Starbucks in Caymana Bay, Grand Cayman.

Starbucks recovering as stores reopen globally

Starbucks in Caymana Bay, Grand Cayman.

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.

Starbucks in Turks and Caicos.

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

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

A person sits outside of a closed Starbucks Corp. coffee shop prior to a quarantine order in Santiago, Chile, on Thursday, March 26, 2020.

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

Starbucks reported a net loss of US$678 million for the third quarter, down from a US$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.