Starbucks: Reports Record Q3 Fiscal 2021 Results

Seattle / WA. (sc) The Starbucks Corporation reported financial results for its 13-week fiscal third quarter ended June 27, 2021. «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,» said Kevin Johnson, president and CEO.

«As the Great Human Reconnection continues to unfold, our partners are rising to the occasion, ready to meet our customers wherever they need us to be – with the right store, in the right place, at the right time. Given the strength of our diverse portfolio and the elevated «Starbucks Experience», as evidenced in our Q3 record results, we are raising our full-year financial outlook and are confident in our ability to continue to execute our «Growth at Scale» agenda to unlock the full potential of the Starbucks brand,» said Johnson.

Q3 Fiscal 2021 Highlights

  • Global comparable store sales increased 73 percent, driven by a 75 percent increase in comparable transactions, partially offset by a 1 percent decrease in average ticket
    • Americas comparable store sales increased 84 percent, driven by an 82 percent increase in comparable transactions and a 1 percent increase in average ticket; U.S. comparable store sales increased 83 percent, driven by an 80 percent increase in comparable transactions and a 1 percent increase in average ticket
    • International comparable store sales increased 41 percent, driven by a 55 percent increase in comparable transactions, partially offset by a 9 percent decline in average ticket; China comparable store sales increased 19 percent, driven by a 30 percent increase in transactions, partially offset by a 9 percent decline in average ticket; International and China comparable store sales include adverse impacts of approximately 5 percent and 6 percent, respectively, from lapping prior-year value-added tax exemptions in China
  • The company opened 352 net new stores in the third quarter of fiscal 2021, yielding 3 percent year-over-year unit growth, ending the period with a record 33,295 stores globally, of which 51 percent and 49 percent were company-operated and licensed, respectively
    • Stores in the U.S. and China comprised 62 percent of the company’s global portfolio at the end of the third quarter of fiscal 2021, with 15,348 and 5,135 stores, respectively
  • Consolidated net revenues of USD 7.5 billion grew 78 percent compared to the prior year, mainly driven by a 73 percent increase in comparable store sales primarily from lapping the unfavorable impact of business disruption in the prior year due to the Covid-19 pandemic and strength in U.S. company-operated sales in the current year
  • GAAP operating margin of 19.9 percent increased from -16.7 percent in the prior year primarily driven by sales leverage from business recovery and the lapping of Covid-19 related costs in the prior year, as well as pricing in the Americas, partially offset by investments in wages and benefits for store partners; GAAP operating margin also benefited from higher restructuring activities in the prior year primarily associated with the Americas Trade Area Transformation
    • Non-GAAP operating margin of 20.5 percent, up from -12.6 percent in the prior year
  • GAAP earnings per share of USD 0.97, up from a loss of USD 0.58 in the prior year
    • Non-GAAP earnings per share of USD 1.01, up from a loss of USD 0.46 in the prior year
  • «Starbucks» Rewards loyalty program 90-day active members in the U.S. increased to 24.2 million, up 48 percent year-over-year