Starbucks will close 150 stores in 2019

Starbucks will close 150 stores in 2019

FBN's Cheryl Casone on Starbucks' decision to raise its prices.

Starbucks said its profits will be lower than previously expected this year, and it will close more underperforming stores as part of a multipronged response to what chief executive Kevin Johnson on Tuesday called unacceptably slow growth.

Starbucks said its third quarter forecasts had been impacted by its decision to close 8,000 stores on the afternoon of May 29 to provide roughly 175,000 employees with anti-bias training.

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".

More news: Greece, Macedonia sign historic deal to end naming dispute

The company anticipates lower net new store growth in the United States for fiscal 2019 and said it would address rapidly changing consumer preferences by introducing new cold drinks like a mango dragon fruit beverage and focusing on growing health and wellness trends. 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.

The announcement was made on the heels of revealing that Starbucks was expecting same-store sales to grow just 1 percent for the quarter of the fiscal calendar beginning next month - after initially projecting a 2.9 percent growth.

Starbucks said it will return an additional $25 billion more to shareholders than initially planned in the form of share buybacks and dividends.

"We lost momentum", Johnson said in a presentation to analysts at the Oppenheimer Consumer Conference on Tuesday. It says it is going to concentrate on opening stores in markets that have fewer locations. Schultz is widely rumored to have political aspirations.

Related Articles

  • Luis Suarez completes preparations for 100th Uruguay cap against Saudi Arabia

    Luis Suarez completes preparations for 100th Uruguay cap against Saudi Arabia

    Seven of the Uruguayan players that will be on the pitch from the first whistle on Wednesday are aged 31 or over. Saudi Arabia was drawn into Group A and lost its World Cup opener 5-0 to host nation Russian Federation .
    Remarkable Ronaldo breaks Puskas' European record

    Remarkable Ronaldo breaks Puskas' European record

    Luis Suarez will make his 100th appearance for Uruguay when his national team faces Saudi Arabia in a make-or-break Group A game. Ronaldo has been in training with the Portugal ahead of his country's crucial Group B clash against Morocco on Wednesday .
    Senegal beats Poland 2-1, 1st African win at World Cup

    Senegal beats Poland 2-1, 1st African win at World Cup

    With Colombia and Japan the other teams in Group H , it's shaping up to be one of the more balanced quartets in the competition. Thiago Cionek's own goal, the defender deflecting in a shot from Idrissa Gueye , handed Senegal the lead in the 37th minute.
  • Germany 'played very badly' in Mexico loss - Loew

    Germany 'played very badly' in Mexico loss - Loew

    Germany's Thomas Muller and Joshua Kimmich in action with Mexico's Hector Moreno, Raul Jimenez and Jesus Gallardo. Julian Draxler and Matthias Ginter played in both tournaments and Marco Reus missed both with injuries.
    Suzuki previews all-new Jimny

    Suzuki previews all-new Jimny

    For now, here are studio pictures of the 2018 Jimny and Jimny Sierra, showing key details and features of the off-roader. In order to revive its market share in this segment, Maruti Suzuki has launched a substitute for it named Jimny .
    Four people wounded in Sweden shooting

    Four people wounded in Sweden shooting

    The men were shot as they left an internet cafe in the southeastern part of the southern Swedish city on Monday evening. A police spokesman told AFP that the possibility of a terrorist link to the attack had been discounted.
  • Gregg Popovich meets with Kawhi Leonard

    Gregg Popovich meets with Kawhi Leonard

    Leonard played in only nine games this season, scoring 16.2 points a night, well below his average of 25.5 in 2016-17. According to ESPN's Adrian Wojnarowski and Ramona Shelburne , Popovich has simply flown to LA to meet with Leonard.
    Panama coach blunt and honest before World Cup debut

    Panama coach blunt and honest before World Cup debut

    Now I'm playing in another World Cup in Russian Federation , and my brother is playing with me this time. Belgium coach Roberto Martinez was more effusive about his opponents.
    Jose Gimenez lifts Uruguay past Egypt with 89th-minute header

    Jose Gimenez lifts Uruguay past Egypt with 89th-minute header

    Should he return as hoped, it would be the ideal present - Salah will celebrate his 26th birthday on Friday. After their clash with Egypt, Uruguay face Saudi Arabia and host nation Russian Federation in Group A.
  • Captain Kane proud of England's persistence

    Captain Kane proud of England's persistence

    It was the first goal for an African nation at Russian Federation 2018 and it came against the run of play, controversially too. We were strong on set plays in the second half. "We put people under pressure even after we had scored our first goal".
    Eriksen-inspired Denmark out to spoil Peru's World Cup return

    Eriksen-inspired Denmark out to spoil Peru's World Cup return

    Speaking to the BBC ahead of Denmark's opening group match against Peru , Fabregas said: "I like him a lot". Jio TV and Airtel TV apps also have the rights to broadcast the match in India.
    USA  lawmakers, first lady call for end to migrant family separations

    USA lawmakers, first lady call for end to migrant family separations

    Thus, since they are taken into custody as potential criminals, their children are not allowed to stay with them. As a result, the children - who are not charged with a crime - are separated from the adults in their families.