By Christiana Sciaudone
Investing.com -- Starbucks (NASDAQ:SBUX) reported better-than-expected earnings for the third fiscal quarter, driving shares higher after the close.
The loss per share of 42 cents bested the 58-cent loss expected by analysts, and revenue of $4.2 billion beat the forecast of $4.07 billion.
Shares rose 3% in late trading.
Global comparable store sales declined 40%, driven by a 51% decrease in comparable transactions, but partially offset by a 23% increase in the average ticket.
The company forecast global comparable store sales declines of 12% to 17% for the fourth quarter and the full year. China comparable store sales should be roughly flat to down 5% for the fourth quarter, with a decline of 15% to 20% for the full year. GAAP EPS is expected to be in the range of 6 cents to 21 cents for the fourth quarter and 50 cents to 65 cents for the full year.
The stock is down about 14% since the start of 2020.
“With sales plunging and consumers unwilling to visit restaurants, prospects for Starbucks remain quite bleak in the near-term,” said Investing.com analyst Haris Anwar. “To counter this temporary shock, the coffee seller is adjusting quickly and exploring new store formats to stimulate demand.”
Anwar also noted the higher ticket average:
“While sales have fallen, customers that do go to Starbucks are spending more during the pandemic, with the average order including more items,” he said. “The current weakness in its shares price is an attractive opportunity for buy-and-hold investors.”