Why Starbucks Stock Dropped Today
Shares of Starbucks (NASDAQ: SBUX) have dropped today, down by 4% as of 2:30 p.m. EDT, after the company said revenue in the fiscal third quarter would take a hit of $3 billion to $3.2 billion due to the COVID-19 pandemic. The coffee slinger is also closing 400 stores over the next 18 months.
In a letter to shareholders, Starbucks said that comparable store sales in the U.S. had started to recover as lockdown restrictions have eased in various states. Over 90% of company-operated stores were open at the end of May, with many of the locations operating with reduced hours. U.S. comps were negative 43% in May, an improvement compared to the negative 63% in April.
Image source: Starbucks.
Source Fool.com
