US coffeehouse chain Starbucks said that the coronavirus (Covid-19) outbreak will decrease its revenue by up to $430m this quarter.
The American coffeehouse chain estimates that the impact will be temporary as several of its stores have resumed operations after they were closed in a response to the outbreak.
The company also assured its investors that operations in China are quickly getting back to normal.
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However, the company noted that it is too early to determine the impact of the disease on its full-year results.
Starbucks said: “Although there are near-term financial implications, our long-term, optimistic outlook for the growth potential of Starbucks is undiminished.”
China is Starbuck’s second-biggest market after the US where it operates 4,292 coffee shops.
Last month, Starbucks announced that the company has started reopening Chinese stores with 85% of its network already operational.
At the end of this quarter, the coffeehouse chain said that store opening rates will reach approximately 95%.
However, some of the new store openings planned this year will be postponed due to the outbreak.
Recently, Starbucks decided to temporarily stop using personal and staying-in cups in the US and China as part of its efforts to contain the spread of the coronavirus.
Meanwhile, the Covid-19 death toll reached 3,650, with the number of confirmed cases rising to 107,671.