Business: Starbucks profit falls 29.7% in first quarter of 2021

Business: Starbucks profit falls 29.7% in first quarter of 2021

The Starbucks coffee chain reported a net profit of $ 622.2 million in the first fiscal quarter in 2021, a 29.7% decrease from the same period in 2020. Earnings per quarter were $ 0.53, “a substantial improvement in margins compared to the previous quarter”. According to the company.

The company says net revenue is 6.75 billion, down 4.9% of the total, “due to the impact of the Kovid-19 epidemic.” Operating expenses decreased 0.5% to US $ 5.92 billion, with administrative expenses of US $ 472.1 million, an increase of 8.7%.

Starbucks CEO Kevin Johnson said “significant and sequential improvements” were still reported until the epidemic began to escalate. The executive says the company is positioned for long-term growth.

Net revenue on the US continent was $ 6.1 billion at the end of the first fiscal quarter, up 6.1%. Same-store sales (SSS) fell 5% in the United States, while 5% in China.

According to the company, the numbers indicate “continued recovery”. The average ticket increased by 17%.

For the next quarter, the company forecasts same-store sales growth of 5% to 10% in the United States, while estimates in China indicate “100% growth”. Earnings per share are expected to be between $ 0.45 to $ 0.50.

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About the author: Sarah Gracie

"Proud social media buff. Unapologetic web scholar. Internet guru. Lifelong music junkie. Travel specialist."

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