Starbucks Expects COVID-19 to Slash Profits in Half
With social distancing requirements going into effect last month, it was a foregone conclusion that earnings results were going to take a hit this quarter. Starbucks (NASDAQ: SBUX) issued preliminary financial results for the fiscal second quarter on April 8 that made it official.
The company expects earnings under generally accepted accounting principles (GAAP) to be approximately $0.28. Non-GAAP (adjusted) earnings are expected to be $0.32. That is down from the year-ago adjusted earnings of $0.60. Starbucks will release second-quarter results on April 28.
While the businesses in China and South Korea are recovering, the U.S. business is still working through the trough, with 44% of company-operated locations functioning but with modified store hours.
Source Fool.com
