Starbucks Perks on Q3 Numbers - InvestingChannel

Starbucks Perks on Q3 Numbers

Starbucks Corporation (NASDAQ:SBUX) found its stock soaring after the retail coffee giant reported stronger-than-expected results for its third quarter and raised its earnings guidance for FY20.

The Seattle-based Starbucks reported Tuesday global comparable store sales declined 40%, driven by a 51% decrease in comparable transactions, partially offset by a 23% increase in average ticket. Consolidated net revenues of $4.2 billion declined 38% from the prior year primarily due to lost sales related to the COVID-19 outbreak.

Those lost sales amounted to approximately $3.1 billion relative to the company’s expectations before the outbreak included the effects of temporary store closures, modified operations. Reduced hours and reduced customer traffic also contributed to the lost sales.

GAAP loss per share was $0.58, down from earnings per share of $1.12 in the prior year primarily due to unfavorable impacts related to the COVID-19 outbreak totaling approximately -$1.20 per share

Americas comparable store sales declined 41%, driven by a 53% decrease in comparable transactions, partially offset by a 27% increase in average ticket; U.S. comparable store sales were down 40%, with comparable transactions down 52%, partially offset by a 25% increase in average ticket.

CEO Kevin Johnson declared, “Since the beginning of the COVID-19 outbreak in January, we have taken a principled approach to navigate the crisis, true to our mission and values.

“Every step of the way, we have thoughtfully addressed the needs of Starbucks stakeholders and are particularly proud of the industry-leading investments we have made to support our partners while creating a safe, familiar and convenient experience for our customers.”

SBUX shares acquired $3.61, or 4.8%, to $78.25.