Starbucks announced Tuesday that part of its “strategic priorities” it will shutter approximately 150 stores during it’s upcoming fiscal year.
“While certain demand headwinds are transitory, and some of our cost increases are appropriate investments for the future, our recent performance does not reflect the potential of our exceptional brand and is not acceptable,” said Kevin Johnson, Starbucks president and CEO.
It’s not immediately clear where the closures will occur, but according to the announcement the shutdowns will take place during fiscal year 2019 in “underperforming company-operated stores” located in the Starbucks’ “most densely penetrated markets.”
The news came as part of an investor presentation in which the company reported it anticipates 1 percent growth “in comparable store sales” globally in Q3 FY18. Starbucks also said it plans to return $25 billion to shareholders in dividends and buybacks through fiscal year 2020.