Starbucks Plans Closures, Revises Guidance

Published: September 24, 2026

STARBUCKS CORP

Direct News

Starbucks (SBUX) will close approximately 1% of company-operated stores in North America.
Company lowered its FY26 new openings forecast as part of ongoing portfolio optimization.
Actions are part of the 'Back to Starbucks' restructuring program, which carries an estimated ~$1 billion cost and a $397.8 million restructuring reserve as of Sept. 28, 2025.

Historical Context

The store-closure action is an extension of the "Back to Starbucks" strategy announced Sept. 23, 2025, which the board approved to close underperforming company-operated coffeehouses and transform the support organization. That plan carried an estimated $1 billion in restructuring costs with most charges attributed to North America and a sizable portion expected to be incurred in FY2025. Prior FY2025 filings documented impairment and lease exit costs through June 29, 2025, and disclosed a $397.8 million restructuring reserve as of Sept. 28, 2025. Recent leadership changes and governance moves referenced in FY2025 disclosures—such as the appointment of Cathy R. Smith as CFO (effective March 4, 2025), reinstatement of the COO role with Mike Grams (effective June 4, 2025), and board expansion on June 25, 2025—provide the backdrop for current execution of the restructuring plan. Investors should view the current closures and guidance revision through this sequence of strategic actions and prior financial disclosures.

What investors need to know

Starbucks' announcement that it will close about 1% of North America company-operated stores and reduce FY26 new openings targets signals a continued focus on optimizing store-level economics. Investors should treat this as a tactical move within the company's broader "Back to Starbucks" plan, which targets store portfolio optimization, improved customer experience, and reduced support organization overhead. The restructuring program has a disclosed estimated total cost of roughly $1 billion, with the company reporting a $397.8 million restructuring reserve at the FY2025 year end (Sept. 28, 2025). Management has previously disclosed that approximately 90% of restructuring expenses are attributable to the North America business, underscoring that these closures are concentrated in the company's core market.

Financial impact and restructuring detail

Material components of the restructuring cost were previously disclosed and provide context for the current action: employee separation costs were estimated at about $150 million; disposal and impairment of store assets were $352.8 million for the nine months ended June 29, 2025; and amortization of ROU lease assets and lease exit costs were $239.3 million for the same period. These prior charges illustrate the mix of cash and non-cash impacts that can accompany store closures. Because the company also lowered its FY26 new openings forecast, capital allocation in the near term may shift from expansion toward executing store exits and improving existing unit economics. Management incentives are tied to execution of the "Back to Starbucks" plan via performance-based equity awards (PRSUs) granted June 29, 2025, indicating alignment between leadership pay and restructuring outcomes.

Risks and strategic implications

Key risks that remain relevant to investors include labor and unionization pressures, execution risk on the restructuring plan, commodity cost volatility (coffee, dairy), and competitive pressure from other QSR players. The company’s moat assessment in prior disclosures characterizes Starbucks as having an execution advantage rather than a durable structural moat, leaving it vulnerable to intensified competition. Successful execution matters: the announced closures and revised openings forecast aim to strengthen unit economics and customer experience, but missteps could affect traffic, partner (employee) morale, and margins. Investors should monitor management updates on closure pacing, cash restructuring charges, and any changes to capital return policies or guidance tied to FY26 results.

Investor FAQ

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EOG

Sep 24, 2026

Direct News

Historical Context

What investors need to know

Financial impact and restructuring detail

Risks and strategic implications

Investor FAQ

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