Starbucks exceeded revenue expectations but lost on everything else

By: Miguel A. Rodriguez

09:45, 14 September 2020

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The coffee giant felt the pandemic’s effects

Starbucks released its financial report, and the figures were below expectations but somehow satisfying given the current global situation.  

The company lost $678.4 million, or 58 cents per share, compared to last year's earnings of $1.37 billion, with an EPS of $1.12.

Its revenue fell by 38% to $4.2 billion, with a 46 cents loss. The revenue expected was $4.1 billion, with an adjusted loss of 59 cents per share. The same-store sales fell 40%, as it closed its stores between mid-March to mid-April and transitioned to a drive-thru and delivery-only services.  

The 41 cents dividends will be payed on August 7, from the initial date of August 21.

To reduce the risk of infections, the company announced that it would add 50 more Starbucks pick-up locations in the next year and a half.

Regardless of the pandemic, Starbucks opened 130 new cafes globally after it previously announced that by 2021 it would close nearly 400 locations worldwide.

During the regular trading hours, the stock price fell by 2.4%. 

The pandemic did a lot of damage in the past quarter! Read all about it on CAPEX.com!

Sources: marketwatch.com, cnbc.com


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