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Look beyond China concerns at Starbucks

Starbucks coffee cup on the table

Strong first quarter results were overshadowed by a gloomy outlook as management warned that the disruption of the coronavirus in China could have a material impact on 2020 numbers. We have assessed whether investors need to be worried.


The rising number of indie coffee shops specialising in almond milk lattes and avocado toast have dampened the outlook for Starbucks (US: SBUX) in recent years. In a world of dying high streets and polarised politics, fewer consumers want to support big bad business. And it doesn’t get much bigger or badder than Starbucks: the US-founded king of plastic cups, which operates over 31,000 stores globally.

But Starbucks is working on its image. It was one…

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