Starbucks same-store sales beat on delivery, drive-thru boost

Starbucks same-store sales beat on delivery, drive-thru boost

Starbucks Corp on Tuesday reported a smaller-than-expected drop in quarterly comparable store sales as more people used its drive-thru and delivery options to buy coffee and food during coronavirus-driven lockdowns.

FILE PHOTO: The spread of the coronavirus disease (COVID-19) in New York
FILE PHOTO: A man wearing a mask walks in front of a shuttered Starbucks as the spread of the coronavirus disease (COVID-19) outbreak continues in the Manhattan borough of New York City, U.S., April 27, 2020. REUTERS/Lucas Jackson/File Photo

REUTERS: Starbucks Corp on Tuesday reported a smaller-than-expected drop in quarterly comparable store sales as more people used its drive-thru and delivery options to buy coffee and food during coronavirus-driven lockdowns.

The Seattle-based company, like many restaurants and coffee chains, took a big hit from government-imposed restrictions to check the spread of the pandemic, prompting it to rely more on its delivery and drive-thru services to make up for lost business.

Third-quarter comparable sales fell 40per cent globally and 41per cent in the Americas. Analysts had forecast a worldwide decline of 42.05per cent and a 42.82per cent drop for the Americas, according to IBES data from Refinitiv.

Chief Executive Officer Kevin Johnson said global business was steadily recovering and a vast majority of its stores around the world had reopened.

Total net revenue slumped about 38per cent to US$4.22 billion, but still beat the average analyst estimate of US$4.07 billion.

(Reporting by Nivedita Balu in Bengaluru; Editing by Anil D'Silva)

Source: Reuters

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