Starbucks to Close Select North America Coffeehouses, Cuts Store Outlook
Starbucks Corp (NASDAQ: SBUX ) shares are up slightly Friday morning. The company is in focus after announcing plans to close underperforming coffeehouses in North America. The move follows a recent report that Starbucks is considering selling a majority stake in its Japan business in a potential transaction that could value its largest overseas company-operated market at approximately $3 billion, as per CNBC. • Starbucks shares are consolidating. What should traders watch with SBUX? Plans to Close Coffeehouses On Monday, Starbucks’ board of directors approved additional actions under its "Back to Starbucks" strategy, aimed at revitalizing coffeehouses, improving the customer experience and strengthening its store portfolio. Following a review of its North America stores, Starbucks plans to close about 1% of its more than 18,000 coffeehouses that do not meet the brand’s expected customer experience and financial performance standards. Most closures are expected by the end of fiscal 2026. The company expects approximately $300 million in restructuring charges, including $200 million in cash costs primarily for lease exits and employee separation benefits and $100 million in non-cash
Starbucks Corp (NASDAQ: SBUX ) shares are up slightly Friday morning. The company is in focus after announcing plans to close underperforming coffeehouses in North America. The move follows a recent report that Starbucks is considering selling a majority stake in its Japan business in a potential transaction that could value its largest overseas company-operated market at approximately $3 billion, as per CNBC. • Starbucks shares are consolidating.
What should traders watch with SBUX? Plans to Close Coffeehouses On Monday, Starbucks’ board of directors approved additional actions under its "Back to Starbucks" strategy, aimed at revitalizing coffeehouses, improving the customer experience and strengthening its store portfolio. Following a review of its North America stores, Starbucks plans to close about 1% of its more than 18,000 coffeehouses that do not meet the brand’s expected customer experience and financial performance standards. Most closures are expected by the end of fiscal 2026.
The company expects approximately $300 million in restructuring charges, including $200 million in cash costs primarily for lease exits and employee separation benefits and $100 million in non-cash charges related to disposal and impairment of company-operated coffeehouse assets. Starbucks now expects approximately 440 net new global company-operated and licensed coffeehouse openings in fiscal 2026, down from its previous guidance of 600 to 650. The revised outlook reflects about 250 North America closures, partly offset by higher net new openings in international markets.
See More: Top Momentum Stocks Starbucks Earnings Preview and Analyst Price Targets to Watch Looking further out, the next major catalyst for the stock arrives with the Oct. 28, 2026 (estimated) earnings report. 31 (high: $125; low: $92) across 33 analysts. Recent analyst moves include: Seaport Global: Initiated with Neutral on Sept.
55% Weight Significance: Because Starbucks carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock. 05 at publication on Friday, according to Pro data. Read Also: Trump's Surgeon General Pick Has Tobacco, Cola Stocks In Portfolio Even as Robert Kennedy Jr. Wages War On Sugary Drinks, Processed Food Photo via Shutterstock