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Starbucks closing 150 public restrooms as growth slows significantly
| Mint Dingle Berry School | 06/19/18 |
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Date: June 19th, 2018 4:38 PM Author: Mint Dingle Berry School https://www.bloomberg.com/news/articles/2018-06-19/starbucks-pumps-the-brakes-in-its-home-market
Americans' long-running joke about a Starbucks on every corner may be nearing its end.
The coffee behemoth is retrenching in its home market as it contends with sales growth that Chief Executive Officer Kevin Johnson acknowledges isn’t fast enough. The cafe chain said Tuesday it expects comparable sales to rise just 1 percent globally for the current quarter—the worst performance in about nine years. That’s well below the 2.9 percent analysts were expecting, according to Consensus Metrix.
Starbucks also plans to close about 150 company-operated stores in densely penetrated U.S. markets next fiscal year, three times the number it historically shuts down annually. Shares of Starbucks slid as much as 6.3 percent in late trading Tuesday to $53.82.
“Our growth has slowed a bit,” Johnson said in an interview. “I expect better, I think our shareholders deserve better, and we're committed to address that.”
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The closing stores are often in “major metro areas where increases in wage and occupancy and other regulatory requirements” are making them unprofitable, Johnson said. “Now, in a lot of ways, it's middle America and the South that presents an opportunity.” |