What was the primary driver of revenue growth in the quarter?

The primary driver of revenue growth was the strong performance in company-operated stores, which benefited from a 15% increase in comparable store sales. This was largely fueled by a significant 19% increase in the average ticket price per transaction, indicating customers are spending more per visit.

How did the company's profitability change year-over-year?

Profitability saw a substantial improvement. Operating income more than doubled, increasing by 101.5% to $987.6 million. This was driven by strong sales leverage from the business recovery, cost efficiencies, and favorable foreign currency translation, which more than offset increased investments in wages, technology, and restructuring expenses.

What is the outlook for store growth and optimization?

Starbucks is continuing with its store portfolio optimization strategy, planning to close approximately 800 stores in North America primarily in dense metropolitan markets. While net new company-operated stores were added globally, the focus is on optimizing the store footprint to better meet evolving customer preferences.

How is the company managing its financial resources and liquidity?

Starbucks maintained a strong liquidity position with $3.9 billion in cash and cash equivalents. The company has access to significant credit facilities totaling $6.0 billion and is using its available cash and investments to fund operations, capital expenditures, and return cash to shareholders through dividends. The share repurchase program remains temporarily suspended until certain financial leverage targets are restored.

SBUX 10-Q Quarterly Report Q2 FY2021 — Revenue, Net Income, EPS

Summary

Starbucks Corporation's (SBUX) Q2 2021 filing (period ending March 28, 2021) demonstrates a significant recovery from the prior year's pandemic-impacted results. The company reported an 11.2% increase in total net revenues for the quarter, reaching $6.7 billion, driven primarily by strong performance in company-operated stores, which saw a 15% growth in comparable store sales. This growth was fueled by a substantial 19% increase in average ticket, indicating customers are spending more per visit, although transaction volumes saw a slight decrease. The company's operating income surged by 101.5% year-over-year to $987.6 million, with operating margins expanding significantly due to sales leverage from the recovery and cost efficiencies, partially offset by increased investments in wages and technology. The International segment showed particularly robust growth with a 35% increase in comparable store sales, highlighting a strong global rebound. Despite some revenue declines in the Channel Development segment due to ongoing transitions, overall financial performance indicates a positive trajectory and resilience of the Starbucks brand.

Financial Highlights

53 data points

Beta

Revenue

$6.67B

Net Income

$659.40M

0.1% Net Margin

EPS (Diluted)

$0.56

Total Assets

$28.37B

Cash & Equivalents

$3.88B

Free Cash Flow

$560.10M

Financial Statements

Beta

Revenue	$6.67B
Operating Expenses	$5.76B
Operating Income	$987.60M
Interest Expense	$115.00M
Net Income	$659.40M
EPS (Basic)	$0.56
EPS (Diluted)	$0.56
Shares Outstanding (Basic)	1.18B
Shares Outstanding (Diluted)	1.18B

Key Highlights

1Total net revenues increased by 11.2% to $6.7 billion in Q2 FY21, compared to $6.0 billion in Q2 FY20.
2Company-operated store revenues grew 18.6% due to a 15% increase in comparable store sales, driven by a 19% rise in average ticket.
3Operating income more than doubled, increasing by 101.5% to $987.6 million, with operating margin expanding to 14.8% from 8.1%.
4The International segment experienced a significant rebound with comparable store sales increasing by 35%.
5Net earnings attributable to Starbucks rose to $659.4 million, or $0.56 per diluted share, from $328.4 million, or $0.28 per diluted share, in the prior year quarter.
6The company is continuing its store portfolio optimization, with plans to close approximately 800 stores in North America.
7Starbucks ended the quarter with $3.9 billion in cash and cash equivalents and $4.3 billion in total cash and investments.

STARBUCKS CORP Quarterly Report for Q2 Ended Mar 28, 2021

Summary

Financial Highlights

Key Highlights

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