business

Starbucks seeing recovery as global stores reopen

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By DEE-ANN DURBIN

Starbucks says it’s seeing steady recovery as its stores reopen, but it expects the impact of the new coronavirus to last well into the fall.

The coffee giant said Tuesday that revenue in its fiscal third quarter plummeted 38% to $4.2 billion. That was still ahead of Wall Street’s forecast of $4 billion, according to analysts polled by FactSet.

The Seattle-based company said 97% of its company-operated stores around the world are now open, including 99% of stores in China and 96% in the U.S. But some franchised locations remain closed, especially at airports and on college campuses.

Global same-store sales were down 40% for the April-June period, beating analysts’ forecast of a 42% drop. Starbucks said it expects global same-store sales to be down in a range of 12% to 17% in its fiscal fourth quarter and for the full year.

Starbucks said it expects adjusted earnings between 18 cents and 33 cents per share in its fiscal fourth quarter. Analysts are expecting 27 cents a share, according to FactSet.

Starbucks reported a net loss of $678 million for the third quarter, down from a $1.4 billion profit a year ago. Adjusted for one-time items, the company lost 46 cents per share. That was far better than the 59-cent loss analysts forecast.

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