Starbucks coronavirus problem in China

Management is concerned over the impact of the coronavirus

Investors missed out on hearing Starbucks management raise its full-year earnings forecast on Tuesday. That announcement is on hold on concerns over what impact the coronavirus will have on sales.

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China's 4,292 Starbucks stores brought in 10 percent of the company's revenue during the October-December period, so the closure will affect earnings, the company said.

CORONAVIRUS SPARKS STARBUCKS, MCDONALD'S CLOSURES IN CHINA

Starbucks had expected full-year revenue growth in the 6 percent to 8 percent range and same-store sales growth of 3 percent to 4 percent.

“We remain optimistic and committed to the long-term growth potential in China," Starbucks President and CEO Kevin Johnson said in a conference call Tuesday with analysts.

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Starbucks shares fell 1.6 percent to $87.20 in extended trading following the earnings report.

TickerSecurityLastChangeChange %
SBUXSTARBUCKS CORPORATION87.36-1.24-1.40%

The holiday season was one of the best in the company's history.

A combination of new stores and solid foot traffic helped the Seattle-based coffee giant handily beat Wall Street's forecasts in the October-December period.

Starbucks' earnings rose 16 percent to $886 million in the fiscal first quarter. Earnings, adjusted for non-recurring items like restructuring charges, were 79 cents per share. That beat Wall Street's forecast of 76 cents.

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Starbucks said same-store sales — or sales at stores open at least 13 months — jumped 5 percent worldwide in the October-December period, ahead of analysts' forecast of 4.4 percent. Revenue was up 7 percent to $7.1 billion, in line with analysts' forecasts.

The Associated Press contributed to this article.