Starbucks' board approved further steps under the Back to Starbucks plan, including closing about 1% of its North America coffeehouses and recording roughly $300 million in related restructuring charges. The plan also includes Green Apron Service, standardized store scorecards, and a $2 billion cost-savings program through fiscal 2028, and is expected to keep affecting operating margins and earnings as savings and process changes flow through. The company's shares are down about 10.2% on a 30 day share price return and 8.5% on a 90 day share price return, though the year to date share price return is 13.7% and the 1 year total shareholder return is 16.0%. The most followed narrative pegs Starbucks fair value at about $112 per share against a recent $95.43 close, while the stock trades on a P/E of 54.9x, above the US Hospitality industry at 19.1x and a fair ratio of 33.1x.
Starbucks CorporationBoard approved closing ~1% of North America coffeehouses with ~$300M restructuring charges and a $2B cost-savings program expected to pressure operating margins and earnings.
