Starbucks coronavirus recovery begins as most stores reopen globally

96% of US stores are open; cafes in airports, college campuses remain closed

Shares of Starbucks have surged more than 5 percent in after-hours trading as 97 percent of its company-operated stores around the world have reopened, including 99 percent of stores in China and 96 percent in the United States.

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Approximately 87 percent of the company's licensed stores around the world are open, with temporary closures still in place for locations at airports, colleges and universities within the U.S. and Canada.

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SBUXSTARBUCKS CORPORATION75.79+0.13+0.17%

"As we continue to drive the recovery, we are also building resilience for the future by accelerating the transformation of our business in ways that will elevate the customer and partner experience and drive long-term growth," Starbucks president and CEO Kevin Johnson said in the company's third-quarter earnings press release.

Johnson added that the company is positioned to regain the positive business momentum it had before the pandemic.

FILE- This Dec. 13, 2018, file photo shows a sign for a Starbucks Coffee shop in Harvard Square in Cambridge, Mass. Starbucks says it’s seeing steady recovery as its stores reopen, but it expects the impact of the new coronavirus to last well into th

Starbucks opened 130 net new stores in the third quarter, a five percent year-over-year increase, for a total of 32,180 stores globally. Of the total stores, 51 percent were operated by Starbucks while 49 percent were licensed.

The company reported a total of 15,243 stores in the United States and 4,447 stores in China at the end of the quarter, which accounts for 61 percent of its global portfolio.

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The announcement came as the company's global same-store sales plunged 40 percent due to the coronavirus pandemic, with transactions at locations open at least 13 months dropping 51 percent while the average check increased by 23 percent.

The company reported a net loss of $678.4 million, or 58 cents per share, down from net income of $1.37 billion, or $1.12 per share, a year earlier.  Adjusted for one-time items, the company lost 46 cents per share.

Meanwhile, revenue was $4.2 billion, a 38 percent decrease from the previous year, following approximately $3.1 billion in lost sales of from temporary store closures, modified operations, reduced hours and reduced customer traffic.

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Looking ahead, Starbucks said it expects global and U.S. same-store sales to decline 12-17 percent for both the fourth quarter and full fiscal year, with China same-store sales remaining flat to a 5 percent drop for the fourth quarter and declining 15 percent for the full year.

The company expects to open approximately 300 net new stores in the United States and at least 500 net new stores in China.

In addition, Starbucks expects adjusted earnings between 18 cents and 33 cents per share for its fiscal fourth quarter and 83 cents to 98 cents for the full year.

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