Coffeehouse chain Starbucks Corporation (SBUX) has posted mixed Q4 results, as the company beat earnings but lagged revenues estimates. Meanwhile, the shares of the company dropped 4.2% to close at $108.50 during the extended trading session on Thursday.
Starbucks reported quarterly net revenues of $8.1 billion, up 31.3% year-over-year. However, the figure failed to surpass the consensus estimate of $8.21 billion. A 32.7% year-over-year growth in net revenues from company-operated stores and a 45.9% rise in net revenues from licensed stores drove the company’s total net revenue growth.
The company reported earnings per share (EPS) of $1, up 96.1% year-over-year, marginally surpassing the consensus estimate of $0.99.
In other key operating metrics reported by the company, global comparable store sales increased 17% from last year. The rise in sales drove the 15% and 2% year-over-year growth witnessed in comparable transactions and average ticket, respectively.
Notably, the company opened 538 net new stores in the fourth quarter, denoting a 4% year-over-year increase in unit growth.
For Fiscal Year 2021, Starbucks reported net revenues of $29.1 billion, a year-over-year increase of 24%. The company reported EPS of $3.24 for the same period. It had reported earnings of $1.17 per share last year.
The CEO of Starbucks, Kevin Johnson, said, “Our strong finish to fiscal 2021, including record performance in the fourth quarter, demonstrates the resilience of Starbucks and reinforces the value of the bold strategic moves we have taken over the past two years. Through it all, we have thoughtfully navigated a strong recovery with an eye towards our future, all guided by our Mission and Values.” (See Starbucks stock chart on TipRanks)
On October 28, Stifel Nicolaus analyst Christopher O`Cull downgraded the stock from Buy to Hold. The analyst’s price target of $112 implies downside potential of 1.1%.
Consensus among analysts is a Strong Buy based on 10 Buys and 3 Hold. The average Starbucks price target of $127.25 implies upside potential of 12.4% from current levels. Shares have gained 28.2% over the past year.
According to the tool, the Starbucks website traffic registered a 2.09% monthly increase in global visits in September. However, year-to-date, website traffic has declined 4.65%.