Starbucks Corporation Reports $1 Billion Restructuring Plan and Store Closures
Summary
On September 23, 2025, Starbucks Corporation's Board approved a restructuring plan under its "Back to Starbucks" strategy, involving coffeehouse closures and support organization transformation. The Company estimates approximately $1 billion in related costs, with 90% for North America, and expects a significant portion in fiscal year 2025. These charges include $150 million for employee benefits, $400 million for asset disposal/impairment, and $450 million for lease-related costs. Approximately $400 million are non-cash, while $600 million are future cash expenditures.
Why It Matters
This $1 billion restructuring plan signals a significant strategic shift for Starbucks Corporation, focusing on optimizing its store portfolio and support organization. Investors should note the substantial financial impact, including $600 million in future cash expenditures, and the long-term implications for the company's operational efficiency and brand revitalization under the "Back to Starbucks" strategy.
Key Quote
“The Company expects that a majority of the store closures will be completed by the end of this fiscal year.”
— From Item 2.05
Filing Details
Reported Items
Additional Information
- CIK Number
- 0000829224
- Filing Date
- Thursday, September 25, 2025
- Filing Time
- 12:00 AM UTC
- Form Type
- 8-K
- Materiality Level
- high
- Sentiment
- neutral