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Starbucks to close 250 stores this week
finance.yahoo.com • • business
Key Points:
- Starbucks plans to close 250 unprofitable stores in the US and Canada this week, reducing its North American store count by about 1%, as part of its ongoing turnaround strategy under CEO Brian Niccol.
- The company is simultaneously remodeling other locations to create a cozier atmosphere, aiming to complete at least 1,500 store redesigns by the end of fiscal 2026 and accelerate further in fiscal 2027.
- Starbucks reported strong third-quarter results with same-store sales growth of 7.9%, surpassing Wall Street expectations and indicating progress in its turnaround efforts.
- The company also announced plans to open a technology hub in India next year to support its growth and innovation initiatives.
- Despite these positive developments, Starbucks stock has gained 10% over the past year, trailing the S&P 500's 15% rise, though analysts view the store closures as potentially beneficial for sales growth.
