Starbucks closes 250 North American stores as growth strategy shifts

Starbucks closed approximately 250 stores in North America during the fourth quarter as part of an effort to shed underperforming locations and focus on core profitability. The coffee chain reported a 4% decline in consolidated net revenue to $9.1 billion for the quarter, a result primarily attributed to the conversion of its Chinese retail operations into a licensed joint venture model.

Moving forward, the company intends to pivot from its recent consolidation toward a renewed growth phase. Executives announced plans to open between 90 and 100 net new stores in North America during fiscal year 2027, with a target of increasing that pace to over 300 new locations annually by 2028.

CEO Brian Niccol stated that the company’s internal recovery efforts, dubbed the "Back to Starbucks" plan, have transitioned from a turnaround strategy into a growth roadmap. While the company's shares fell 2% following the latest earnings release, the stock has gained more than 23% year-to-date as investors evaluate the new management's long-term plan.