Starbucks posts record Q3 results, same-store sales surge in US

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NEW YORK, NEW YORK – DECEMBER 31: A person walks a dog outside Starbucks on December 31, 2020 in New York City. The pandemic continues to burden restaurants and bars as businesses struggle to thrive with evolving government restrictions and social distancing plans which impact keeping businesses open yet challenge profitability. (Photo by Noam Galai/Getty Images)

Starbucks (SBUX) delivered record fiscal third-quarter earnings results on Tuesday, with revenue surging 78% from a year ago during the depths of the COVID-19 pandemic. 

Here were the key figures versus the expectations for the third quarter, according to analysts polled by Bloomberg.

  • Revenue (adjusted): $7.5 billion, vs. $7.3 billion expected

  • Earnings per share (adjusted): $1.01, vs. 78 cents expected

“Starbucks delivered record performance in the third quarter, demonstrating powerful momentum beyond recovery. Our ability to move with speed and agility and to be out in front of shifting customer behaviors has helped further differentiate Starbucks, positioning us well for this moment,” CEO Kevin Johnson said in the release.

For the fiscal quarter ended June 27, the closely-followed comparable-store sales were up 73% globally, compared to estimates of 69.6%.

In the U.S., revenue grew 90% year-on-year, with same-store sales increasing 83% from a year ago. Also in the U.S., Starbucks cold beverages accounted for 74% of beverage sales, a new record.

“We continue to see strong demand for Starbucks cold brew, nitro cold brew, and Starbucks refresher beverages, while iced shaken espresso alone contributed more than a third of the iced espresso growth in the quarter. The cold category represented 74% of beverage sales in Q3, growing 10 percentage points over the past two years,” Johnson said on the earnings call.

International same-store sales were up 41% in the quarter, while China comparable-store sales were up 19%

Elsewhere, during the fiscal third quarter, 90-day active users on the Starbucks Rewards app in the U.S. were up 48% from a year ago to 24.2 million. In China, active rewards members rose 71% to 17 million users. 

Starbucks also raised its full-year fiscal 2021 EPS guidance, projecting adjusted EPS in a range of $3.20 to $3.25, up from prior guidance of a range of $2.90 to $3.

For the fiscal year, Starbucks expects Americas and U.S. comparable store sales growth of 21% to 22%, up from prior guidance of 17% to 22%. Meanwhile, Starbucks sees international comparable-store sales growth of 15% to 17%, down from prior guidance of 25% to 30%, and China comparable store sales growth of 18% to 20%, versus previous guidance of 27% to 32%. 

In the quarter, Starbucks opened 352 net new stores. Starbucks store footprint now stands at a record 33,295 globally, with 5,135 stores in China and 15,348 in the U.S., accounting for 62% of the total store portfolio.

Shares of Starbucks dropped nearly 3% in the after-hours session to last trade near $122.14.

Julia La Roche is a Correspondent at Yahoo Finance. Follow her on Twitter.

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