Starbucks estimates $915M loss from coronavirus impact

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Starbucks was coming off “one of the strongest holiday events in the history” of the 49-year-old coffee chain, CEO Kevin Johnson said during an earnings call Tuesday.

Building on that momentum, “Q2 was shaping up to be an exceptional quarter for Starbucks, driven by strong performance in the U.S. and channel development,” when coronavirus emerged in China, he said.

The Seattle-based coffee chain eventually closed more than 2,000 stores in China for several weeks, while revenue growth was still accelerating “to the strongest levels in over four years” in the U.S. That abruptly stopped in mid-March, at the end of the quarter, when, to protect employees and customers from the spread of Covid-19 ramping up across the nation, Starbucks closed about 50% of its 15,257 U.S. stores.

Revenue in the quarter that ended March 29 was down 5% globally to $6 billion, recording a loss of $310 million compared to a similar period last year. Starbucks estimates it lost $915 million globally due to the impacts of the virus, a number derived by comparing actual Q2 results to its previous forecast.

https://www.bizjournals.com/seattle/news/2020/04/30/starbucks-estimates-915m-loss-from-coronavirus.html?ana=e_ae_prem&j=90506361&t=Afternoon&mkt_tok=eyJpIjoiT1Raak56QTFNamhrTnpoaSIsInQiOiJTK2VDY013KzlyVklVeVlWZlJzZ2dqTlprTXF4Z0lrWjNMXC92U0pkY0VrUmQwaTl6NmtuY2swa2lXVG1MYU1RNWRqR3BJRkMySlFBamhJYXVxKzN3RW83V1FKRnNYREdaeHFicTF3TkxSaHMyK0MwRjZRODNVVytrTnV3cjE3Z1EifQ%3D%3D

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