Starbucks Shut 400 Stores In The US: Here's Why

The popular coffee chain Starbucks has reportedly closed over 400 stores in US as part of its $1 billion restructuring plan. In New York city alone, Starbucks shut down 42 stores or 12 per cent of its total

after losing the spot of the largest chain in Manhattan to Dunkin’, according to a report of CNN Business.

Starbucks also reportedly closed more than 20 locations in Los Angeles this year; 15 in Chicago; seven in San Francisco; six in Minneapolis; five in Baltimore; and dozens more in other cities, the CNN Business report added.

Starbucks said it reviewed its more than 18,000 stores across the US and Canada and shut outlets that were underperforming or failed to meet brand standards, a company spokesperson told CNN Business.

The coffee chain plans to open new stores and remodel existing ones in 2026, including in major cities such as New York and Los Angeles. These outlets will feature refreshed designs and upgraded customer experiences in line with the Starbucks brand, the report said.

Starbucks reported mixed results for the fourth quarter and full fiscal year ended September 28, 2025, even as the company posted global comparable store sales growth for the first time in seven quarters, signalling early traction for its “Back to Starbucks” turnaround strategy.

For the September quarter, Starbucks’ consolidated net revenues rose 5% year-on-year to $9.6 billion. However, profitability remained under pressure due to restructuring costs and higher operating expenses.

GAAP earnings per share (EPS) fell sharply to $0.12, down 85% from last year

Adjusted (non-GAAP) EPS stood at $0.52, down 35% year-on-year

Global comparable store sales increased 1%, driven mainly by higher transactions

In the US and North America, comparable store sales were flat, with a 1% rise in average bill size offset by lower customer traffic. International markets performed better, with comparable sales up 3%, led by strong transaction growth, including a 2% rise in China.