American benchmark leaders like Starbucks ($SBUX) and Marriott ($MAR) are temporarily shutting down locations in the Wuhan province of China, reacting to continued fears stemming from a Coronavirus outbreak that has unnerved researchers and legislators the world over.
Business Insider's Linette Lopez notes, via SocGen, that if the Coronavirus outbreak were to continue through March, China's 6% quarterly GDP target will likely be unattainable. Wuhan - the region where multiple US businesses have temporarily suspended operations - is the capital of the Hubei province, responsible for roughly 4% of the country's GDP.
And, so far, it seems as if researchers are not able to pinpoint a cause or cure.
Our map tracks a number of US corporations with substantial operations in Wuhan. Thinknum Alternative Data recorded, as of 2019, 128 locations across the Hubei province in which Starbucks has reportedly temporarily suspended operations. CNBC reported other companies, like Disney and McDonalds, are considering suspending operations and instituting travel restrictions.
Right now, based on our map, Starbucks stands to be impacted the most - our interactive map allows users to zoom in further on individual neighborhoods. The Seattle coffee chain is going head-to-head with Chinese competitor Luckin, and Starbucks stock fell more than 3.5% Monday January 27, outpacing broader market losses.
Further, a Guggenheim analyst called Starbucks one of the stocks poised to lose the most, the longer the Coronavirus outbreak spreads - and noted that other consumer companies McDonalds and Domino's also stand to lose.
Other temporary business shutdowns in the region include: Marriott (1), Starwood (2), Hyatt (1) and Hilton (4) - but data will reveal, should the corporate shutdown expand, which other companies are impacted as Chinese officials continue to battle the virus' outbreak. For each, data is accurate as of 2019.
About the Data:
Thinknum tracks companies using the information they post online - jobs, social and web traffic, product sales, and app ratings - and creates data sets that measure factors like hiring, revenue, and foot traffic. Data sets may not be fully comprehensive (they only account for what is available on the web), but they can be used to gauge performance factors like staffing and sales.
