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Starbucks Q1 EPS top estimates, miss on same-store sales

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Starbucks reported mixed earnings, posting $6.7B in revenue and $.61 in adjusted EPS, compared to estimates of $6.92B in revenue and $.55 EPS. Yahoo Finance’s Emily McCormick joined Yahoo Finance Live with the details.

Video Transcript

SEANA SMITH: We want to get to some more breaking news here on earnings. Starbucks is also out with its results, a little bit of a different picture here. Shares off just around 2% after hours. Emily McCormick has those details for us. Emily.

EMILY MCCORMICK: That's right, Seana. And we are seeing Starbucks disappointing when it comes to those fiscal first quarter comparable same store sales. Now taking a look here, we had global company comps down 5%. That was worse than expectations for a decline of 4.2%. Now, specifically, we saw that in the Americas, comparable same store sales were down 6%, and again, worse than the 5% consensus estimate. And internationally, we saw comparable same store sales down 3%. Also, one full percentage point below expectations.

Now I do want to highlight that we saw bottom line results actually beat here. We had adjusted earnings per share coming in at $0.61. That was ahead of consensus estimates by $0.06 per share. But taking a look here, we are seeing the stock under some pressure in the after hours. Again, it is really those comparable same store sales that strategists and analysts tend to look at when it comes to these restaurant companies. So another tough quarter here for Starbucks.

We will be looking here to see what they actually say in terms of guidance, looking at some of these headlines crossing. The company still seeing full year comparable sales of up 18%, up 23%. So potentially a rebound here when we look in 2021. Seana and Adam.

ADAM SHAPIRO: Emily, I don't know if you've had a chance to find it within the report. Did they mention store closures and the impact that did have on sales and if there will be further store closures because of the pandemic?

EMILY MCCORMICK: Absolutely, Adam. And that is something that we are still looking at as we go through these results. One of the things that I do want to highlight, though, is that Starbucks did see its China sales accelerate. So that was one area that they saw a little bit of strength here. Still some weakness that they were actually seeing again in those home markets. When we take a look at those, Americas comparable same store sales pointing to some weakness here. So that decline in foot traffic that had really plagued the company throughout 2020 still continuing to weigh on results in this fiscal first quarter.

SEANA SMITH: And we're seeing shares carrying some of those losses here initially after hours, as Starbucks off just around 1%. All right, Emily, thanks for bringing that to us.