Starbucks store closures update: Coffee giant reveals an optimistic plot twist after recent mass shutterings

On Thursday, Starbucks Coffee Company disclosed its store closures and future growth plans, reporting Q4 and full fiscal year 2026 earnings. The Seattle-based company saw an 80-cent per share adjusted earnings increase of 54% compared to the previous year, surpassing analysts' expectations. Consolidated net revenues decreased by 4% to $9.1 billion, primarily due to the conversion of China retail operations to a licensed joint venture.

For the full fiscal year 2026, Starbucks reported $37.9 billion in net revenue, a 2% increase. Starbucks shares fell 2% in early trading on Friday, mirroring the overall market decline; however, the stock has risen over 23% year-to-date as investors embrace CEO Brian Niccol's turnaround plans.

Starbucks closed approximately 250 North American stores in Q4, with 212 in the United States, as part of its Back to Starbucks strategy. The company aims to focus on more profitable locations and eliminate underperforming stores. Niccol, who previously led a turnaround at Chipotle Mexican Grill, introduced the Back to Starbucks plan on his second day in office. As of the end of Q4, Starbucks had 16,781 U.S. coffeehouses, accounting for around 40% of its global portfolio of 41,607 locations.

Executives revealed that Starbucks anticipates adding 90 to 100 net new North American stores in fiscal 2027, as they reset their development pipeline. Niccol indicated that the company aims to grow to over 300 U.S. units and ultimately build more than 5,000 locations in North America. Niccol stated that the Back to Starbucks strategy has evolved from a turnaround plan to a growth plan, with more customers visiting Starbucks as the experience improves and the company's coffeehouses regain their appeal.