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Sep 27, 2020

Starbucks Q4 2020 Earnings Report

Starbucks' Q4 2020 earnings reflected a faster-than-expected recovery in the U.S. and China, with global comparable store sales declining by 9%.

Key Takeaways

Starbucks reported Q4 fiscal 2020 results with a consolidated net revenue of $6.2 billion, an 8% decrease year-over-year. Global comparable store sales declined by 9%, though there was a recovery in the U.S. and China markets. GAAP EPS was $0.33, while non-GAAP EPS was $0.51.

Global comparable store sales decreased by 9%, driven by a decline in comparable transactions, partially offset by an increase in average ticket.

Americas and U.S. comparable store sales decreased by 9%, with a significant decrease in comparable transactions offset by a substantial increase in average ticket.

International comparable store sales were down 10%, while China comparable store sales decreased by 3%.

The company opened 480 net new stores in Q4, resulting in a 4% year-over-year unit growth, with a total of 32,660 stores globally.

Total Revenue
$6.2B
Previous year: $6.75B
-8.1%
EPS
$0.51
Previous year: $0.7
-27.1%
Global Comp Sales Growth
-9%
Total Global Stores
32.66K
Gross Profit
$1.54B
Previous year: $1.86B
-17.0%
Cash and Equivalents
$4.35B
Previous year: $2.69B
+61.9%
Free Cash Flow
$1.15B
Previous year: $582M
+96.7%
Total Assets
$29.4B
Previous year: $19.2B
+52.8%

Starbucks

Starbucks

Starbucks Revenue by Segment

Starbucks Revenue by Geographic Location

Forward Guidance

Starbucks provided fiscal year 2021 guidance, including global comparable store sales growth of 18% to 23% and consolidated revenue of $28.0 billion to $29.0 billion.

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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income