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COVID-19 And Starbucks: Short-Term Pain, Long-Term Gain

From: seekingalpha.com

Last week, I started to “update” my analysis of companies, which I already covered in the past, but with a special focus on the business model with regard to COVID-19 and the upcoming recession. One of the companies covered so far, is the fast-food chain McDonald’s (MCD), which will be affected in a negative way by COVID-19 as well as the upcoming recession.

Starbucks’ (SBUX) business model is in some ways similar to McDonald’s business model and the company will also be affected by store closures and social distancing, but Starbucks has also a well-established take away business, which will soften the negative impact. And compared to McDonald’s we have one big advantage: our analysis can in parts rest upon the already released preliminary numbers for the last quarter.

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