Companies across industries have taken a hit as a result of lockdowns amid the coronavirus pandemic. Starbucks announced it has lost as much as $3.2 billion USD in revenue during its fiscal third quarter. Withdrawing its prior outlook back in April, the company predicts a net loss per share of 64 cents to 79 cents and adjusted losses per share of 55 cents to 70 cents for the quarter ending June 28.
With the virus putting a stop to dining out in most of the U.S. for weeks on end, Starbucks converted its cafes to pick-up or drive-by joints only. By the end of May, 91 percent of Starbucks stores had reopened and same-store sales were down 32 percent. Starbucks expects same-store sales in the U.S. and China to decline 10 percent to 20 percent for the full fiscal year, and is planning to modify its stores to include renovations such as mobile pick-up locations, walk-up windows, curbside pick-up for mobile orders and double drive-thru lanes. It plans to open 300 new stores over the next 18 months — half of its original estimate.
Starbucks has seen sales improvements around the world as cities begin to reopen, however, and expects continued improvement through the fiscal fourth-quarter. “With each passing week, we are seeing clear evidence of business recovery, with sequential improvements in comparable store sales performance,” CEO Kevin Johnson and CFO Pat Grismer told stakeholders. “The Starbucks brand is resilient, customer affinity is strong and we believe the most difficult period is now behind us.”
In related news, AMC Theater has lost $2.2 billion USD due to the COVID-19 pandemic.