Starbucks announced it will close approximately 250 underperforming company-operated stores in North America as part of its "Back to Starbucks" strategy. This action is expected to result in approximately $300 million in restructuring charges and has caused the company to lower its guidance for net new store openings for fiscal year 2026.
Key Details
- Restructuring Costs: The company anticipates approximately $300 million in total pre-tax charges, consisting of ~$200 million in cash charges (lease exits, severance) and ~$100 million in non-cash charges (asset impairment).
- Store Closures: The closures represent about 1% of the company's North America portfolio, with the majority expected to be completed by the end of fiscal year 2026.
- Revised Guidance: Net new global store openings for fiscal year 2026 are now expected to be approximately 440, revised down from the prior guidance of 600 to 650 openings.