The Seattle-based company reported first quarter revenue of $6.75 billion with earnings of 61 cents per share. Analysts were expecting Starbucks to report revenue of $6.93 billion with earnings of 55 cents per share.
“I am very pleased with our start to fiscal 2021, with meaningful, sequential improvements in quarterly financial results despite ongoing business disruption from the pandemic," said CEO Kevin Johnson. "Investments in our partners, beverage innovation and digital customer relationships continued to fuel our recovery and position Starbucks for long-term, sustainable growth.”
U.S comps in the quarter fell by 5%, while China comps rose 5%.
For fiscal 2021, the company raised its GAAP earnings guidance range to between $2.42 per share and $2.62 per share, which was up from its previous guidance of between $2.34 and $2.54 per share.
Analysts are expecting the company to report non-GAAP earnings of $2.81 per share in fiscal 2021.
For the second quarter, the company expects non-GAAP earnings to range between 45 cents and 50 cents per share, compared to analyst expectations of 59 cents per share.
Starbucks shares dropped 1.4% to $103.22 in after hours trading Tuesday.
"We remain optimistic about our robust operating outlook for fiscal 2021 as well as our ability to unlock the full potential of Starbucks to create value for our stakeholders,” said Johnson.
Earlier this month, Starbucks promoted Rachel Ruggeri, senior vice president of finance for the Americas, to be the company's next chief financial officer effective February 1.
Ruggeri joined Starbucks in 2001 as part of the company's accounting team.
Correction: Previous version of article compared Starbucks 2021 GAAP earnings estimates to analysts' non-GAAP estimates.