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Why the Worst Is Yet to Come for Starbucks’ Earnings

Adria Cimino, The Motley Fool
·4-min read
Why the Worst Is Yet to Come for Starbucks’ Earnings

Starbucks (NASDAQ: SBUX) reported a 5% decline in fiscal 2020 second-quarter revenue and a 47% drop in earnings per share due to the coronavirus outbreak. The coffee chain said that's because most of the coronavirus effect in the U.S. -- Starbucks' biggest market -- happened and is happening in the third quarter of its fiscal year. During the company's earnings call last week, management said that while coronavirus hurt its U.S. business for the last two or three weeks of the second quarter, it will hurt all 13 weeks in the third quarter.

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