Starbucks (Seattle) reported that its U.S. same-stores sales fell 5 percent during its fiscal first quarter after a surge of COVID-19 cases led to harsher dining restrictions. Shares fell about 1 percent in extended trading.
Same-store sales fell just 3 percent in October but slid to 8 percent by December. CEO Kevin Johnson said the company had a “very strong” holiday season and Starbucks gift card activations exceeded the company’s projections, reports CNBC.
In China, Starbucks’s second-largest market, same-store sales turned positive for the first time since the pandemic began. Its same-store sales rose 5 percent, although transactions still declined compared with the same time a year ago.
Next quarter, the company is predicting U.S. same-store sales growth of 5 percent to 10 percent. January same-store sales are expected to turn positive after December’s downward slide, according to executives.