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Holidays were very happy for Starbucks

But coronavirus fears may slow momentum

By DEE-ANN DURBIN, Associated Press
Published: January 28, 2020, 6:16pm
2 Photos
FILE - In this Jan. 16, 2020, file photo customers come and go at a Starbucks on South Claiborne Ave. in New Orleans.
FILE - In this Jan. 16, 2020, file photo customers come and go at a Starbucks on South Claiborne Ave. in New Orleans. (AP Photo/Gerald Herbert, File) Photo Gallery

It was a happy holiday at Starbucks, but the company’s sales momentum could start to slow due to the coronavirus outbreak in China.

Starbucks said it had intended to raise its full-year earnings guidance Tuesday, but uncertainty about China put that on pause. Starbucks said it has closed more than half of its stores in China due to coronavirus.

China’s 4,292 Starbucks stores brought in 10 percent of the company’s revenue during the October-December period, so the closure will affect earnings, the company said. But it’s not yet clear how much of an impact there will be. Starbucks had expected full-year revenue growth in the 6 percent to 8 percent range and same-store sales growth of 3 percent to 4 percent.

“We remain optimistic and committed to the long-term growth potential in China,” Starbucks President and CEO Kevin Johnson said in a conference call Tuesday with analysts.

He said the holiday season was one of the best in company history.

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