Starbucks said Thursday it would shutter underperforming stores in North America and cut 900 jobs in a $1 billion restructuring effort, as CEO Brian Niccol presses ahead with his plan to revive the company’s fortunes.In his first year on the job, Niccol has zeroed in on investing in Starbucks’ stores to reduce service times and restore a coffee-house environment, while also trimming management layers.The company has posted six straight quarters of sales decline in the US as demand for its pricey lattes took ...

Is your local Starbucks in jeopardy. Maybe. The coffee giant says it will close about 1% of its North American stores.Starbucks said it expects to finish September with 18,300 locations in North America. It has more than 40,000 locations globally. At the same time, more than a thousand stores will be remodeled with cozier chairs, extra outlets, and warmer colors.The changes are part of a billion dollar back to Starbucks transformation plan under CEO Brian Nickel. That includes 900 new layoffs on top of the ...

By Juveria Tabassum and Waylon Cunningham (Reuters) -Starbucks said on Thursday it would close underperforming stores in North America, including its iconic Seattle roastery, as CEO Brian Niccol presses ahead with his restructuring effort, which is expected to cost $1 billion in a bid to revive the company's flagging sales. The coffee chain's overall U.S. and Canada store count is expected to drop by 1%, or several hundred stores, by the end of the 2025 fiscal year. Niccol is trying to restore the chain' ...

Core Viewpoint - Starbucks Corporation is expected to report third-quarter financial results that may indicate either a turnaround or increased competition impacting market share [1] Earnings Estimates - Analysts predict third-quarter revenue of $9.29 billion, an increase from $9.11 billion in the same quarter last year [2] - The company has missed revenue estimates in seven of the past ten quarters [2] Earnings Per Share - Expected earnings per share for the third quarter is 65 cents, down from 93 cents in the previous year [3] - Starbucks has missed earnings per share estimates in five of the past ten quarters [3] Analyst Insights - The introduction of the Green Apron staffing model may increase labor costs by 12% at U.S. stores, potentially impacting earnings in 2026 and 2027 [4] - Despite the increased labor costs, analysts have raised same-store sales estimates for 2026 through 2028 [4] Visitor Trends - A report from Placer.ai indicates a consistent number of unique visitors, although overall visits have declined recently [5] - Monthly visits in January increased by 3.1% and in April by 0.9% year-over-year, while some months saw declines [6] Competitive Landscape - Starbucks is focusing on loyal visits and moving away from short-term discounts, which may take time to show results [7] - Competition includes drive-thru coffee chains, coffee houses, and consumers brewing coffee at home [7] Investor Expectations - Investors are keen to hear about Starbucks' loyal consumer base and any insights on competitive trends during the earnings report [8] Analyst Ratings - Bank of America maintained a Buy rating and raised the price target from $101 to $110 [9] - Barclays maintained an Overweight rating but lowered the price target from $108 to $106 [9] - Jefferies downgraded from Hold to Underperform with a price target of $76 [9] - Citigroup maintained a Neutral rating and raised the price target from $95 to $100 [9] - Stifel maintained a Buy rating and raised the price target from $92 to $105 [9] Recent Performance - The second quarter saw comparable store sales down 1% in North America, down 2% internationally, and flat in China [10] - The company has been quiet on guidance since the new CEO took over, which may lead to volatility in shares post-earnings report [11]

Core Viewpoint - Luckin Coffee, China's largest coffee chain, has opened its first locations in the United States, specifically in New York City, after successfully competing against Starbucks in Asia [1][5]. Group 1: Store Launch and Promotions - Luckin Coffee opened its first US locations on Monday, including two in New York City [1][5]. - The company is promoting its new storefronts with special deals, such as offering free tote bags to the first 100 customers and 99-cent drinks for a limited time [2][11]. Group 2: Product Offerings and Pricing Strategy - Luckin Coffee offers a diverse menu that includes coffee, matcha, lattes, and fruity drinks, along with pastries like banana yogurt loaf and sausage, egg, and cheese croissant [3]. - The chain's pricing strategy is competitive, with drinks in China priced approximately 30% lower than those at Starbucks [3]. Group 3: Company Background and Growth - Founded in Xiamen, China in 2017, Luckin Coffee rapidly expanded to surpass Starbucks in the number of storefronts by 2019, currently operating around 22,000 locations in China and additional stores in Singapore [4]. - Despite facing a significant scandal in 2020 involving accounting fraud, which led to a $180 million fine and a $175 million settlement, the company has continued to grow, doubling its number of stores and increasing revenue by 87% in 2023, outperforming Starbucks in China [7][9]. Group 4: Competitive Landscape - Recent reports indicated that Starbucks was exploring a partial sale of its Chinese business, although the company has since denied these claims [10].