Starbucks To Close 150 Underperforming Stores

SEATTLE, WA - Starbucks announced at an investors' meeting Tuesday that it will close 150 underperforming stores, according to USA Today. Typically the coffee shop chain closes 50 stores per year, but has increased this number and will close stores in areas that are already packed with them. Shares dropped 1.6% following the announcement.

"Our recent performance does not reflect the potential of our exceptional brand and is not acceptable," CEO Kevin Johnson said in a statement. "We must move faster to address the more rapidly changing preferences and needs of our customers."

The closings will make way for Starbucks to open shops in new markets where there's demand, USA Today reported.

Starbucks also announced the addition of a new permanent menu item, the Mango Dragonfruit Refresher. This marks the company's shift away from numerous seasonal beverages toward more permanent menu items.

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Image via Neal McNamara/Patch