01—Abstract
Summary
Summary of the 8-K filed September 24, 2026. Cited figures are marked; the original filing is the authoritative source.
Starbucks Corporation (SBUX) announced significant strategic adjustments to its North America store portfolio as part of its ongoing "Back to Starbucks" revitalization strategy.
The company's Board of Directors has approved the closure of approximately 1%a of its North American coffeehouses, which equates to roughly 180 to 185 locations, that are underperforming. This move aims to improve the overall coffeehouse experience and financial performance across the brand. The closures are expected to be substantially completed by the end of fiscal year 2026, with a significant portion of the associated restructuring charges recognized in the same fiscal year.
The company anticipates total restructuring charges of approximately $300 millionb, comprising $200 million in cash charges (primarily for lease exits and employee separation) and $100 million in non-cash charges (for asset impairment). Furthermore, Starbucks has revised its full-year 2026 net new global coffeehouse openings guidance downwards to approximately 440 from its previous range of 600-650, largely due to these North American closures, though this is partially offset by stronger international growth.
02—Key points
Key Highlights
- Starbucks to close approximately 1% of its over 18,000 North America stores, representing about 180-185 locations, to enhance brand experience and financial performance.
- The "Back to Starbucks" strategy includes these targeted closures to optimize the company-operated and licensed coffeehouse portfolio.
- The majority of these closures are slated to be completed by the end of fiscal year 2026.
- The company expects to incur approximately $300 million in restructuring charges, with $200 million in cash (lease costs, employee separation) and $100 million in non-cash (asset impairment).
- Full-year fiscal 2026 net new global coffeehouse openings guidance reduced to ~440 (from 600-650), reflecting the impact of North American closures offset by international growth.
- Despite closures, Starbucks maintains a positive outlook on long-term North America growth and is actively developing new store opportunities.
03—Questions
Frequently Asked Questions
Why is Starbucks closing North American stores?
Starbucks is closing approximately 1% of its underperforming North American stores as part of its "Back to Starbucks" strategy. The goal is to revitalize coffeehouses, enhance the customer experience, and strengthen the overall coffeehouse portfolio by focusing on locations that meet expected brand performance standards.
What is the financial impact of these closures?
Starbucks anticipates incurring approximately $300 million in total restructuring charges. Of this, about $200 million will be cash charges related to lease exit costs and employee separation benefits, while the remaining $100 million will be non-cash charges due to the disposal and impairment of assets.
How will these closures affect Starbucks' store growth guidance?
The planned closures in North America will lead to a reduction in the company's net new global coffeehouse openings guidance for fiscal year 2026. The new guidance is approximately 440 net new openings, down from the previously expected 600 to 650. This revision is primarily driven by the approximately 250 closures in North America, though it is partially offset by stronger growth in international markets.
When will these store closures be completed?
The company expects the majority of these coffeehouse closures to be completed by the end of fiscal year 2026, with a significant portion of the associated charges also incurred within the same fiscal year.
04—Continue