Starbucks closes 200 more stores, what's the fallout from this?

Starbucks closed 200 more stores, what is the cause of this consequence? There are three main reasons.

The 1st reason: to reduce operating cost expenses. Starbucks operating income has decreased more, and profits fell more than 50% year-on-year, in the initial performance report can be seen, Starbucks net profit of 393 million dollars, down 51.1% year-on-year, so that now Starbucks ability to make money has been in a sharp decline, and even have to face the danger of increased operating expenditure costs. If the cost of operating expenses increase significantly and operating income is lower, in this case, Starbucks profit may be a loss, in order to avoid this situation, close some of the poor performance of the store is also a very good choice.

The 2nd reason: the impact of the epidemic. As we all know, the epidemic in the United States is still relatively serious, then this time many people choose to stay at home, which directly allows Starbucks customers to reduce a lot more than just Starbucks, a lot of food and beverage industry are faced with the same situation, in this case how to save money on the cost of a very important issue, and the cause of all of this is because of the impact of the epidemic.

The 3rd reason: business strategy change. This time, Starbucks just closed 200 stores in the United States and Canada, but in other places Starbucks also opened many new stores, this shows that Starbucks business strategy has changed, business is not good place to choose to close more stores, and business is good place to choose to open more stores.

Comprehensive and see, Starbucks closed 200 stores, the key is still affected by the epidemic, while the decline in operating profits is also a more important reason, because operating profits decline, while the cost of expenditure remains unchanged, then this situation is very easy to cause the situation of the loss, the loss of business will have a significant impact on the price of the stock.