STARBUCKS CORP [SBUX] - restructuring charges
Starbucks Corp anticipates approximately $200 million in cash charges related to lease exit costs and employee separation benefits, alongside $100 million in non-cash charges for asset impairment.
Why this matters
Starbucks Corp, a leading global coffeehouse chain based in Washington, is undertaking a strategic restructuring as part of its "Back to Starbucks" initiative, which aims to revitalize its coffeehouses and enhance customer experience. The company plans to close approximately 1% of its over 18,000 North American locations that do not meet brand expectations in terms of experience and financial performance. This restructuring will result in about $300 million in charges, with $200 million in cash charges related to lease exits and employee separation benefits, and $100 million in non-cash charges for asset impairment. The majority of these closures and associated charges are expected to be completed by the end of fiscal year 2026.