Starbucks Reports Smaller-Than-Expected Drop in Comparable Store Sales

Reuters  |

Image source: Starbucks

(Reuters) - Starbucks Corp on Tuesday reported a smaller-than-expected drop in quarterly comparable store sales as more people used its drive-thru and delivery options to buy coffee and food during coronavirus-driven lockdowns.

Trade Commission-FREE with Tradier Brokerage

The Seattle-based company, like many restaurants and coffee chains, took a big hit from government-imposed restrictions to check the spread of the pandemic, prompting it to rely more on its delivery and drive-thru services to make up for lost business.

Third-quarter comparable sales fell 40% globally and 41% in the Americas. Analysts had forecast a worldwide decline of 42.05% and a 42.82% drop for the Americas, according to IBES data from Refinitiv.

Chief Executive Officer Kevin Johnson said global business was steadily recovering and a vast majority of its stores around the world had reopened.

Total net revenue slumped about 38% to $4.22 billion, but still beat the average analyst estimate of $4.07 billion.

Reporting by Nivedita Balu in Bengaluru; Editing by Anil D'Silva.


Source: Reuters

Market Movers