What Led to Starbucks Corporation (NASDAQ: SBUX) Stock Crash?

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Starbucks Corporation (NASDAQ: SBUX) stock lost over 4.6% on Jan 27th, 2021 (as of 9:36 am GMT-5 ; Source: Google finance) after the company posted mixed results for the first quarter of FY 21. Net revenues for the Americas segment were 6% lower to $4.7 billion in Q1 FY21 relative to Q1 FY20, mainly due to a 6% decrease in comparable store sales as well as lower product sales to and royalty revenues from the licensees mainly due to the impact of the COVID-19 pandemic. Net revenues for the International segment rose 5% over Q1 FY20 to $1.7 billion in Q1 FY21, mainly due to 1,038 net new store openings, or 8% store growth. Net revenues for the Channel Development segment were 25% lower to $371.4 million in Q1 FY21 relative to Q1 FY20.

SBUX in the first quarter of FY 21 has reported the adjusted earnings per share of 61 cents, while reported 4.9 percent fall in the adjusted revenue to $6.75 billion in the first quarter of FY 21, missing the analysts’ estimates for revenue of $6.93 billion.

Starbucks Coffee

For fiscal 2021, the company expects Global comparable store sales growth to be in the range of 18% to 23%, Americas and U.S. comparable store sales growth to be in the range of 17% to 22%, International comparable store sales growth to be in the range of 25% to 30% and China comparable store sales growth to be in the range of 27% to 32%. The company expects approximately 2,150 new store openings and 1,100 net new Starbucks stores globally, Americas approximately 850 new store openings and approximately 50 net new stores, International approximately 1,300 new store openings and 1,050 net new stores and Approximately 600 net new stores in China. The company expects consolidated revenue to be in the range of $28.0 billion to $29.0 billion, inclusive of a $500 million impact attributable to the 53rd week. 2021 Channel Development revenue expected to be in the range of $1.4 billion to $1.6 billion. 2021. The company expects Consolidated Non-GAAP operating margin to be in the range of 16% to 17%, Interest expense to be in the range of approximately $470 million to $480 million, Non-GAAP EPS in the range of $2.70 to $2.90, inclusive of a $0.10 impact attributable to the 53rd week and Capital expenditures to be of approximately $1.9 billion.

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