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Starbucks to Shutter 250 North American Stores
24 Sep
Summary
- 250 Starbucks stores to close in North America by 2026.
- Closures represent about 1% of Starbucks' North American locations.
- Restructuring expenses are estimated at $300 million for Starbucks.
Starbucks will close 250 underperforming coffeehouses in North America, with most expected to shut by the end of fiscal 2026. This decision affects roughly 1% of the company's 18,000 North American locations.
These closures are a strategic move to revive sales and improve financial performance, with estimated restructuring expenses of approximately $300 million. The company's leadership believes these actions are necessary for delivering the desired customer and partner experience and achieving acceptable financial results.
Despite these closures, Starbucks has raised its outlook for fiscal 2026, anticipating adjusted earnings per share between $2.55 and $2.65. Global and US same-store sales are projected to grow by nearly 6% and over 6%, respectively.
CEO Brian Niccol attributes the company's rebound among consumers to a combination of cafe renovations, menu enhancements, and effective marketing strategies. He stated that customers feel better about the coffeehouses and the Starbucks brand overall.
