Starbucks warns coronavirus outbreak may affect financial performance

29th January 2020 (Last Updated February 13th, 2020 11:49)

US-based coffeehouse chain Starbucks has warned that the deadly coronavirus outbreak in China is expected to affect its financial outcome.

Starbucks warns coronavirus outbreak may affect financial performance
Starbucks warns deadly coronavirus outbreak could affect the company’s financial performance. Credit: Starbucks Corporation.

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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.

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.