Coronavirus puts Starbucks among array of U.S. chains shuttering in China
The outbreak could have a big effect on their bottom lines
Starbucks has temporarily closed half of its stores in China amid the deadly coronavirus outbreak — and it's far from the only U.S. chain shutting down its locations where the disease is concentrated.
McDonald's and Starbucks announced on Friday they had temporarily suspended business at select locations in the Wuhan area, the capital of the Hubei province, in hopes of preventing the virus’ spread.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SBUX | STARBUCKS CORP. | 88.75 | +0.88 | +1.00% |
| YUM | YUM! BRANDS INC. | 141.80 | +1.69 | +1.20% |
| MCD | MCDONALD'S CORP. | 276.69 | -0.22 | -0.08% |
CORONAVIRUS COULD BE A PROBLEM FOR STARBUCKS
Starbucks has upped its number of shuttered locations, something that could affect its earnings. China's 4,292 Starbucks stores brought in 10 percent of the company's revenue during the October-December period last year.
"As we begin our fiscal second quarter, I want to acknowledge the dynamic situation our partners in China are navigating as health officials respond to the coronavirus," Starbucks CEO Kevin Johnson said on Tuesday. "As events unfold, we will be transparent with all stakeholders in communicating how we are responding to these extraordinary circumstances and the implications for our near-term business results."
On China National Day of 2012, a Starbucks logo is seen outside a busy Starbucks store in a big shopping center -- Yuyuan Tourist Mart. A red Chinese national flag is hanging above the logo, along with other Chinese store signs.
"We remain optimistic and committed to the long-term opportunity in China, building on our brand heritage and 20-year legacy of profitable growth," Johnson said.
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In addition, a spokesperson for Yum China confirmed to Fox News that "most" KFC and Pizza Hut locations in the Hubei province have been closed for the foreseeable future due to coronavirus concerns.
Meanwhile, several Dairy Queen shops in Wuhan have been closed since Jan. 22, per Business Insider.
Thousands of people have been sickened by the virus and more than 100 have died. Of the more than 6,000 cases globally, 99 percent and all deaths have been in China.
Officials say the death rate from the virus is about 2 percent.
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The Associated Press, Fox News' Janine Puhak and FOX Business' Ken Martin contributed to this report.