Starbucks to close stores in restructuring plan; expects to incur $1B in related costs

Restructuring Plan - Starbucks' board approved a restructuring plan involving coffee house closures and support organization transformation [2] - The restructuring is part of the "Back to Starbucks" strategy under CEO Brian Nickel [2] - The company anticipates the majority of store closures will be completed by the end of the fiscal year [2] - Starbucks expects to incur approximately $1 billion USD related to store closures, support organization transformation, and other restructuring activities [2] - Approximately 90% of these expenses will be attributable to the North America business [3] - Overall company-operated stores in North America will decline by about 1% in fiscal year 2025, accounting for both openings and closures [3] - A significant portion of these charges will be incurred in fiscal year 2025 [3] Strategic Focus - The "Back to Starbucks" strategy focuses on revitalizing coffee houses and enhancing the customer experience [4] - Starbucks assessed its existing store portfolio based on the viability of offering a physical environment consistent with the brand and a clear path to financial performance, closing those that do not meet the criteria [4] - The company is working to build a stronger and more resilient Starbucks, prioritizing investment closer to the coffee house and the customer [5] - Starbucks is restructuring its support organization [5] - Starbucks is moving away from mobile-only stores to provide a different consumer experience [7] Workforce Adjustments - Starbucks is laying off 900 more corporate workers [6] - Starbucks laid off approximately 2,000 corporate headquarters employees earlier in the year [6] Cafe Improvements - Starbucks is projecting approximately 1,000 cafe revamps in the coming year [7]