Starbucks Beats Quarterly Expectations, Shows Signs of Quickened Recovery

by Alex Tostado

Seattle — Starbucks Coffee reports that global comparable-store sales fell 9 percent in the fiscal fourth quarter on a year-over-year basis, but the company’s performance still beat economists’ expectations. Total revenue for the Seattle-based coffee chain reached $6.2 billion in the fiscal fourth quarter, which ended Sept. 27. Economists had expected the total to be $6.06 billion.

“I am very pleased with our strong finish to fiscal 2020, underpinned by a faster-than-expected recovery in our two lead growth markets, the U.S. and China,” says Kevin Johnson, president and CEO of Starbucks. “These results demonstrate the continued strength and relevance of our brand, the effectiveness of the actions we’ve taken to adapt to meaningful changes in consumer behavior and the extraordinary efforts of our green apron partners to serve our customers and communities in challenging circumstances.”

The latest results are a big improvement from the fiscal third quarter, when global comparable sales plummeted 40 percent year-over-year due to the coronavirus shutdowns. Looking ahead, Starbucks expects same-store comparable growth of 18 to 23 percent and plans to open 2,150 new stores over the next fiscal year. As of Sept. 27, 2020, Starbucks operated 10,109 stores in the Americas.

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