Starbucks said they planned to bring back the popular Pumpkin Spice Latte
The impact of the coronavirus pandemic continues to impact Starbucks but there are signs of progress, officials shared Tuesday in the company’s earnings call.
The coffee giant said revenue in its fiscal third quarter plummeted 38% to $4.2 billion, which was ahead of Wall Street’s forecast of $4 billion, according to analysts polled by FactSet.
Starbucks said in June that it will close up to 400 company-owned locations over the next 18 months. As of June 28, the company said it had “identified 78 stores for closure” under restructuring plans.
The company also announced in June that it was speeding up the expansion of “convenience-led formats” such as curbside pickup, drive-thru and mobile-only pickup locations.
Starbucks CEO Kevin Johnson said during a quarterly earnings call Tuesday that curbside pickup is expected to launch at 700 to 1,000 stores by the end of quarter.
Officials also said they planned to bring back the popular Pumpkin Spice Latte. Last year, the drink also known as PSL, returned Aug. 27. A date for the 2020 return was not announced.
This fall, the company will update the Starbucks Rewards loyalty program and app, giving more ways to pay and earn stars toward free drinks, food and other items.
The Seattle-based company said 97% of its company-operated stores around the world are now open, including 99% of stores in China and 96% in the U.S. But some franchised locations remain closed, especially at airports and on college campuses.
Global same-store sales were down 40% for the April-June period, beating analysts’ forecast of a 42% drop. Starbucks said it expects global same-store sales to be down in a range of 12% to 17% in its fiscal fourth quarter and for the full year.
Starbucks said it expects adjusted earnings between 18 cents and 33 cents per share in its fiscal fourth quarter. Analysts are expecting 27 cents a share, according to FactSet. Starbucks shares about 4% in after-market trading following the release of the earnings report.
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