Starbucks reported 40% drop in global sales

News

Starbucks reported 40% drop in global sales

05.08.2020 News

Shares of Starbucks have lost more than 15% since the beginning of the year, rose 5.7% after the publication of the results of the 3rd quarter, which ended on June 28, and forecasts for the 4th quarter and the whole of 2020.

For Starbucks, as for the entire global restaurant market, the three months from April to June 2020 were a trial. Initially, restaurants in China, then in the United States and around the world were closed due to quarantine during the COVID-19 pandemic, the number of visitors was limited and was much lower, as many were transferred to remote work, study or lost their jobs. According to Starbucks management, the pandemic resulted in a loss of $ 3.1 billion.

For the 3rd quarter, the company reported a loss per share of $ 0.46, which is a sharp decrease compared to previous quarters, but better than analysts estimate a loss of $ 0.59 per share.

The global network of coffee shops posted a net loss of $ 678.4 million compared to a profit of $ 1.37 billion a year earlier. Profits were affected by increased costs of paid leave for staff and security measures dictated by quarantine rules.

Total revenue decreased from 38% to $ 4.2 billion, but was higher than analysts’ estimates of $ 4.06 billion.

Global sales of comparable stores (open for at least a year) fell by 40%, falling in North and South America was 41%, but it was less than analysts forecast a decrease of 42.05% and 42.82%, respectively.

The number of active participants in the reward program also decreased by 5% compared to last year, because regular customers ordered coffee very rarely. However, the situation needs to improve as the network recently introduced new cost-effective payment methods to participants.

The growth was positive for the services of delivery and mobile replacement, as 22% of the foreign transactions in the quarter were sold.

Despite the epidemic, Starbucks during the quarter have been opened 130 new festooned cafes all over the world. The company also voiced, that there are more points with the service of a car “pickup”, for the analogue of McDrive in McDonalds.

The Starbucks Company is optimistic about future, considering that July trends show a good rate of recovery in sales in the United States.

The company raised the profit forecast for the fourth fiscal quarter, believing that “the impact of the pandemic in the current quarter will be significantly mitigated.” Earnings per share for the fourth quarter changed from $ 0.15 $ 0.40 to $ 0.18 $ 0.33, against $ 0.27, according to analysts.

Starbucks also changed an annual global sales forecast from a 10% -20% decline to a 12% -17%.

Executives expect sales in comparable stores in China and the United States to grow significantly by the end of the first and second financial quarters, about a year after the crisis, unless there is a new wave of sickness or a serious economic crisis. Starbucks expects to make a profit in the next two quarters.

“We still have a long way to go before we can fully recover, our optimism based on the strength of our brand, and also the strategies and initiatives which we need to increase in sales,” said Starbucks CFO Pat Grismer.

Other articles

  • Exxon Mobil announces record depreciation of its gas assets by $ 20 billion
    News

    Exxon Mobil announces record depreciation of its gas assets by $ 20 billion

    The American oil and gas giant Exxon Mobil had one of the worst years in its history. Exxon shares have fallen by 45.36% since the beginning of 2020. The company has lost money for three quarters in a row, and in August they were excluded from the benchmark index of “blue chips” Dow Jones Industrial […]

  • McDonald’s will cook burgers in a new way
    News

    McDonald’s will cook burgers in a new way

    McDonald’s F 32 has officially announced changes in the process of cooking its burgers. The buns will become softer and darker, and the company will bake them according to three different recipes. McDonald’s promises they will not have flavor enhancers: only natural ingredients to improve texture, frying and taste. The size of the buns was […]

  • AirBaltic will resume flights to Ukraine
    News

    AirBaltic will resume flights to Ukraine

    Latvian airline AirBaltic will resume flights to Ukraine on December 1 and will start a new flight Vilnius-Kiev to Boryspil airport. The schedule includes departures twice a week on Tuesdays and Saturdays on Airbus A220-300. Flights from Vilnius will depart at 09:00, from Kiev – at 11:15. “Vilnius Airport can be used for transit to […]

  • WHO has announced a new record weekly increase in COVID-19 cases
    News

    WHO has announced a new record weekly increase in COVID-19 cases

    Last week, from November 16 to 22, more than 4 million people in the world became infected with the new type of coronavirus, which is a record number since the beginning of the pandemic. This was announced on Tuesday, November 24, the press service of the World Health Organization. According to the WHO, in these […]

  • Citigroup predicted the dollar to fall by 20% next year
    News

    Citigroup predicted the dollar to fall by 20% next year

    If coronavirus vaccines become widely available and help restore international trade and economic growth, the dollar is likely to fall by 20% in 2021. Bloomberg reports that this forecast was made by Citigroup Bank. If the forecast comes true, it will be a record drop since 1985, when the DXY index fell by 18.5% over […]

  • Weekend quarantine: named losses of restaurants
    News

    Weekend quarantine: named losses of restaurants

    During the first weekend of weekend quarantine, catering establishments lost 27% of turnover. This is as of Monday, November 16, according to the platform Opendatabot, citing data from Poster, a restaurant automation company. It is noted that during the week the turnover of cafes and restaurants fell by 10% compared to the previous week. In […]

  • The Moderna vaccine has been tested. It can be approved at an accelerated rate
    News

    The Moderna vaccine has been tested. It can be approved at an accelerated rate

    Reuters reported, In Switzerland, the procedure of accelerated testing of Moderna vaccine has started. This will allow to approve the drug if it passes all clinical trials. “Swissmedic can get an initial idea of the benefits and risks of vaccine candidates before the study is completed. This speeds up the review process and at the […]

  • The WHO hopes to radically change the situation with the coronavirus by March
    News

    The WHO hopes to radically change the situation with the coronavirus by March

    The World Health Organization expects that by the spring of 2021, the situation in the fight against the coronavirus pandemic could change significantly. The main hope is the invention of vaccine against the disease. This was stated by Adviser to the Director-General of the WHO Bruce Aylward. He noted that by March the situation could […]

Read also

Starbucks reported 40% drop in global sales
News

The prosecutor’s office closed the criminal case against VAB Bank main shareholder

The criminal case against the owner of VAB Bank is closed. It is reported by news agency Interfax-Ukraine, referring to the statement of the press service of the Ukrainian company Ukrlandfarming, co-owner of which is also above mentioned businessman Oleh Bakhmatiuk. According to the original source, in the course of an investigation initiated by representatives […]

Next
Starbucks reported 40% drop in global sales
News

Ministry of Health informed that Ukrainian facilities can use AstraZeneca vaccine against coronavirus

Health Minister Maxim Stepanov and British Ambassador to Ukraine Melinda Simmons discussed the possible production of a coronavirus vaccine at Ukrainian facilities. The Ministry of Health is in constant contact with AstraZeneca. This was announced by the head of the Ministry of Health on Facebook. Vaccine production may be launched in the near future. “We […]

Next
Starbucks reported 40% drop in global sales
News

Trump canceled the trade negotiations with China through a pandemic COVID-19

US President Donald Trump canceled the trade negotiations with China due to pandemic of coronavirus. The American leader has accused China in the spread of the virus in the world. The information was reported by Bloomberg. The trade agreement concluded in the first stage, which came into force in February, ensured a discussion of the […]

Next
Starbucks reported 40% drop in global sales
News

Farmak сan be deprived of license to use the trademark Diazolinum

Commercial Court of Kiev  took to attention  the case of the right’s  deprivation of Farmak Ukraine on the use of certificates for signs for Diazolinum goods. It is reported by a specialized news resource Pharma.net.. A prerequisite to the beginning of the litigation was an appeal of representatives of the international distributor of Farmat LTD […]

Next
Starbucks reported 40% drop in global sales
News

PayPal company has announced the “strongest quarter” in its history

Shares of PayPal, increased up to 70.7% since the beginning of the year, continued to rise after the announcement of the financial results of the 2nd quarter which ended on June 30. This is not surprising given the growth of digital payments against the background of the global pandemic COVID-19. “The world has moved into […]

Next
Starbucks reported 40% drop in global sales
News

Dell reported of a good second quarter

Shares of Dell Technologies rose after the company released results for the second quarter of fiscal 2021, which ended July 31 this year. Since the beginning of the year, shares of Dell Technologies have risen by about 21.5% compared to the growth of the S&P 500 by 7.85%. Dell reported a decrease in earnings per […]

Next
Starbucks reported 40% drop in global sales
News

Samsung is going to buy Harman

The Samsung Group electronics declared a takeover of Harman International Industries Company. The price of one share of the American entity will cost shareholders of Samsung $112 that is 28% more than the start price of assets. Thus, the cost of the transaction reaches $8 billion. Harman International Industries is the American developer and the […]

Next
Starbucks reported 40% drop in global sales
News

Chipotle shares fall rapidly after a scandal over substandard products

This week Chipotle (Chipotle Mexican Grill) closed another restaurant, this time in Boston, after a large number of students were poisoned by food. Questions of consumers about quality of products in Chipotle grow. Similar cases have been seen in other states, when people feel bad after a visit to Chipotle.  Food scandal confused the investors […]

Next
Starbucks reported 40% drop in global sales
Analytics

Unknown Switzerland

Switzerland is an amazing country, and not only in the sense of the unsurpassed beauty of the landscape, but also in the incredible economic performance having ultralow natural resources. Switzerland is a country with almost complete lack of mineral deposits. Most of the territory consists of mountain ranges of the Alps. There is everything you […]

Next
Starbucks reported 40% drop in global sales
News

Among the 1 million companies operating in Ukraine only 16% of employees work in IT

Ukrainian monitoring center registration data OpenDataBot has promulgated the final quantitative indicators of the enterprises registered in Ukraine. From these data, it became clear that for the year in Ukraine already exist more than a million active businesses, but despite this, very few of them are operating in the field of intelligent technologies (IT) – […]

Next
Starbucks reported 40% drop in global sales
News

Citigroup predicted the dollar to fall by 20% next year

If coronavirus vaccines become widely available and help restore international trade and economic growth, the dollar is likely to fall by 20% in 2021. Bloomberg reports that this forecast was made by Citigroup Bank. If the forecast comes true, it will be a record drop since 1985, when the DXY index fell by 18.5% over […]

Next
Starbucks reported 40% drop in global sales
News

Ukrposhta has shared its plans for 2017

In the new year Ukrposhta will invest in its development up to 500 million UAH. It is reported by the press service of the national postal operator, referring to the words of the CEO – Ihor Smilianskyi. According to the original source, in the new year the investment plan is going to be increased in […]

Next
Starbucks reported 40% drop in global sales
News

“Agroprosperis” invested about $ 50 million in the elevator business

During the past 5 years was invested about $ 10 million per year in the construction and modernization of the elevators of “Agroprosperis”. This was told by the CEO of the NCH Agribusiness Investment Fund – “Agroprosperis” Group of companies, Igor Osmachko in an interview to the Liga.Business. “For the moment, the structure of the […]

Next
Starbucks reported 40% drop in global sales
News

Founder of the EBay, Pierre Omidyar, has left the company’s board of directors

Founder of the platform for online auctions of the eBay Pierre Omidyar will leave the company’s board of directors and receive the title of Director Emeritus, according to release in the eBay. “For 25 years I have proudly watched as the company that I created, opened up the economic opportunities for people around the world. […]

Next
Starbucks reported 40% drop in global sales
News

Tesla is recalling 50,000 vehicles

Tesla is recalling about 50,000 Model S and Model X cars manufactured in the United States in different years and imported to China due to the identified suspension problems. This was reported on its website by the Chinese State Administration of Market Regulation. According to the statement of the Chinese regulator, almost 30 thousand Model […]

Next
Starbucks reported 40% drop in global sales
News

Business results of the week from the LDaily

Saturday morning in the company of LDaily and our traditional surveys of the most prominent, important and interesting events in the world of business in a week – is a great chance to start the day not only pleasantly , but also with the use. After all, the information is always an advantage, the quality […]

Next
WP2Social Auto Publish Powered By : XYZScripts.com