After four straight quarters of sales declines, Starbucks returned to growth in the January-March period.
The Seattle-based coffee giant said Tuesday its sales rose 11 percent to $6.7 billion in the quarter. That was just shy of Wall Street’s forecast revenue of $6.78 billion, according to analysts polled by FactSet.
“Our second quarter results demonstrated impressive momentum in the business with full sales recovery in the US,” Starbucks President and CEO Kevin Johnson said.
Starbucks said its global same-store sales — or sales at stores open at least a year — jumped 15 percent, their first increase in a year. In China, same-store sales rocketed up 91 percent in the quarter, reflecting a recovery from last year’s store closures. US same-store sales rose 9 percent, compared to a 3 percent decline in the same period last year.
While Starbucks saw a 4 percent decline in store visits globally, those who came in spent more money, the company said. That has been a trend throughout the pandemic as customers’ usual patterns were disrupted. Starbucks is seeing fewer morning commuters grabbing a single coffee, but is seeing more orders for snacks and frothy drinks when families visit in the afternoon.
Starbucks said its net income more than doubled to $659.4 million, or 56 cents per share. Excluding one-time items, the company earned 62 cents per share, well above the 53 cents Wall Street forecast.
Starbucks raised its financial guidance for the 2021 fiscal year. The company now expects revenue in the range of $28.5 billion to $29.3 billion, up from $28 billion to $29 billion previously. It also expects adjusted full-year earnings of $2.90 to $3 per share, up from $2.70 to $2.90.
Starbucks shares dropped 1 percent to $114.45 in after-market trading Tuesday.