Why the Worst Is Yet to Come for Starbucks’ Earnings
Starbucks (NASDAQ: SBUX) reported a 5% decline in fiscal 2020 second-quarter revenue and a 47% drop in earnings per share due to the coronavirus outbreak. But things are going to get even worse in the near term. The coffee chain said that's because most of the coronavirus effect in the U.S. -- Starbucks' biggest market -- happened and is happening in the third quarter of its fiscal year.
During the company's earnings call last week, management said that while coronavirus hurt its U.S. business for the last two or three weeks of the second quarter, it will hurt all 13 weeks in the third quarter. As a result, the effect on revenue and operating income will be "much more substantial" in the third quarter, according to chief financial officer Patrick Grismer.
Source Fool.com
