Here is what to anticipate from Starbucks earnings
People wear protective face masks in front of Starbucks in Union Square as the city resumes Phase 4 reopening after restrictions were imposed in New York City on September 29, 2020 to slow the spread of the coronavirus.
Noam Galai | Getty Images
Starbucks is expected to announce its fourth quarter results after the bell on Thursday.
Here’s what Wall Street expects based on an analyst survey by Refinitiv:
- Earnings per share: 31 cents expected
- Revenue: $ 6.06 billion expected
The coronavirus pandemic has disrupted daily routines and commutes, including that of coffee drinkers. Last quarter, Starbucks posted a loss and global sales in the same store were down 40%.
However, both analysts and the company are more optimistic about the fourth quarter of the fiscal year. Starbucks announced in late July that it expected adjusted earnings per share to be in a range of 18 to 33 cents. US sales in the same store are expected to shrink by 12% to 17%, and sales in the Chinese store in the same store are expected to decrease to roughly 5%. The two countries are Starbucks’ largest markets.
Analyst estimates by Refinitiv predict a decline in sales of only 10%. In the last quarter, sales fell 38%.
The fourth quarter of fiscal also brings the return of Starbucks’ popular Pumpkin Spice Lattes, a seasonal drink that has been drawing customers back to repeat visits for nearly two decades. The drink returned in late August, the earliest fall menu start ever.
Starbucks shares, with a market value of $ 103 billion, are unchanged so far this year.
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