Starbucks Plans About 250 North America Closures
The fiscal 2026 opening outlook reflects approximately 250 North America closures, partly offset by higher net new openings in International markets.
Rhea-AI Filing Summary
Starbucks Corporation approved further actions under its “Back to Starbucks” strategy, which focuses on revitalizing coffeehouses, enhancing the customer experience and strengthening its coffeehouse portfolio. The company will close approximately 1% of its more than 18,000 North America coffeehouses that do not deliver the brand’s expected experience and financial performance. It expects most closures to be completed by the end of fiscal year 2026.
Starbucks expects approximately $300 million in restructuring charges: approximately $200 million in cash charges, primarily for lease exit costs and employee separation benefits, and $100 million in non-cash charges from disposal and impairment of company-operated coffeehouse assets. A significant portion of the charges is expected in fiscal year 2026. Full-year fiscal 2026 net new global company-operated and licensed openings are expected to be approximately 440, compared with prior guidance of 600 to 650. The outlook reflects approximately 250 North America closures, partially offset by higher net new openings in International markets. Starbucks says it continues to see significant longer-term growth opportunity in North America and is developing a pipeline of new coffeehouses.
Positive
- None.
Negative
- FY2026 net new openings: approximately 440 versus prior guidance of 600 to 650.
- Approximately $300 million in restructuring charges is expected.
8-K Event Classification
2 items: 2.05, 7.01
2 items
Item 2.05
Costs Associated with Exit or Disposal Activities
Financial
The company committed to an exit plan involving layoffs, facility closures, or restructuring charges.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Key Figures
North America coffeehouses expected to close: approximately 1% of more than 18,000 coffeehouses
North America closures: approximately 250 coffeehouses
Restructuring charges: approximately $300 million
+3 more
6 metrics
North America coffeehouses expected to close
approximately 1% of more than 18,000 coffeehouses
Portfolio actions under the Back to Starbucks strategy
North America closures
approximately 250 coffeehouses
Basis for the fiscal 2026 net new opening outlook
Restructuring charges
approximately $300 million
Charges expected from the announced actions
Cash restructuring charges
approximately $200 million
Primarily lease exit costs and employee separation benefits
Non-cash restructuring charges
$100 million
Disposal and impairment of company-operated coffeehouse assets
Fiscal 2026 net new global company-operated and licensed openings
approximately 440
Prior guidance was 600 to 650
Key Terms
lease exit costs, employee separation benefits, non-cash charges, impairment
4 terms
lease exit costs financial
"cash charges primarily related to lease exit costs"
employee separation benefits financial
"lease exit costs and employee separation benefits"
non-cash charges financial
"The remaining $100 million will be non-cash charges"
Non-cash charges are accounting entries that reduce reported profit without any immediate cash leaving the company, such as depreciation (spreading the cost of equipment over time), amortization (spreading intangible costs), share-based pay, or write-downs when an asset loses value. They matter to investors because they can make earnings look weaker even though the business still generates cash; comparing profits with cash flow helps reveal the company’s true financial strength, like accounting for a car’s wear-and-tear without paying for repairs today.
impairment financial
"disposal and impairment of company-operated coffeehouse assets"
Impairment occurs when the value of an asset, such as property, equipment, or investments, drops below its recorded worth on the books. This situation signals that the asset may be less valuable than originally thought, similar to discovering that an item you own is worth less than what you paid for it. For investors, recognizing impairment is important because it can affect the overall financial health and future prospects of a business.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How many Starbucks locations are expected to close?
Starbucks plans to close approximately 1% of its more than 18,000 North America coffeehouses. The announcement is based on approximately 250 North America closures; the company expects the majority to be completed by the end of fiscal year 2026.
How many net new coffeehouses does SBUX expect to open in fiscal 2026?
Starbucks expects approximately 440 net new global company-operated and licensed coffeehouse openings in fiscal 2026, compared with prior guidance of 600 to 650. The outlook reflects approximately 250 North America closures, partially offset by higher net new openings in International markets.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 22, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
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(206 ) 447-1575
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.05 Costs Associated with Exit or Disposal Activities
On September 22, 2026, the Board of Directors of Starbucks Corporation (the “Company”) approved further actions under its previously announced “Back to Starbucks” strategy.
The “Back to Starbucks” strategy focuses on revitalizing coffeehouses, enhancing the customer experience, and strengthening the Company’s coffeehouse portfolio. As part of that strategy, the Company further assessed its existing North America store portfolio and will close approximately 1% of its more than 18,000 North America coffeehouses that do not deliver the coffeehouse experience and financial performance expected of the brand.
The Company expects the majority of the coffeehouse closures will be completed by the end of fiscal year 2026 with a significant portion of the associated cash and non-cash charges incurred in fiscal year 2026. Of the approximately $300 million of restructuring charges to be incurred, the Company anticipates that approximately $200 million will be cash charges primarily related to lease exit costs and employee separation benefits. The remaining $100 million will be non-cash charges due to disposal and impairment of company-operated coffeehouse assets.
Item 7.01 Regulation FD Disclosure.
The Company expects that full fiscal year 2026 net new global company-operated and licensed coffeehouse openings will be approximately 440, compared with its prior guidance of 600 to 650 net new openings. This is based on approximately 250 closures in North America as part of today’s announcement, partially offset by higher net new coffeehouse openings across the Company’s International markets. The Company continues to see significant longer-term growth opportunity ahead in North America and is actively developing a strong pipeline of new coffeehouses. The information contained in this Item 7.01 shall not be deemed "filed" for purposes of Section 18 of the Exchange Act.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| STARBUCKS CORPORATION | ||||||||||||||
| Dated: | September 24, 2026 | |||||||||||||
| By: | /s/ Joshua C. Gaul | |||||||||||||
| Joshua C. Gaul | ||||||||||||||
| vice president, assistant general counsel and corporate secretary | ||||||||||||||