SAN FRANCISCO (S&P Global Ratings) July 29, 2020--S&P Global Ratings today said that Seattle-based coffee retailer Starbucks Corp.'s (BBB+/Negative/A-2) sequential improvement in sales and expectation for profitability in the current quarter are positive developments. Still, considerable near-term operating risks remain related to the rising number of COVID-19 cases and weaker economic activity in the U.S., the coffee chain's largest market. We expect its operating results, while improving, will continue to be pressured over the coming quarters and anticipate its financial leverage will remain elevated through the first half of fiscal year 2021. These risks are reflected in our negative outlook. Global comparable store sales declined 40% during the third quarter ended June 28, 2020, from COVID-19-related headwinds, including temporary store
