Starbucks’ sales continue to recover in the third quarter of 2021 amid the easing of Covid-19 trading restrictions in key markets around the world
Starbucks President and CEO, Kevin Johnson, pictured at an annual meeting of shareholders in 2019 | Photo credit: Starbucks Coffee Company
In the 13 weeks ended 27 June, the Seattle-based coffee chain posted a 78% increase in revenues to $7.5bn compared to the same period in 2020. The world’s largest coffee chain also reported $1.1bn profit compared to a $678.4m loss in the same period for 2020.
In Starbucks’ Americas market, revenues grew an astonishing 92% to $5.4bn during the period, with the coffee chain attributing robust sales at company operated stores in its flagship US market to the strong performance.
“Our ability to move with speed and agility and to be out in front of shifting customer behaviours has helped further differentiate Starbucks, positioning us well for this moment,” said Starbucks President and CEO, Kevin Johnson.
The sales rebound follows a significant reopening of economies around the world after more than a year of lockdowns and trading restrictions that brought the global hospitality industry to a standstill.
Starbucks’ global comparable store sales increased 73% during the period and rose 83% in the US. In China, comparable sales grew 19% and increased 41% across international markets, including its European stores.
Despite the strong performance, Starbucks downgraded its full-year sales expectations in China. The Seattle-based coffee chain now anticipates comparable store sales growth of 18-20% compared its previous forecast of 27-32% for its second largest market.
Stores in the US and China now comprise 62% of the company’s global portfolio, with 15,348 and 5,135 stores, respectively, Starbucks reported. The company opened 352 net new stores in the third quarter and anticipates 1,100 net new stores for the full year 2021.
Meanwhile, Starbucks confirmed on 26 July that it had sold its 50% stake
in Starbucks Coffee Korea Co. to current joint venture partner E-Mart Inc. and Singaporean sovereign wealth fund GIC.
The deal gives Shinsegae Group subsidiary E-Mart 67.5% ownership of Starbucks operations in South Korea, with GIC controlling the remaining 32.5% stake. E-Mart has been Starbucks' joint venture partner in South Korea since 1999, when the brand opened its first store Seoul. It now operates more than 1,500 stores across 78 cities in the East Asian