Starbucks Reopens Stores in China--Update
February 27 2020 - 11:41AM
Dow Jones News
By Heather Haddon
Starbucks Corp. says it has reopened hundreds of its China
stores that closed in response to the coronavirus outbreak.
Chief Executive Kevin Johnson said Thursday that 85% of the
coffee giant's stores in its second-biggest market were now
operating after conditions in China improved. The number of new
cases reported in China has dropped in recent days, even as the
outbreak has gained pace in other countries including South Korea
and Italy. Mr. Johnson said the company is prepared to respond if
the virus becomes a public health issue in the more than 80 markets
it serves.
"With the number of new cases in China slowing, we are seeing
the early signs of a recovery in the region," Mr. Johnson said in a
letter Thursday.
Starbucks said last month it had closed more than half of its
roughly 4,290 stores in China in response to the virus, one of the
largest levels of closures for a U.S.-based restaurant chain.
Roughly 640 stores in China remain closed.
Starbucks's stock is down 12% so far this year. The company said
in a filing that it expected the closures in China to materially
affect the results of its international business this year.
"We are staying close to the situation in every single market
through connections with local health officials and are prepared to
take whatever actions necessary, market by market, to ensure the
health and well-being of our partners and customers," Mr. Johnson
said.
Write to Heather Haddon at heather.haddon@wsj.com
(END) Dow Jones Newswires
February 27, 2020 11:26 ET (16:26 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Starbucks (NASDAQ:SBUX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Starbucks (NASDAQ:SBUX)
Historical Stock Chart
From Jul 2023 to Jul 2024