Home Business Starbucks Revenue (SBUX) for the second quarter of 2022

Starbucks Revenue (SBUX) for the second quarter of 2022

46
0

Starbucks on Tuesday suspended its forecast for fiscal year 2022 as Covid’s blockade in China affected international sales.

However, strong U.S. demand offset China’s sharp decline, which helped the company’s quarterly revenue exceed Wall Street estimates.

Shares rose 5% according to a report in expanded trading.

Here’s what the company said compared to what Wall Street expected, based on a survey of Refinitiv analysts:

  • Earnings per share: 59 cents adjusted for expectations
  • Revenue: $ 7.64 billion versus the expected $ 7.6 billion

The coffee giant said net income in the second fiscal quarter owned by Starbucks was $ 674.5 million, or 58 cents a share, compared to $ 659.4 million, or 56 cents a share, a year earlier.

Excluding commodities, Starbucks earned 59 cents a share, according to analysts polled by Refinitiv.

The pedestrian wears the Starbucks branded cup in San Francisco, California, USA, on Thursday, April 28, 2022. Starbucks Corp.

David Paul Morris Bloomberg | Getty Images

Net sales rose 14.5% to $ 7.64 billion, exceeding expectations of $ 7.6 billion. Global sales at the same store grew 7% in the quarter, driving strong growth in the United States.

Sales in the same stores in the US grew by 12% as customers spent more on order and visited it more often. Active membership in the Starbucks loyalty program jumped 17% to 26.7 million customers.

Although demand for coffee in the U.S. remains strong, the company’s baristas are uniting in hopes of earning better pay and working conditions. About 50 company-owned companies have voted to unite in the last six months. Since Howard Schultz returned as interim CEO in early April, he has suspended share buybacks and launched a wiretapping campaign with baristas across the country to curb union growth.

Schultz announced that the company was seeking to contain the union push $ 1 billion in investment in fiscal year 2022 to raise wages, improved learning and innovation in stores during fiscal year 2022. However, the coffee giant will not offer increased benefits to cafe workers who voted to unite. Such changes in union-linked stores should happen through trade, Starbucks said.

“The union contract won’t even come close to what Starbucks offers,” Schultz told analysts during a conference call at the company.

Outside the US it was a dark quarter for Starbucks. International sales at the same store fell 8%, driven by a sharp decline in China, the company’s second-largest market. Sales in Chinese stores fell 23% in the quarter when the country resumed blocking after the Covid outbreak. Executives said that in 72% of Chinese cities where there are cafes, there were outbreaks of omicron variant during the quarter.

About a third of Starbucks stores in China are temporarily closed or only accept mobile phone orders, payment or shipping.

“We expect even more impact on ours [third-quarter] results due to the closure time in Shanghai and the further resurgence of the virus in other cities, including Beijing, ”said Belinda Wong, chairman of Starbucks China.

Citing blockages in China, inflation and investment in stores and employees, Starbucks has suspended its forecast for fiscal year 2022. Last quarter, he said he expects earnings per share on GAAP to fall between 4% and 6%, and adjusted earnings per share will grow 8-10% over the fiscal year.

The Starbucks quarter opened 313 new seats.

The company has also announced it is moving investor day from December to September and moving its location from New York to Seattle.

Read the full earnings report here.

This article is first published on Source link

Previous articleBiden visited the Lockheed plant as the US increased Javelin production for Ukraine
Next articleFederal Court of Appeals says Manhattan County Attorney may receive Trump’s tax returns