It was on Thursday, October 28, 2021, when Starbucks reportedly shared its earnings report for the fourth fiscal quarter. In the report, Starbucks has revealed that the revenue is generated in the fourth fiscal quarter fell short. The company wasn’t able to generate the revenue that the analysts had predicted.
Starbucks has revealed that the reason behind falling short on the revenues was due to the resurgence of COVID-19 in the Chinese region. This has resulted in the sales figures growing weaker in the fourth fiscal quarter.
With the passage of time, the costs have been rising constantly, and to make matters worse for the global coffee chain, the pandemic is not going away. Despite the low figures in the fiscal fourth quarter, Starbucks has still shared its forecast for the year 2022.
The outlook that Starbucks has shared for the upcoming quarters is lower than the estimates shared by the analysts from Wall Street. However, the predictions Starbucks has made for its revenue are higher than what the Wall Street analysts had estimated.
Since sharing the earnings report for the fourth fiscal quarter and upcoming year’s forecast, Starbucks ’ stock prices have experienced a 4% drop. The company has reportedly experienced a drop in the extended trading market.
For the fourth fiscal quarter, Starbucks reported that the adjusted earnings predicted by analysts were 99 cents per share. However, the company manage to achieve adjusted earnings worth $1 per share. As for the revenue, the analysts had predicted that the company would achieve $8.21 billion but the company was only able to generate $8.1 billion.
As for the net income for the fourth fiscal quarter, Starbucks reported that it generated a net income of $1.49 per share, translating to $1.76 billion. In the former fiscal fourth quarter, the company had only generated net income worth 33 cents per share, translating to $392.6 million.
The company reported that the net sales they generated for the particular quarter were $8.1 billion. Compared to the fourth fiscal year of the past year, the net sales have increased by 31%. Still, the company’s net sales were lower than the $8.21 billion expectations set by the analysts.
Starbucks revealed that the same-store sales experienced a 17% increase, but they still miss the estimations of 18.3% that were set by the analysts.
According to John Culver, the North American President and Chief Operating Officer, Starbucks has generated 75% of its sales from cold beverages in the particular quarter. The company has revealed that in the particular quarter, a 34% increase was recorded for espresso drinks.
Culver stated that they are hoping that the pandemic goes away soon and thinks to start getting back to normal. According to Culver, the peak hours at the chains are coming back to pre-pandemic hours.