Latest Videos

{{ currentStream.Name }}

Related Video

Continuous Play:

The information you requested is not available at this time, please check back again soon.

More Video

Jul 28, 2020

Starbucks says sales slump partially offset by larger orders

A customer wearing a protective mask orders outside of a Starbucks coffee shop in the Brooklyn borough of New York, U.S., on Monday, April 27, 2020. Starbucks Corp. is scheduled to release earnings figures on April 28.

Security Not Found

The stock symbol {{StockChart.Ric}} does not exist

See Full Stock Page »

Starbucks Corp. reported a deep sales decline in its latest quarter, with consumers buying more per order, but visiting much less frequently.

Global same-store sales — a key gauge of restaurant performance — fell 40 per cent in the quarter that went through June. That’s largely in line with the estimate from Consensus Metrix. Revenue, meanwhile, was US$4.2 billion, beating analysts’ average projection.

Starbucks, like its restaurant peers around the globe, has been trying to adapt to a new normal where diners prefer to order delivery and hardly anyone pops in for a latte on the way to work or school. The coffee seller this summer accelerated the rollout of its “pickup” store concept, with smaller-format locations that don’t have customer seating, but with fewer drive-thrus and less delivery penetration than some rivals, the chain has a lot of work to do to draw in customers in the new era of consumer caution.

In China, a key market for Starbucks that is farther along in its recovery from COVID-19, comparable store sales declined 19 per cent in the quarter. In the U.S., same-store sales were down 40 per cent. But while overall transactions are down, when customers do treat themselves to Starbucks, they’re spending more. Average ticket — or the total bill — was up 23 per cent in the quarter globally.

Starbucks shares rose in late trading.