Starbucks (SBUX) shares remain in focus on Sept. 25 after the coffeehouse chain announced plans to close roughly 250 of its underperforming stores across North America. The company expects the store closures to incur an estimated $300 million in restructuring charges and slow its net global expansion to 440 locations in fiscal 2026.
The announcement arrives as Starbucks stock has fallen out of favor with investors, currently down nearly 15% versus its recent high.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
www.barchart.comWhat Store Closures Mean for Starbucks Stock
The closure of 250 cafes, which represent about 15% of Starbucks’s overall North American footprint, is a core pillar of CEO Brian Niccol’s “Back to Starbucks” turnaround strategy. Management has identified locations lacking a viable pathway to acceptable margins or customer experience standards.
And while the restructuring charges create short-term financial noise, they free up capital to fund café remodels, kitchen upgrades, and tech operations.
In short, Starbucks is essentially reallocating capital away from low-margin units toward enhancing its high-margin footprint. This could protect long-term operating margin, drive sustained comparable-store sales growth, and help SBUX shares stage a meaningful comeback.
Is It Worth Investing in SBUX Shares Today?
Starbucks’s institutional ownership currently sits at more than 72%, indicating smart money believes in CEO Brian Niccol’s turnaround efforts.
In fact, the multinational came in handily above Street estimates in its latest reported quarter and raised its guidance for the full year as well, reinforcing that his plan is working indeed.
Even from a technical perspective, SBUX’s relative strength index (RSI) sits in the mid-20s as of writing, indicating oversold conditions that often trigger a near-term rally.
All in all, with a price-to-sales (P/S) ratio of less than 3x and a solid 2.65% dividend yield, Starbucks shares offer defensive stability for patient income investors.
How Wall Street Recommends Playing Starbucks?
Crucially, the analyst community remains bullish on SBUX stock for the next 12 months as well.
According to Barchart, the consensus rating on Starbucks sits at “Moderate Buy,” with a mean price target of about $111, indicating potential for a 20% rally from current levels.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
A $26.4 Million Reason to Buy GameStop Stock SBUX Stock Alert: What to Know as Starbucks Closes More Than 250 Stores Everpure Stock Just Hit a New All-Time High. What Comes Next. AutoZone Generates Strong Q4 Free Cash Flow - Is AZO Stock Too Cheap?