US-based coffeehouse chain Starbucks has warned that the deadly coronavirus outbreak in China is expected to affect its financial outcome.
The company has already shut down nearly 2,000 restaurants and adjusted its operating hours in the Chinese market.
Starbucks operates 4,292 stores in China, making it the firm’s biggest market outside the US.
Shares of the company fell 1% in extended trading, reported Business Today.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Starbucks CEO Kevin Johnson was quoted by NPR as saying: “Our immediate focus is on two key priorities in China.
“First, caring for the health and wellbeing of our partners and customers in our stores. Second, playing a constructive role in supporting local health officials and government leaders as they work to contain the coronavirus.”
Sales in China account for 10% of the company’s global revenue.
Amidst the coronavirus outbreak, other restaurant chains such as McDonald’s and KFC have also closed stores in China.
Meanwhile, the death toll from coronavirus cases has increased to more than 132, with nearly 6,000 reported cases.
Neighbouring countries such as Japan, South Korea, Singapore, Thailand and Vietnam have also reported coronavirus cases. Five cases of the virus have also been reported in the US.