SBUX Starbucks Corporation

By Heather Haddon 

Starbucks Corp. said 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 trends in China improved.

"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 shares fell 3% Thursday and are off 11% since the start of the 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.

While the number of new cases reported in China has dropped in recent days, the outbreak has gained pace in other countries including South Korea and Italy. Starbucks has 1,380 stores in South Korea and 10 in Italy.

Mr. Johnson said the Seattle-based company is prepared to respond if the virus becomes a public-health issue in the more than 80 markets it serves.

"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," he said.

Write to Heather Haddon at heather.haddon@wsj.com

(END) Dow Jones Newswires

February 27, 2020 16:37 ET (21:37 GMT)

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