Starbucks released its second-quarter financial results after market hours Tuesday, and although the coffee giant posted some encouraging numbers, its shares declined regardless.
The quarter saw the company book revenue of $6.7 billion, up 11% from the same period of 2020. That was fueled by a 15% improvement in global same-cafe sales. Net profit more than doubled, rising to $659 million from the year-ago result of $328 million. On a non-GAAP (adjusted) per-share basis, the company’s bottom line saw a similar trajectory, landing at $0.62 from Q2 2020’s $0.32.
On average, the analysts tracking the stock were expecting revenue of $6.82 billion and an adjusted per-share net profit of $0.53.
Much of the improvements, of course, are due to the U.S. slowly emerging from the coronavirus outbreak. Stay-in-place measures, mandatory and otherwise, are mostly in the past, while businesses have gradually been allowed to reopen.
Starbucks is convinced it’ll recover along with the economy. “We have positioned Starbucks for the inevitable great human reconnection that we see unfolding in the U.S. and will propagate in every market around the world, where people once again connect with others face-to-face to heal, to belong, to reflect, to share and to celebrate,” it quoted CEO Kevin Johnson as saying.
The company proffered guidance for the entirety of 2021 (which, as a note, includes one extra week compared to 2020). It believes revenue will be $28.5 billion to $29.3 billion. Adjusted earnings are forecast at $2.90 to $3.00 per share. Those line items in 2020 were $23.5 billion and $1.17, respectively.
Investors were clearly expecting more. In early evening, Starbucks stock was trading down 1.7%.
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