Starbucks Corp Announces Store Closures and $300M Restructuring

What Happened

• On September 22, 2026 (filed Sept. 24, 2026), Starbucks Corporation’s Board approved further actions under its "Back to Starbucks" strategy, including the closure of roughly 1% of its more than 18,000 North America coffeehouses (about 250 stores).
• The company expects most closures to be completed by the end of fiscal 2026 and to record approximately $300 million of restructuring charges: roughly $200 million cash (primarily lease exit costs and employee separation benefits) and $100 million non‑cash (disposal and impairment of company‑operated coffeehouse assets).
• Starbucks also revised its full‑year 2026 net new global company‑operated and licensed openings down to about 440 (previous guidance: 600–650), reflecting the ~250 North America closures partially offset by stronger international openings.

Key Details

• Board approval date: September 22, 2026; Form 8‑K filed September 24, 2026.
• Store impacts: ~1% of North America stores (~250 of >18,000) to close.
• Financial impact: ~$300 million total restructuring charges — ~$200 million cash; ~$100 million non‑cash.
• Timing: Majority of closures and a significant portion of associated charges expected in fiscal 2026.

Why It Matters

• Near‑term: Investors should expect one‑time charges in fiscal 2026 and some cash outflows tied to lease exits and employee separation, which will affect reported results and cash flow for the year.
• Guidance and growth cadence: The reduction in net new openings for FY26 signals a short‑term slowdown in global new store growth but the company states it is expanding openings internationally and continues to pursue longer‑term growth in North America.
• Operational focus: The moves are positioned as part of a strategy to improve the customer experience and overall portfolio quality—important context when assessing future revenue and margin trends.