Starbucks says global sales in the same stores declined by only 9% in the fourth quarter of the fiscal year.

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Starbucks says global sales in the same stores declined only 9% in the fourth quarter of the fiscal year.
The coffee company reported fourth quarter sales of £4.79 billion and 39.42 pence earnings per share.
The US multinational chain is increasing its dividend per share to 34.78 pence.

Starbucks Corporation (NASDAQ: SBUX) said Thursday that its global sales in comparable stores declined by only 9% in the fourth quarter of the fiscal year. The company was confident that sales in the United States and China would improve faster than expected after months of downtime due to the coronavirus pandemic. In the previous quarter (Q3), Starbucks had reported a 40% decline in global sales in comparable stores.

On Thursday, Starbucks reported a decline of more than 0.5% in its expanded stores. So far this year, the stock market has now fallen by approximately 1.5%. Confused about choosing a reliable stock broker for online trading? Here is a list of the most important ones to help you make your choice.

Starbucks’ financial results for the 4th quarter compared to analysts’ estimates

According to Refinitiv, experts had forecast the company’s fourth-quarter sales of 4.68 billion pounds sterling. For earnings per share they had estimated 23.96 pence. In its report on Thursday, Starbucks exceeded both estimates, posting higher revenues of £4.79 billion and 39.42 pence earnings per share for the fourth quarter.

At £303.47 million, the coffee house chain stated that its net profit for the last quarter was significantly lower than £620.62 million in the same quarter last year. On a year-on-year basis, its fourth quarter net sales were also down 8%. The U.S. multinational estimates the loss of revenue due to the ongoing COVID 19 crisis at £930 million.

Sales in the same stores in the US, Starbucks added, were 9% lower than last year. However, its loyalty program in the United States saw a 10% increase in active memberships to 19.3 million people, resulting in a 47% annual increase in transactions. In September, the decline in sales in comparable stores in the U.S. shrank to only 4%.

Starbucks increases dividend per share to 34.78 pence

In China, sales in the same Starbucks stores declined by only 3% in the fourth quarter. According to the Seattle-based company, 480 net new cafés were opened in the last quarter. For the full 2021 fiscal year, Starbucks now forecasts up to £2.24 in adjusted EPS and £22.42 billion in sales.

The company’s board has decided to increase the dividend per share to 34.78 pence. In separate news from the U.S., Yum Brands also reported on Thursday annualized third quarter revenue growth of 8%.

At the time of writing this article, Starbucks is estimated to be worth £79.79 billion and has a P/E ratio of 79.76.

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