Starbucks to close 150 locations in 2019
Starbucks says that there will be more Starbucks stores closing in 2019.
According to the company, it is planning for 150 Starbucks stores closing next year. The company says that this is part of its effort to better optimize its store growth in the U.S., which is where the closings will occur.
150 Starbucks stores closing in 2019 is an increase from previous years. Typically, the coffee company only closes about 50 stores per year in the U.S. The stores closing will be “underperforming company-operated stores” in the chain’s “most densely penetrated markets.”
While certain demand headwinds are transitory, and some of our cost increases are appropriate investments for the future, our recent performance does not reflect the potential of our exceptional brand and is not acceptable,” said Kevin Johnson, Starbucks president and CEO. “We must move faster to address the more rapidly changing preferences and needs of our customers.
“Over the past year, we have taken several actions to streamline the company, positioning us to increase our innovation agility as an organization and enhance focus on our core value drivers which serve as the foundation to re-accelerate growth and create long-term shareholder value,” Johnson said.
To go along with its decision to close 150 stores next year, Starbucks is also preparing to change where it opens new locations. It says that it will now be shifting its focus on store growth to “underpenetrated markets.” It is also looking to slow licensed store growth during the year.
The Starbucks stores closing plan was announced by the company in a strategic update. This update also includes a push to return more money to investors. As part of the update, the company is increasing its dividend by 20 percent. The company will also be paying a dividend of 36 cents per share to holders of SBUX stock. This dividend is payable on Aug. 24, 2018, to shareholders on record as of Aug. 9, 2018.
The update from Starbucks also includes changes to its outlook. This includes it now expects comparable store sales growth of 1 percent in the third quarter of 2018.