Starbucks takes $3 billion hit to revenue during pandemic

AP Business Writer (AP) — Starbucks expects to lose more than $3 billion in revenue in its fiscal third quarter due to the new coronavirus.

The Seattle-based coffee giant says the virus outbreak will also slash its operating income by up to $2.2 billion for the quarter, which ends June 28.

Starbucks says 95% of its 8,000 U.S. company-run stores are now open with varying levels of service.

U.S. sales at established stores are improving but fell 32% in the last week of May. In China, same-store sales were down 14%.

Starbucks expects a third-quarter adjusted loss of  55 cents to 70 cents per share, far higher than the 16-cent loss analysts expected.

Starbucks shares fell 5% to $78.55 in morning trading.