Starbucks to incur $400M in restructuring charges in FY26

In a regulatory filing, the company stated: “On May 13, 2026, the Board of Directors of Starbucks (SBUX) approved further actions under its previously announced “Back to Starbucks” strategy that focuses on revitalizing coffeehouses and enhancing the customer experience, which the Company believes will drive long-term growth and value for partners and shareholders. As part of its strategy, the Company has previously communicated that it is pursuing $2 billion in cost savings initiatives and that its international business has moved towards a model where nearly 90% of its coffeehouses are licensed. Under the approved restructuring plan, the Company plans to capture cost savings by further streamlining its domestic and international support organization and non-retail facilities. In addition, the Company is reducing the future operational complexity of its Starbucks Reserve and Roastery locations, taking learnings from its core coffeehouse operations. The Company expects that a majority of the plan actions will be completed by the end of this fiscal year with a significant portion of the associated cash and non-cash charges incurred in fiscal year 2026. Of the approximately $400 million of restructuring charges to be incurred, the Company anticipates that approximately $280 million will be non-cash charges due to impairment of long-lived assets, including right-of-use lease assets, primarily related to reassessment of the asset group associated with its ongoing Starbucks Reserve and Roastery locations and optimizing its non-retail support facility portfolio. The remaining $120 million of restructuring charges will be cash charges primarily related to employee separation benefits due to further optimization of our global support organization.”