Starbucks Closes 250 Stores, Then Promises a Growth Spree

Starbucks closed roughly 250 North American stores last quarter — 212 of them in the U.S. — and then told investors it plans to start building again, with 90 to 100 net new North American locations planned for fiscal 2027.

The closures are part of the company's "Back to Starbucks" strategy, which CEO Brian Niccol announced on his second day on the job. The company has been shuttering underperforming stores to concentrate capital on more profitable locations. Niccol, who previously led a turnaround at Chipotle Mexican Grill, laid out the next phase on Thursday's earnings call for Q4 and full fiscal year 2026.

What did the quarter actually deliver?

Adjusted earnings came in at 80 cents per share, a 54% jump over the prior year, beating analyst expectations. Consolidated net revenues fell about 4% to $9.1 billion. Starbucks attributed the decline largely to the conversion of its China retail operations into a licensed joint venture — a structural change, not a demand collapse.

For the full fiscal year 2026, net revenue rose 2% to $37.9 billion.

Shares of Starbucks Corporation (Nasdaq: SBUX) slipped 2% in early Friday trading, in line with the broader market. Zoom out, though, and the stock is up more than 23% year-to-date. Investors have clearly warmed to Niccol's turnaround plans.

How big is the store base now?

Starbucks ended the quarter with 16,781 U.S. coffeehouses — roughly 40% of its global portfolio of 41,607 locations.

The shutdowns weren't a retreat, executives argued. They described them as a reset of the "development pipeline," with growth expected to accelerate from the fiscal 2027 base.

"As you look out into fiscal year '28, we want to get back into building new units north of 300 or so in the U.S.," Niccol said on the call. "We believe that is what gets us going towards that opportunity of 5,000 or more in North America."

That's the number worth watching: 5,000-plus additional North American stores as the long-term buildout target, with U.S. unit construction crossing 300 annually by fiscal 2028.

What does this change for the business?

Two years into the strategy, Niccol said it has entered a new phase — and he didn't mince words about the shift.

"Back to Starbucks started as a turnaround plan, and now Back to Starbucks is our growth plan," Niccol said. "Our plan is working. More customers are visiting us because the Starbucks experience is better. Our coffeehouses are coffeehouses again."

For operators, landlords and suppliers, the practical takeaway is timing. The shrinkage phase appears largely done: fiscal 2027 brings modest net adds, and the real construction wave starts in fiscal 2028. A company that spent the past two years pruning its footprint is now signaling it will spend the next two expanding it — with earnings growth of 54% per share and a 23% year-to-date stock rally giving management the credibility, and the cash, to fund it.