Starbucks: to close more stores as growth lags
(CercleFinance.com) - Starbucks will increase closures of underperforming company-operated stores in its most densely penetrated markets to approximately 150 in fiscal year 2018/2019, from a historical average of up to 50 per year.
At a strategic update on Tuesday, the coffee chain said that this will result in a slightly lower growth rate in net new company-operated stores in 2018/2019.
For the third quarter of fiscal year 2017/2018, the company anticipates just 1% growth in comparable store sales globally.
On a brighter note, Starbucks said that major digital initiatives should contribute one to two points of comparable growth in the US in fiscal year 2018/2019.
Another positive is that the Seattle-based group also raised its target for cash returns to shareholders to 25 billion dollars through FY 2019/2020, including a 20% increase in the company's quarterly dividend.
After these announcements, Starbucks shares are down 4.3% in pre-market trading on the Nasdaq this Wednesday.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
At a strategic update on Tuesday, the coffee chain said that this will result in a slightly lower growth rate in net new company-operated stores in 2018/2019.
For the third quarter of fiscal year 2017/2018, the company anticipates just 1% growth in comparable store sales globally.
On a brighter note, Starbucks said that major digital initiatives should contribute one to two points of comparable growth in the US in fiscal year 2018/2019.
Another positive is that the Seattle-based group also raised its target for cash returns to shareholders to 25 billion dollars through FY 2019/2020, including a 20% increase in the company's quarterly dividend.
After these announcements, Starbucks shares are down 4.3% in pre-market trading on the Nasdaq this Wednesday.
Copyright (c) 2018 CercleFinance.com. All rights reserved.