SA: Starbucks CFO talks cash burn

SEEKING ALPHA reports:

During a call with UBS, Starbucks (SBUX +2.0%) CFO Pat Grismer outlined the impact of store closings on profit and cash burn.

“So when you think about the shape of our store closures and store re-openings, it was in that third week of March that we closed more than half of our stores in the US and we were only operating at drive-thru, and even with that it reduced volumes.

“From the middle of March through the end of April really into the second week of May, because last week represented the second week of our fiscal month of May. So it’s really for a period of, call it eight weeks there that our peak cash burn rate, weekly cash burn rate of $125 million was sort of the steady state, if you will.”

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