Starbucks' COVID-19 Recovery Accelerates
The initial lockdown phase of the COVID-19 pandemic decimated Starbucks' (NASDAQ: SBUX) business earlier this year. With many cafes closed and others open only for takeout, comparable sales declined as much as 65% in the U.S. -- Starbucks' largest market -- back in the spring.
However, Starbucks' fiscal fourth-quarter results, released late last week, showed that the coffee giant is bouncing back quickly. Indeed, the pandemic has accelerated strategy shifts at Starbucks and changes to the industry landscape, increasing the company's potential for long-term earnings growth.
During the third quarter of fiscal 2020 -- the period ending in late June -- temporary store closures and lower traffic at stores that remained open pressured Starbucks' results. Revenue plunged 38% year over year on a 40% decline in comparable store sales. That caused Starbucks to swing to an adjusted net loss of $0.46 per share, compared to adjusted earnings per share of $0.78 in the prior-year period.
Source Fool.com
