Starbucks (SBUX) released its fourth-quarter earnings on Thursday after the market closed. The company reported record earnings but missed estimates by a narrow margin.
- Revenue: $8.1 billion
- EPS: $1.00
Q4 Earning Highlights
- The company opened 538 net new stores in the fourth quarter of fiscal 2021, yielding 4% year-over-year unit growth, ending the period with a record 33,833 stores globally
- Consolidated net revenues of $8.1 billion grew 31% compared to the prior year
- Q4 GAAP EPS $1.49; Non-GAAP EPS of $1.00
- GAAP operating margin of 18.2% increased from 9.0% in the prior year
- Non-GAAP operating margin of 19.6% increased from 13.2% in the prior year
- Starbucks Rewards loyalty program 90-day active members in the U.S. increased to 24.8 million, up 28% year-over-year
- Global comparable store sales increased 20%, primarily driven by a 10% increase in average ticket and a 9% increase in comparable transactions
- Consolidated net revenues of $29.1 billion increased 24% year over year
- GAAP earnings per share of $3.54 grew from $0.79 in the prior year including a $0.56 gain on the divestiture of their South Korea joint venture and $0.10 related to the 53rd week in fiscal 2021
- Company Announces Historic Investments in its Partners (Employees), Bringing Average U.S. Retail Hourly Wage to nearly $17/hr. by Summer 2022
“Our strong finish to fiscal 2021, including record performance in the fourth quarter, demonstrates the resilience of Starbucks and reinforces the value of the bold strategic moves we have taken over the past two years. Through it all, we have thoughtfully navigated a strong recovery with an eye towards our future, all guided by our Mission and Values,” said Kevin Johnson, president and CEO.
The company seems to be gaining momentum back as most of the places open, giving people more opportunities to grab a Starbucks on their way to work. Analysts had estimated the revenues to be strong and the company to witness EPS gains in this September quarter.
For this fourth quarter, the analysts had estimated the EPS to stand at $0.99 for Starbucks, while the revenue was expected to be $8.21 billion.
The International Coffee giant had broken the estimates for the last four quarters consistently. In the previous quarter, the company reported an EPS of $1.01. In the fourth quarter last year, the EPS was $0.51.
In the next quarter, Starbucks is expected to have an earning per share of $0.89, while the revenue can be around $7.82 billion. This, however, largely depends on how the countries tackle the spread of the delta variant of the virus.
Recent News Update
Before releasing the earnings, on Wednesday, Starbucks (SBUX) announced that it will raise the wages of its U.S. baristas- at least twice in 2022. This will bring its pay floor to $15 an hour by the summer. The employees with at least five-year experience can receive a pay hike of 10%. By doing this, the company is working on its long time belief that success is best when shared.