The world’s largest coffee chain reported a decline in sales worldwide. Attendance drops of coffee houses, despite the advertising and new products.

A larger-than-expected drop in quarterly revenue was announced by Starbucks. In the quarter ended December 27, the chain’s comparable revenue dropped 5 percent. A 3.4 percent decrease in this measure had been predicted by Refinitiv analysts.

Starbucks stock dropped 3.2 percent after the report was published on Wednesday, but then made up for some of the loss. 1.6 percent of the shares closed down, dipping to $103.

In several nations, a recent outbreak of the COVID-19 pandemic and the re-introduction of quarantine measures have contributed to a decline in coffee shop attendance, according to Reuters. This loss will not be accounted for by the company’s attempts to raise demand due to the introduction and promotion of new goods.

In the US, the decline in comparable revenue was greater than anticipated and amounted to 5%.

Sales rose at the same time in China, which is Starbucks’ second-largest market. Thanks in part to the increasing success of the Rewards coffee chain loyalty scheme and the restoration of consumer behaviors that occurred before the coronavirus pandemic, comparable revenue in China rose by 5 percent in the quarter. Shoppers have invested more cash on the order, helping to make up for fewer orders.

The three-month net sales of the coffee chain plunged 5 percent to $6.7 billion, beating analysts’ estimates of $6.9 billion. Compared to $0.74 in the prior year, earnings per share were $0.53. The corporation attributed the reduction in earnings to the detrimental effects associated with the pandemic of COVID-19.

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The coffee chain launched 278 new locations during the year, which is 4 percentage points higher than last year. The organization has already opened 32.9 thousand coffee shops around the world, of which Starbucks owns 51 percent.

In the coming months, Starbucks expects business to rebound. Comparable revenues in the United States will rise by 5-10 percent in the second quarter, according to the company’s estimates, and in China, they will increase almost double relative to the amount of last year. Starbucks expects worldwide comparable revenue to increase by 18-23 percent for the full year. Earnings, Starbucks estimates, would vary from $2.42 to $2.6 per share for the entire fiscal year.

Starbucks Corporation (SBUX) was stable by +0.29% to $98.15 on Thursday.

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