Starbucks revenue misses after China’s Covid resurgence hurts sales

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Starbucks shift supervisor Adan Miranda wears a face mask as he serves a drink to a customer while standing behind a plexiglass shield in a booth outside the store in Sacramento, Calif., Thursday, May 21, 2020.

Rich Pedroncelli | AP

Starbucks on Thursday reported quarterly revenue that fell short of expectations as Covid-19 resurgences in China weakened sales.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1 adjusted vs. 99 cents expected
  • Revenue: $8.1 billion vs. $8.21 billion expected

Excluding the gains from the sale of its South Korean joint venture and the 53rd week, the coffee giant earned $1 per share, topping the 99 cents per share expected by analysts surveyed by Refinitiv.

Net sales rose 31% to $8.1 billion, falling short of expectations of $8.21 billion. Global same-store sales climbed 17%, missing StreetAccount estimates of 18.3%.

U.S. same-store sales increased by 22% in the quarter, rising by 11% on a two-year basis.

Growth in Starbucks’ international markets was muted. International same-store sales grew by 3%. In China, the company’s second-largest market, same-store sales shrank by 7%. Starbucks previously predicted flat Chinese same-store sales growth for the quarter.

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