Download
Starbucks sales miss as virus spike keeps customers at home
CGTN
A cafe of Starbucks Coffee in Beijing, China, August 18, 2019. /CFP

A cafe of Starbucks Coffee in Beijing, China, August 18, 2019. /CFP

Starbucks on Tuesday reported a larger-than-expected fall in quarterly sales as the renewed surge in coronavirus cases in the United States kept customers at home.

The world's largest coffee chain's global same-store sales fell 5 percent in its first quarter, which ended December 27, more than analysts' estimates of a 3.4 percent decline, according to Refinitiv IBES data.

The second wave of COVID-19 infections and accompanying restrictions dented traffic at the coffee chain's stores, hampering its efforts to boost demand through product launches and new drive-thrus.

Comparable sales declined 6 percent for the Americas region, compared with a 5.2 percent fall expected by analysts.

But in China, Starbucks' biggest growth market, comparable sales rose 5 percent as the company benefited from the popularity of its rewards program and the return of pre-coronavirus consumer habits.

Customers also spent more money per order, helping to offset fewer transactions.

Starbucks also said chief operating officer Roz Brewer would be leaving the company next month to take a chief executive officer role at another company.

The Wall Street Journal reported that she would take the helm at Walgreens Boots Alliance Inc. Walgreens did not immediately reply to a request for comment.

For the second quarter, Starbucks said it expects U.S. comparable sales to rise between 5 percent and 10 percent, while in China they were forecast to grow nearly two-fold a year after the pandemic hit the region.

The company did not change its guidance of an expected rebound overall this year, with global comparable sales expected to rise 18 percent to 23 percent in 2021.

Net revenue fell 5 percent to $6.7 billion, missing expectations of $6.93 billion.

The Seattle-based company has been closing some stores, adding drive-thrus to others, remaking some with smaller cafes and building a few with no seating at all as it focuses on expanding to-go options.

Overall, the company opened 278 net new stores in the quarter, for a 4 percent year-over-year growth. It now has 32,938 stores around the world, 51 percent of which are company-operated.

Starbucks also saw coffee lovers return to its Reward Loyalty Program, with its count of 90-day active U.S. members increasing 15 percent year over year to 21.8 million.

Source(s): Reuters

Search Trends