Starbucks suffer a loss during its financial 3rd quarter as its same-store sales plunged 40% in the wake of the pandemic.
But the company appears positive about the future, raising the outlook for its adjusted revenues for the financial 4th quarter. Shares of the business increased more than 2% in prolonged trading.
Here’s what the business reported for the quarter ended June 28 compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:
- Loss per share: 46 cents, adjusted, vs. 59 cents expected
- Revenue: $4.22 billion vs. $4.07 billion expected
The global coffee chain reported fiscal third-quarter net loss of $678.4 million, or 58 cents per share, down from net income of $1.37 billion, or $1.12 per share, a year previously.
Expenses connected to the pandemic, like paid leave for baristas and added precaution, weighed on its profits.
U.S. same-store sales fell 40% in the quarter. The company briefly shuttered most of its U.S. coffee shops in between mid-March to mid-April, transitioning to drive-thru and delivery. Resumed stores frequently had minimized hours and minimal operations.
Its number of active rewards members fell 5% from the year-ago duration as fewer devoted clients ordered coffee. The chain recently revealed new methods for members to spend for their food and drinks, which should motivate enthusiastic coffee drinkers to join the program.