Starbucks (SBUX) – Get Report is in a tough situation. While most of its revenue comes from the U.S., China is becoming a larger and larger portion of its business. That’s why the stock has been under pressure this week, slipping 5.5% over the past few trading sessions as the coronavirus spreads in China.
The virus has resulted in the closure of many businesses, and will affect Starbucks, Disney (DIS) – Get Report, Luckin Coffee (LK) – Get Report and many others. One analyst even said Starbucks is the most exposed stock due to the coronavirus.
Complicating matters will be earnings, which Starbucks will report on Tuesday after the close. The most recent quarter, which ended Dec. 31, should be fine. But management’s outlook and commentary on the China situation will be one for investors to watch closely.