Starbucks takes $3 billion hit to revenue during pandemic

Friday, June 5, 2020, Vol. 44, No. 23
The Associated Press

Starbucks took a virus-related revenue hit potentially exceeding $3 billion in its third quarter.

The brewer said in a regulatory filing Wednesday that the virus outbreak also slashed its operating income between $2 billion and $2.2. billion as the virus raged.

Starbucks was forced to close its stores to customers, but continued to operate pick-up and other services in most locations. The Seattle company said 95% of U.S. company-run stores are in operation at varying levels of service, just slightly lower than operations globally.

Starbucks provided a preliminary estimate for a third-quarter adjusted loss of about 55 cents to 70 cents per share. Analysts polled by FactSet predict a loss of 16 cents per share.

Shares fell nearly 3% before the opening bell.