Starbucks Says U.S. Same-Store Sales at 60%-65% of Prior Year

Starbucks in the past week regained 60%-65% of year-earlier U.S. same-store sales, the CEO reported.

Starbucks's  (SBUX) - Get Report chief executive said Thursday that over the past week the coffee-bar giant regained 60% to 65% of year-earlier U.S. comparable-store sales as it reopened under modified conditions due to the coronavirus pandemic.

Shares of the Seattle company, which began reopening stores in the second week of May, were at last check-up 1.4% to $78.81.

CEO Kevin Johnson said in a letter to workers that stores in China have recovered about 80% of same-store sales. 

The company said that it continued to expect more than 90% of U.S. company-operated stores to be open by early June, under modified operations and hours.

"Over the past two weeks in the U.S., we are seeing a positive response from customers as they adapt their daily rituals to this 'now normal'," Johnson said in the letter.

Johnson said that prior to the outbreak, roughly 80% of its orders were “on the go,” driven largely by the Starbucks mobile app. 

He said the company will accelerate a store transformation that includes moving from low-traffic malls to locations with drive-through lanes. The company is looking to speed that effort in 12 to 18 months instead of the original three-to-five-year plan.

Separately, Starbucks this month unveiled a reusable color-changing cup. The Confetti Cold Cup changes colors when a cold drink is poured inside. 

The 24-ounce cup will be available for $4. Starbucks will continue its policy of not refilling reusable cups during the coronavirus pandemic. The company temporarily suspended the use of personal cups and tumblers in March.

And also on Thursday, Starbucks unveiled a summer-inspired food and drink menu in the U.S. and Canada. It includes the iced guava-passion-fruit drink and a grilled chicken and hummus protein box.