Kevin Johnson, CEO of Starbucks
Scott Mlyn | CNBC
Starbucks is expected to release its results for the first quarter of its fiscal year after the bell on Tuesday.
Wall Street analysts surveyed by Refinitiv expect the following:
On the coffee giant’s investor day in December, CFO Pat Grismer reiterated the company’s outlook for fiscal 2021 of adjusted earnings per share in a range of $ 2.70 to $ 2.90. The coronavirus pandemic demand is not expected to fully recover until next year.
The recovery is in full swing in China, Starbucks’ second largest market. The country’s sales in the same store only fell 3% in the previous quarter. But the chain is under more pressure in its home market.
In the company’s previous quarter, US sales in the same store were down 9%. During the crisis, Starbucks used and paid for its thoroughfares and mobile orders to lure customers into its cafes. But the disturbance of everyday life has resulted in more and more consumers making their own coffee at home, and high unemployment has left many people in dire straits.
Starbucks’ profits could also be hurt by higher labor costs after wages for all baristas rose by at least 10% in December. CEO Kevin Johnson said the chain is working to pay its workers at least $ 15 an hour in a few years. President Joe Biden has proposed raising the federal minimum wage from $ 7.25 an hour to $ 15 an hour over the next five years.
Starbucks shares are up 13% over the past year, giving the company a market value of $ 123 billion.