Starbucks Corporation (NASDAQ:SBUX) was quick to notice the effects of the coronavirus outbreak, and it sent out a warning to investors. It warned that its fiscal second-quarter was going to be affected by the effects of the deadly virus. According to it, the same-store sales would witness an almost 50% decline.
The nature of investments
The company has come out again, but this time around to give a word of hope. It says that there may be some positive changes in its business in China. Asides from that, it revealed that its investments in the US remained quite stable, considering that there was a decline of just 1% in the trading.
In its filing to the Securities and Exchange Commission, the coffee chain outlined that its affected stores would lose $430 million in China.
The United States and its take
Coronavirus is a serious scourge that has taken the world by storm. Many lives have been lost in different countries, and the US is trying its best to look for solutions. It was sometime back that the United States president met industry leaders, researchers, policymakers, and experts in health and wellness from different companies. The president wanted them to agree on something that would help in fighting coronavirus.
The US leader asked those attending the meeting whether or not they were ready to act as a unit. They agreed to the call after the realization that working as a unit would help them get the best results soon. Working separately on different vaccines wouldn’t work the best way, and they will be joining hands to find a solution. Each of the parties will pull along with their resources and expertise in a bid to make the initiative successful.
The widespread COVID-19 outbreak is a major cause for alarm. Matters have gone against expectations. The company had predicted a sales growth of about 3% for the second quarter, but that did not happen after the virus kicked matters out of proportion. China was hit hard, and the impact is felt until today. Many stores were closed down at the start of February as the country focused on staging a fight against the deadly coronavirus.
Starbucks says that it has plans underway to re-open its stores by the end of the quarter. It sees some signs of recovery in the country and continues hoping for the best.