Starbucks’ grande-sized sales drop in China squeezes profits
February 3, 2023
Starbucks’ quarterly sales decline in China was four times worse than the coffee chain expected and it has no “line of sight” into when business there will fully recover, the company said on Tuesday, sending its shares down 2.2% in extended trading.
Starbucks Corp’s (SBUX.O) comparable sales in China fell 29% in its first fiscal quarter ended Jan. 1, pulling international comparable sales 13% lower.
Investors are scrutinizing global brands like Starbucks that have significant exposure to China as they worry about the lingering financial impact of the pandemic there.
While the country has largely abandoned its zero-COVID policy and began reopening in early December, fewer people are picking up their Starbucks coffees at stores due to widespread COVID-19 outbreaks.