An article summarized by Yahoo Finance:
Starbucks plans to close 250 stores across the U.S. and Canada this week, cutting its North American store count by roughly 1%. COO Mike Grams said the company identified locations that were either unable to deliver the desired customer and employee experience or lacked a path to acceptable financial performance. The move comes nearly a year after Starbucks closed a similar 1% of its locations.
At the same time, Starbucks is investing in stores it plans to keep. The company is accelerating renovations designed to make cafés feel more comfortable and inviting, including bringing back chairs and a cozier atmosphere. Starbucks expects to complete at least 1,500 store “uplifts” by the end of fiscal 2026, while also planning to open a new technology hub in India next year.
The closures come as CEO Brian Niccol’s turnaround strategy shows signs of progress. Starbucks reported 7.9% same-store sales growth in Q3, beating Wall Street’s 5.7% expectation and improving from 6.2% growth in Q2. Starbucks shares are up about 10% over the past year, although they have trailed the S&P 500’s roughly 15% gain.
