Starbucks Corp (NASDAQ: SBUX) is trading lower, possibly in sympathy with Yum China Holdings inc (NYSE: YUMC), which dipped after providing a business update and noting a negative impact from the COVID-19 Delta variant.
At the peak of the outbreak in August, Yum China said it closed or offered only takeaway and delivery services at more than 500 of its stores. Same-store sales in August 2021 declined by nearly 20% compared to August 2019.
"Strict public health measures were implemented across the country, including closures of many tourist locations. These actions led to substantially lower travel volume, cancelled summer holiday trips and fewer social activities, which significantly impacted the restaurant industry," Yum China said in its business update.
"While the outbreak has subsided in recent days and restaurant traffic is gradually recovering, our operations continue to be heavily impacted," Yum China added.
Starbucks is one of the most widely recognized restaurant brands in the world, operating 33,300 stores across 83 countries as of June 2021.
Starbucks primarily generates revenue from company-operated stores, with additional sales coming from royalties, sales of equipment and products to license partners, ready-to-drink beverages, fresh coffee and single-serve coffee products.
SBUX Price Action: Starbucks has traded as high as $126.32 and as low as $81.75 over a 52-week period.
The stock was down 4.10% at $113.99 at time of publication.
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