“We’ve accelerated some strategic initiatives that really future-proof the company,” Starbucks CEO Kevin Johnson says about the coronavirus impact.
But the company appears optimistic about the future, raising the outlook for its adjusted earnings for the fiscal fourth quarter.
The global coffee chain reported fiscal third-quarter net loss of $678.4 million, or 58 cents per share, down from net income of $1.37 billion, or $1.12 per share, a year earlier. Costs related to the pandemic, like paid leave for baristas and added safety measures, weighed on its profits. U.S. same-store sales fell 40% in the quarter. The company temporarily shuttered most of its U.S. cafes between mid-March to mid-April, transitioning to drive-thru and delivery only. Reopened locations often had reduced hours and limited operations.
Despite the pandemic, Starbucks opened 130 net new cafes worldwide during the quarter. The company previously announced that it would close up to 400 locations through 2021 and put more emphasis on cafes built for mobile pick-up, drive-thru orders and curbside pick-up.
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