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Starbucks Announces Major Restructuring Plan

Story Highlights
  • Starbucks plans to close certain coffeehouses and transform its support organization under its ‘Back to Starbucks’ strategy.
  • The restructuring involves $1 billion in costs and aims to enhance customer experience and financial performance in North America.
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Starbucks Announces Major Restructuring Plan

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An announcement from Starbucks ( (SBUX) ) is now available.

On September 23, 2025, Starbucks announced a restructuring plan under its ‘Back to Starbucks’ strategy, which involves closing certain coffeehouses and transforming its support organization. This initiative aims to revitalize the brand by enhancing the customer experience and ensuring financial performance. The company plans to close stores that do not meet brand and financial criteria, impacting its North American operations significantly. Starbucks estimates restructuring costs of approximately $1 billion, with a majority of expenses related to North America, including employee separation benefits and lease costs. The company expects to complete most closures by the end of the fiscal year, with a slight decline in its North American store count. The restructuring is intended to build a stronger, more resilient Starbucks, with plans to uplift over 1,000 locations and reduce non-retail partner roles to focus on customer service and growth.

The most recent analyst rating on (SBUX) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Starbucks stock, see the SBUX Stock Forecast page.

Spark’s Take on SBUX Stock

According to Spark, TipRanks’ AI Analyst, SBUX is a Neutral.

Starbucks’ overall stock score is primarily influenced by its strong revenue growth but is tempered by financial challenges such as declining margins and high leverage. Technical indicators suggest a bearish trend, and the high P/E ratio points to potential overvaluation. While strategic initiatives and international growth show promise, current financial pressures and U.S. market challenges weigh on the score.

To see Spark’s full report on SBUX stock, click here.

More about Starbucks

Starbucks Corporation is a leading global coffeehouse chain known for its specialty coffee and beverages. The company focuses on providing a high-quality customer experience and operates a significant number of coffeehouses across North America and internationally.

Average Trading Volume: 9,611,502

Technical Sentiment Signal: Sell

Current Market Cap: $95.79B

Learn more about SBUX stock on TipRanks’ Stock Analysis page.

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