NEWS
Coronavirus Pandemic puts Starbucks ate the loss of $3 million in revenue
- Shares of company and stocks faced a fall
- Positive cashflow is expected by the end of June
- Company plans to upgrade its cafes in next few years
June 11th, 2020: Coronavirus pandemic as expected has put the famous company, Starbucks, at a loss of $3.2 million in revenue. Until Wednesday, 3% fall was seen in shares of company while 10% in market value. The quarter ends on 28th June. The company has adjusted its losses per share of 55 cents to 70 cents. Improvement is highly expected. Positive cashflow is hoped for by the end of June.
Two largest markets of company suspect to face 10% to 20% downfall in same store sales that is United states and China. They suspect the US same store sales to be negative but as the fourth quarter fiscal ends, same store growth in China will go flat.
Store sales performance is making improvements and recovery in business can be clearly seen. The stakeholder of Starbucks received an appreciation letter b CEO Kevin Johnson and CFO Pat Grismer that the brand is very strong, they are fighting well and have passes the hard phase.
The company has made some changes in May regarding working hours and plans. This caused the sales in US to face 43% of tumbling. 91% of the stores were opened again by the end of the month but 32% of decrease in sales was faced in the last week of May.
21% of fall in sales in China was seen in may while 32% in April. As compared to the last year, there 14% of decrease in sales in May’s last week. The operating hours before pandemic ae being used in Chinese cafes now where 70% of seating is available. In these two months, 57 new net stores were opened in China. America has also resumed its working.
The company is planning to own 400 cafes in coming one and a half year. It also plans to make certain amendments for customers within next few years. Urban markets like Chicago, New York and san Francisco are to be provided with more pick up stores. The very first mobile pick up was launched in November. Renovations will be made in café layouts making things easy and comfortable at busy locations.
Starbucks has not tapped any of the credit extensions yet although it claimed to correct its fixed charge inclusion proportion pledge of credit agreement for $3 billion through final quarter if monetary in 2021.
