Starbucks' Path to Recovery Comes Into Focus
Few companies have been battered by the coronavirus pandemic as much as Starbucks (NASDAQ: SBUX) has. As a restaurant operator, Starbucks' industry is being directly impacted by the outbreak while restaurant dining rooms across the U.S. and much of the world have closed to stop the spread of the virus.
And Starbucks first faced challenges from COVID-19 in China, starting in January, before the virus spread to the U.S. and began forcing businesses to close in March.
As a result, Starbucks' second-quarter earnings report for the January-to-March quarter showed both sales and earnings down, but a strong start to the quarter in the U.S. helped deliver solid numbers given the headwinds. Comparable sales in the period fell 10%, and overall revenue declined 5% to $6 billion. On the bottom line, adjusted earnings per share fell from $0.60 to $0.32. However, investor attention was on the company's path to recover from the crisis, as Starbucks plans to reopen U.S. stores next week.
Source Fool.com
