions, partially offset by an 8 per cent increase in average ticket. China comparable store sales were up 5 per cent, driven by a 9 per cent increase in average ticket, partially offset by a 3 per cent decline in transactions. International and China comparable store sales are inclusive of a benefit from value-added tax exemptions of approximately 3 per cent and 5 per cent, respectively.

The company opened 278 net new stores in the first quarter of fiscal 2021, yielding 4 per cent year-over-year unit growth, ending the period with 32,938 stores globally, of which 51 per cent and 49 per cent were company-operated and licensed, respectively.

Stores in the US and China comprised 61 per cent of the company’s global portfolio at the end of the first quarter of fiscal 2021, with 15,340 and 4863 stores, respectively.

© 2020 All Rights Reserved. All content published on this site is the property of Prime Creative Media. Unauthorised reproduction is prohibited