Starbucks Corp forecast 2021 earnings mostly above estimates on Thursday, helped by firm online orders and a recovery in demand following the initial hit from the Coronavirus pandemic.
The coffee chain was forced to close many stores and limit operations to take-away and delivery at the height of the COVID-19 pandemic; sales have since improved as consumers used the company’s app to order and collect at stores.
For the fourth quarter, comparable sales fell 9%, compared with Wall Street estimates of a 12.13% decline, as consumers picked up their morning coffee at cafes as they gradually returned to their daily routines.
Chief Executive Officer Kevin Johnson said Starbucks’ recovery in the U.S. and China, its most significant growth markets, was faster-than-expected.
The coffee chain now expects adjusted profit for fiscal 2021 between $2.70 per share and $2.90 per share. Analysts had forecast $2.74, according to IBES data from Refinitiv.