stockmarket

Starbucks Headed for Outsized Growth, Shares Pop




By Christiana Sciaudone

Investing.com — Starbuck expects “outsized growth” for the coming years. 

Shares of the coffee purveyor rose 4.4% after it said in a presentation that fiscal 2022 and 2023 are looking promising, while fiscal 2021 will be a recovery year.

Starbucks (NASDAQ:) reiterated the company’s fiscal 2021 forecast of adjusted earnings per share of $2.70 to $2.90. For fiscal year 2022, Starbucks expects outsized annual non-GAAP EPS growth of at least 20%, inclusive of the negative impact of lapping a 53-week year. Earnings per share for fiscal 2023 and fiscal 2024 are expected to grow between 10% and 12%, according to a presentation by Chief Financial Officer Patrick Grismer.

The stock is trading at a record, despite recording lower revenue for the past three quarters compared to the same periods a year earlier. The company had reported record quarterly earnings for the end of 2019.

“Looking ahead, coffee remains a very large and attractive market that is growing globally,” said Chief Executive Officer Kevin Johnson in a statement. “We are focused on growing category share and believe Starbucks is better positioned than ever for continued success.”

Starting in fiscal 2023, Starbucks expects company-operated comparable store sales growth of 4% to 5% annually, both globally and in the U.S., up from 3% to 4% previously.

In China, Starbucks now expects comparable store sales growth of 2% to 4% annually starting in FY23, a one percentage-point increase from the previous range of 1% to 3%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Read More   UK employment falls and wages shrink as Covid-19 hits jobs market - business live

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.