Starbucks closes 180 North American stores and cuts fiscal 2026 store opening outlook
The coffee chain plans to incur $300 million in restructuring charges as part of its Back to Starbucks strategy.
Starbucks Corporation (SBUX) said Wednesday that its board of directors approved further actions under its Back to Starbucks strategy, including closing approximately 1% of its North American coffeehouses.
Key takeaways
- Starbucks will close roughly 1% of its more than 18,000 North American coffeehouses.
- Total restructuring charges are expected to reach $300 million.
- Cash charges will total approximately $200 million for leases and severance.
- Non-cash charges will reach $100 million for asset impairments and disposals.
- Full fiscal year 2026 net new global openings are now projected at approximately 440.
Restructuring charges and store closures
The coffeehouse chain said the closures target locations that fail to deliver expected financial performance and customer experiences. The company expects the majority of these store closures to be completed by the end of fiscal year 2026, with a significant portion of the associated expenses hitting during the same period. Of the $300 million in expected restructuring charges, approximately $200 million will be cash expenditures tied to lease exit costs and employee separation benefits. The remaining $100 million will consist of non-cash charges stemming from the disposal and impairment of company-operated coffeehouse assets.
Guidance update on store openings
In a separate disclosure, Starbucks updated its outlook for fiscal year 2026 net new global company-operated and licensed coffeehouse openings to approximately 440. The new figure compares with previous guidance of 600 to 650 net new openings. The adjustment accounts for approximately 250 closures in North America, offset partially by higher net new openings in international markets. The company said it continues to see long-term growth opportunities in North America and is actively developing a pipeline of new store locations.
Why it matters
The store closures and lowered net opening targets reflect management's efforts to recalibrate the footprint under the Back to Starbucks initiative. While the closures impact about 180 locations based on the total of more than 18,000 North American coffeehouses, the company did not detail the exact timing of individual lease terminations or provide a breakdown of international versus domestic performance metrics beyond the aggregate opening figures.
By the numbers
| Metric | Value | Source | |---|---|---|> | North American store portfolio | More than 18,000 | 8-K filing | | Planned North American closures | Approximately 1% | 8-K filing | | Total restructuring charges | $300 million | 8-K filing | | Anticipated cash charges | $200 million | 8-K filing | | Anticipated non-cash charges | $100 million | 8-K filing | | Fiscal 2026 net new openings outlook | Approximately 440 | 8-K filing | | Prior fiscal 2026 net new openings guidance | 600 to 650 | 8-K filing | | North American closures factored into outlook | Approximately 250 | 8-K filing |
Next steps for the portfolio
Starbucks expects the majority of the planned store closures to finish by the conclusion of fiscal year 2026. The company continues to evaluate its broader international and domestic real estate portfolio while pursuing its pipeline of future coffeehouse locations.