Starbucks takes $3 billion hit to revenue during pandemic

Starbucks takes $3 billion hit to revenue during pandemic | iNFOnews.ca
FILE - In this May 21, 2020 file photo, patrons to a Starbucks in the Chicago neighborhood of Hyde Park walk past stacked chairs and tables. Starbucks says that the COVID-19 pandemic caused an approximately $3 billion to $3.2 billion decline in its third-quarter consolidated revenue. The coffee chain said Wednesday, June 10, that the virus outbreak also lowered operating income by about $2 billion to $2.2. billion. (AP Photo/Charles Rex Arbogast)

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.

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