Starbucks last night reported a bigger than expected fall in quarterly sales as the renewed surge in coronavirus cases in the US kept customers at home.
The world's largest coffee chain's global same-store sales fell 5% in its first quarter, which ended December 27, more than analysts' estimates of a 3.4% decline, according to Refinitiv IBES data.
The second wave of Covid-19 infections and accompanying restrictions dented traffic at the coffee chain's stores, hampering its efforts to boost demand through product launches and new drive-thrus.
Comparable sales declined 6% for the Americas region, compared with a 5.2% fall expected by analysts.
But in China, Starbucks' biggest growth market, comparable sales rose 5% as the company benefited from the popularity of its rewards programme and the return of pre-coronavirus consumer habits.
Customers also spent more money per order, helping to offset fewer transactions.
Starbucks also said its chief operating officer Roz Brewer would be leaving the company next month to take a chief executive officer role at another company.
Walgreens Boots Alliance later announced that Brewer would take the helm at the company effective from March 15.
For the second quarter, Starbucks said it expects US comparable sales to rise between 5% and 10%, while in China they were forecast to grow nearly two-fold a year after the pandemic hit the region.
The company did not change its guidance of an expected rebound overall this year, with global comparable sales expected to rise 18% to 23% in 2021.
Net revenue fell 5% to $6.7 billion, missing expectations of $6.93 billion.
The Seattle-based company has been closing some stores, adding drive-thrus to others, remaking some with smaller cafes and building a few with no seating at all as it focuses on expanding to-go options.
Overall, the company opened 278 net new stores in the quarter, for 4% year over year growth.
It now has 32,938 stores around the world, 51% of which are company-operated.
Starbucks also saw coffee lovers return to its Rewards loyalty programme, with its count of 90-day active US members increasing by 15% year over year to 21.8 million.
