By Michael Dabaie
Starbucks Corp. shares declined 6.8% to $97.61 in afternoon trading.
The coffee retailer reported after the market close Tuesday that first-quarter global comparable-store sales declined 5%.
Americas comparable-store sales declined 6%, with U.S. comparable-store sales down 5%.
International comparable-store sales were down 3%, but China comparable-store sales were up 5%.
Revenue was $6.7 billion, down from $7.1 billion a year earlier primarily due to the impact of the Covid-19 pandemic. That missed FactSet consensus for $6.9 billion.
Adjusted earnings per share were 61 cents, beating FactSet consensus for 55 cents.
Starbucks boosted its 2021 GAAP EPS forecast to $2.42 to $2.62 from the previous $2.34 to $2.54. The company backed its guidance for global comparable-store sales growth of 18% to 23% and consolidated revenue of $28 billion to $29.0 billion.
"Overall, we continue to believe SBUX represents a compelling idea for investors, with secular unit growth and exposure to pent-up demand among both high-income and urban consumers," Stifel said in an analyst note. Stifel rates the stock at Buy.
"We continue to believe Starbuck's scale, digital platform, innovation competencies, and forward-thinking business mentality should position it well for the [long term]. However, we see limited [near term] upside due to the stock's elevated valuation and the prospect of a more gradual [same store sales]/EPS recovery relative to peers," KeyBanc Capital Markets said in a note. KeyBanc rates Starbucks at Sector Weight.
"Our Neutral rating remains reflective of near-term uncertainty and valuation rather than concerns around the company's intermediate-to-[long term] prospects across its domestic and international operations," MKM Partners said.
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(END) Dow Jones Newswires
January 27, 2021 15:36 ET (20:36 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.