Starbucks said that the COVID-19 pandemic would slash revenue by $3 billion to $3.2 billion for the fiscal third quarter ending this month.
Starbucks also reported in a Securities and Exchange Commission filing that U.S. same-store sales fell 43% in May from a year earlier. That was improved from the 63% dive in April.
Comparable-store sales slid 32% in the final week of May, representing the sixth consecutive week of improvement.
In addition, it’s making a transition toward pickup stores in the U.S.
“We’re accelerating plans to transform our store portfolio over the next 18 months,” Starbucks Chief Executive Kevin Johnson said in a letter to shareholders.
“Based on the preferences that we’re seeing, we are pulling forward our original plans to evolve our retail footprint, particularly in major U.S. cities to have a blend of traditional Starbucks cafés and Starbucks Pickup locations.”
This includes the expansion of new Starbucks pickup stores in New York, Chicago, Seattle and San Francisco, and the design of convenience-led enhancements such as curbside, drive-through and walk-up windows in suburban areas.
In the video above, Jim Cramer breaks down when he would pick up some shares of Starbucks.
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