View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
January 29, 2020updated 13 Feb 2020 11:49am

Starbucks warns coronavirus outbreak may affect financial performance

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


Visit our Covid-19 microsite for the latest coronavirus news, analysis and updates


Follow the latest updates of the outbreak on our timeline.

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.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Verdict Food Service