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Starbucks sales fall short as China hit by COVID-19 resurgence -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO A Starbucks sign can be seen in one of Starbucks’ stores located in Los Angeles (California), U.S.A, October 19, 2018. REUTERS/Mike Blake/File Photograph GLOBAL WEEK Ahead

(Reuters). Starbucks Corp (NASDAQ:). Market estimates for quarterly sales of same-stores in the fourth quarter were missed by a COVID-19 revival in China on Thursday. This resulted in stores being closed in many major cities in China and overshadowed strong performances from its U.S. operations.

Yum China Holdings (NYSE 🙂 Inc. has also been affected by fresh lockdowns in an effort to stop the spread of Delta variants in China’s largest market for Starbucks. In the fourth quarter of 2014, the coffee chain saw a 7% drop in comparable China sales to its original forecast. This was despite a 22% increase in U.S. sales.

However, analysts believe that China’s pressures should not be permanent as China’s restrictive measures ease. Starbucks in Seattle will open more shops in China’s second largest economy in an effort to spur growth.

Refinitiv IBES data showed that worldwide comparable sales increased by 17% over the average analyst estimate of 18.5%.

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