Starbucks (NASDAQ: SBUX) plans $400M restructuring under cost program
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Starbucks Corporation announced a restructuring plan tied to its “Back to Starbucks” strategy, aiming to streamline support functions and simplify operations at Starbucks Reserve and Roastery locations. This is part of broader efforts to enhance customer experience and pursue $2 billion in cost savings initiatives.
The company expects to record approximately $400 million in restructuring charges, with about $280 million as non-cash impairments of long-lived and right-of-use lease assets, and about $120 million as cash charges mainly for employee separation benefits. Most actions are expected to be completed by the end of the current fiscal year, with a significant portion of charges incurred in fiscal 2026.
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Insights
Starbucks plans $400M restructuring charges to support a $2B cost-savings push.
Starbucks is advancing its “Back to Starbucks” strategy with a restructuring focused on support functions and its Starbucks Reserve and Roastery operations. The company targets $2 billion in cost savings and notes its international business is now nearly 90% licensed locations.
The plan includes about $400 million in restructuring charges, of which roughly $280 million are non-cash impairments of long-lived and right-of-use lease assets, and about $120 million are cash charges for employee separation benefits. A majority of actions are expected to be completed by the end of the current fiscal year.
Most charges will be recognized in fiscal 2026. Actual financial impact will depend on how effectively Starbucks executes these changes and realizes the intended cost savings over time, particularly in its support organization and specialized store formats.
8-K Event Classification
Item 2.05 — Costs Associated with Exit or Disposal Activities
1 item
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.
Key Figures
Target cost savings: $2 billion
Total restructuring charges: $400 million
Non-cash restructuring charges: $280 million
+4 more
7 metrics
Target cost savings
$2 billion
Cost savings initiatives under “Back to Starbucks” strategy
Total restructuring charges
$400 million
Estimated charges associated with restructuring plan
Non-cash restructuring charges
$280 million
Impairment of long-lived and right-of-use lease assets
Cash restructuring charges
$120 million
Primarily employee separation benefits
Licensed international locations
Nearly 90%
Portion of international coffeehouses operating under license model
Completion timing
By end of current fiscal year
Majority of restructuring actions expected to be completed
Charge recognition period
Fiscal year 2026
Significant portion of related cash and non-cash charges
Key Terms
restructuring charges, impairment of long-lived assets, right-of-use lease assets, employee separation benefits, +2 more
6 terms
restructuring charges financial
"Of the approximately $400 million of restructuring charges to be incurred"
Restructuring charges are costs that a company pays when it changes how it operates, like closing factories or laying off employees. These expenses are often one-time and happen to help the company become more efficient in the long run. They matter because they can affect the company's profits and how investors see its future prospects.
impairment of long-lived assets financial
"approximately $280 million will be non-cash charges due to impairment of long-lived assets"
An impairment of long-lived assets occurs when a company concludes that a physical or intangible asset—like a building, equipment, or a patent—is worth less than its recorded value on the books, so the company writes down that asset to its recoverable amount. For investors this matters because such write-downs reduce reported profits and company net worth, signaling potential problems with future cash flow or that management overpaid for assets; think of it like recognizing that a car you bought has lost more value than you expected.
right-of-use lease assets financial
"including right-of-use lease assets, primarily related to reassessment of the asset group"
employee separation benefits financial
"cash charges primarily related to employee separation benefits due to further optimization"
Emerging Growth Company regulatory
"Emerging Growth Company o Item 2.05 Costs Associated with Exit or Disposal Activities"
An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.
Costs Associated with Exit or Disposal Activities regulatory
"Item 2.05 Costs Associated with Exit or Disposal Activities On May 13, 2026"
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What restructuring charges did Starbucks (SBUX) announce in this 8-K?
Starbucks announced about $400 million in restructuring charges. Roughly $280 million are non-cash impairments of long-lived and right-of-use lease assets, and about $120 million are cash charges, mainly for employee separation benefits tied to optimizing its global support organization.
How does Starbucks’ restructuring relate to its $2 billion cost savings goal?
The restructuring supports Starbucks’ broader plan to pursue $2 billion in cost savings. By streamlining domestic and international support organizations and simplifying Starbucks Reserve and Roastery operations, the company aims to reduce costs while enhancing customer experience across its core coffeehouse business.
When will Starbucks complete the restructuring actions and record most charges?
Starbucks expects a majority of restructuring actions to be completed by the end of the current fiscal year. A significant portion of the related cash and non-cash charges, totaling about $400 million, is anticipated to be incurred during fiscal year 2026 according to the disclosure.
What part of Starbucks’ business is affected by the new restructuring plan?
The plan targets Starbucks’ domestic and international support organization and non-retail facilities, plus future operational complexity at Starbucks Reserve and Roastery locations. The company is also optimizing its non-retail support facility portfolio to align with its “Back to Starbucks” strategic priorities.
What portion of Starbucks’ international stores are licensed under this strategy?
Starbucks states its international business has moved toward a model where nearly 90% of its coffeehouses are licensed. This supports the “Back to Starbucks” strategy, emphasizing a more asset-light international structure alongside cost savings and operational streamlining initiatives worldwide.
How much of Starbucks’ restructuring charges are non-cash versus cash?
Of the approximately $400 million in restructuring charges, Starbucks expects about $280 million to be non-cash impairments of long-lived and right-of-use lease assets. The remaining roughly $120 million will be cash charges, primarily for employee separation benefits in its global support organization.
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): May 13, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code)
(206 ) 447-1575
(Registrant's telephone number, including area code)
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:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title | Trading Symbol | Name of each exchange on which registered | ||||||
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 May 13, 2026, the Board of Directors of Starbucks Corporation (the “Company”) approved further actions under its previously announced “Back to Starbucks” strategy that focuses on revitalizing coffeehouses and enhancing the customer experience, which the Company believes will drive long-term growth and value for partners and shareholders.
As part of its strategy, the Company has previously communicated that it is pursuing $2 billion in cost savings initiatives and that its international business has moved towards a model where nearly 90% of its coffeehouses are licensed.
Under the approved restructuring plan, the Company plans to capture cost savings by further streamlining its domestic and international support organization and non-retail facilities. In addition, the Company is reducing the future operational complexity of its Starbucks Reserve and Roastery locations, taking learnings from its core coffeehouse operations.
The Company expects that a majority of the plan actions will be completed by the end of this fiscal year with a significant portion of the associated cash and non-cash charges incurred in fiscal year 2026. Of the approximately $400 million of restructuring charges to be incurred, the Company anticipates that approximately $280 million will be non-cash charges due to impairment of long-lived assets, including right-of-use lease assets, primarily related to reassessment of the asset group associated with its ongoing Starbucks Reserve and Roastery locations and optimizing its non-retail support facility portfolio. The remaining $120 million of restructuring charges will be cash charges primarily related to employee separation benefits due to further optimization of our global support organization.
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: | May 15, 2026 | |||||||||||||
| By: | /s/ Joshua C. Gaul | |||||||||||||
| Joshua C. Gaul | ||||||||||||||
| vice president, assistant general counsel and corporate secretary | ||||||||||||||