Starbucks prepares to generate record second-quarter revenue as vaccines surge By Reuters

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© Reuters. FILE PHOTO: A Starbucks sign is displayed in one of the company’s stores in Los Angeles.

By Uday Sampath Kumar (Reuters) – After a year of declining sales, Starbucks Corp (NASDAQ 🙂 is expected to report record second-quarter revenue of more than $ 6.8 billion on Tuesday, as rapid Vaccines in the United States and China make customers more comfortable going back to their morning coffee runs. The world’s largest coffee chain was hit by falling store traffic in 2020, as rising infections and the closure of most offices led many to start brewing coffee at home. “Not everyone has gone back to work, but a lot of people have. So in the morning you go to Starbucks and you see again that drive-thrus have long lines,” said Brian Yarbrough, an analyst at Edward Jones, of the business of the company in the United States. . Most of the benefit from the reopening of the US economy will be seen in the coming quarters and investors will pay particular attention to Starbucks’ forecast, he added. To view a graph on Starbucks’ second quarter sales performance over the past decade: https://graphics.reuters.com/STARBUCKS-RESULTS/PREVIEW/xegvbxwxevq/chart.png For an interactive graph on Starbucks performance Starbucks’ second quarter sales over the past decade, click here: https://tmsnrt.rs/3tWVTYc THE SETTING Twelve months ago, Starbucks was reeling from the aftermath of the early stages of the pandemic, with its stores worldwide closed or operating with very limited capacity. Fast forward a year, and analysts say the framework the company has built with its online ordering service, loyalty program and self-service lanes puts it in a strong position to take advantage of a recovering economy. “They’re doing a lot of things right. The digital mix is ​​now more than half the business, mobile payment is a quarter of transactions, and the newer menu items have had a lot of traction,” said Nick Setyan, analyst at Wedbush Securities. . “So they have a lot of visibility into customer habits, more than any other name in the industry.” Revenue from the company’s smaller international segment is expected to increase by around 58%, mainly due to the near-total recovery of business in China and a slowdown in the expansion of rival Luckin Coffee (OTC :), plagued by accounting scandals. . THE BASICS * Starbucks is expected to report second quarter net revenue of $ 6.82 billion, an increase of 13.7% from the prior year and an increase of 8.1% from 2019, based on the median estimate of analysts, based on data from Refinitiv. * America’s revenue is expected to increase 7.1% over last year to $ 4.64 billion. * Earnings per share are expected to be 53 cents, down from 32 cents. To see a chart on Starbucks vs. according to Refinitiv data. * The company’s stock last traded at $ 115.71, having gained more than 53% in the last year.

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