Starbucks Shares Down Nearly 7% Following 1Q Results
January 27 2021 - 3:51PM
Dow Jones News
By Michael Dabaie
Starbucks Corp. shares declined 6.8% to $97.61 in afternoon
trading.
The coffee retailer reported after the market close Tuesday that
first-quarter global comparable-store sales declined 5%.
Americas comparable-store sales declined 6%, with U.S.
comparable-store sales down 5%.
International comparable-store sales were down 3%, but China
comparable-store sales were up 5%.
Revenue was $6.7 billion, down from $7.1 billion a year earlier
primarily due to the impact of the Covid-19 pandemic. That missed
FactSet consensus for $6.9 billion.
Adjusted earnings per share were 61 cents, beating FactSet
consensus for 55 cents.
Starbucks boosted its 2021 GAAP EPS forecast to $2.42 to $2.62
from the previous $2.34 to $2.54. The company backed its guidance
for global comparable-store sales growth of 18% to 23% and
consolidated revenue of $28 billion to $29.0 billion.
"Overall, we continue to believe SBUX represents a compelling
idea for investors, with secular unit growth and exposure to
pent-up demand among both high-income and urban consumers," Stifel
said in an analyst note. Stifel rates the stock at Buy.
"We continue to believe Starbuck's scale, digital platform,
innovation competencies, and forward-thinking business mentality
should position it well for the [long term]. However, we see
limited [near term] upside due to the stock's elevated valuation
and the prospect of a more gradual [same store sales]/EPS recovery
relative to peers," KeyBanc Capital Markets said in a note. KeyBanc
rates Starbucks at Sector Weight.
"Our Neutral rating remains reflective of near-term uncertainty
and valuation rather than concerns around the company's
intermediate-to-[long term] prospects across its domestic and
international operations," MKM Partners said.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
January 27, 2021 15:36 ET (20:36 GMT)
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