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Dec 27, 2020

Starbucks Q1 2021 Earnings Report

Starbucks' Q1 2021 results reflected meaningful improvements despite business disruptions, fueled by investments in partners, beverage innovation, and digital customer relationships.

Key Takeaways

Starbucks reported a 5% decline in global comparable store sales, with U.S. sales down 5% and China up 5%. GAAP EPS was $0.53, and non-GAAP EPS was $0.61. The company opened 278 net new stores, bringing the global total to 32,938.

Global comparable store sales decreased by 5%, driven by a 19% decrease in comparable transactions, partially offset by a 17% increase in average ticket.

Americas comparable store sales declined 6%, with U.S. comparable store sales down 5%.

International comparable store sales were down 3%, while China comparable store sales increased by 5%.

The company opened 278 net new stores in Q1 2021, yielding 4% year-over-year unit growth, ending the period with 32,938 stores globally.

Total Revenue
$6.75B
Previous year: $7.1B
-4.9%
EPS
$0.61
Previous year: $0.79
-22.8%
Global Comp Sales Growth
-5%
Previous year: 5%
-200.0%
Total Global Stores
32.94K
Previous year: 31.8K
+3.6%
Gross Profit
$1.83B
Previous year: $2.04B
-10.1%
Cash and Equivalents
$5.03B
Previous year: $3.04B
+65.4%
Free Cash Flow
$1.51B
Previous year: $1.44B
+4.8%
Total Assets
$30B
Previous year: $27.7B
+8.1%

Starbucks

Starbucks

Starbucks Revenue by Segment

Starbucks Revenue by Geographic Location

Forward Guidance

Starbucks provided full-year fiscal 2021 guidance, including global comparable store sales growth of 18% to 23% and GAAP EPS in the range of $2.42 to $2.62.

Positive Outlook

  • Global comparable store sales growth of 18% to 23%.
  • Americas and U.S. comparable store sales growth of 17% to 22%.
  • International comparable store sales growth of 25% to 30%.
  • China comparable store sales growth of 27% to 32%.
  • Consolidated revenue of $28.0 billion to $29.0 billion.

Challenges Ahead

  • Guidance is dependent on current expectations and may be impacted by evolving external conditions.
  • Local safety guidelines and shifts in customer routines, preferences, and mobility may affect guidance.
  • The company is unable to reconcile forward-looking non-GAAP financial measures to the most directly comparable GAAP measures without unreasonable efforts.
  • Such items may include acquisitions, divestitures, restructuring and other items.
  • The unavailable information could have a significant impact on the company’s GAAP financial results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income