Starbucks plans to close 150 locations

The company closed over 8,000 stores in the United States for the afternoon to conduct racial-bias training for its employees following an incident invo

The company closed over 8,000 stores in the United States for the afternoon to conduct racial-bias training for its employees following an incident invo

That period has seen big strategic moves in China, a globe-spanning partnership with Nestle, a high-profile racially charged incident and unprecedented corporate response, and executive chairman Howard Schultz's quasi-retirement, effective next week.

Starbucks shares slipped almost 2 percent in after-hours trading. According to Bloomberg News, the comparable sales performance would be Starbucks' weakest in nine years.

So Starbucks said on Tuesday that it would close USA 150 stores, about triple the number it usually shutters annually.

Chief financial officer Scott Maw said the company is piling another $5 billion onto its already planned $20 billion budget for stock buybacks and dividends through 2020.

It has missed analysts' estimates for same-store sales in the US -dominated Americas region in five of the last six quarters. The training also delayed the launch of Starbucks' spring and summer marketing campaign by about two weeks. Starbucks said it would provide additional details on its plans at an investor presentation on Tuesday afternoon.


Starbucks aims to rein in spending, which grew faster than total sales in its fiscal second quarter.

The iconic coffee chain, which typically shuts down about 50 stores per year, said in a statement that the closures will occur mostly in "densely penetrated markets". U.S.net store growth peaked at 6 percent in Starbucks' 2017 fiscal year.

"It is not an excuse", for the 1 percent growth rate, Johnson added.

In March, Rosalind Brewer, Starbucks' COO, also said the market for vegan food was significant and that the company was working on launching more plant-based food and drinks. Starbucks closed its US stores on May 29 to conduct racial-bias training for its employees.

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