The brand also announced a multitude of changes, primarily a re-focus in underserved areas versus adding more stores nearer locations that are already performing well.
"It seems fairly clear that the low-hanging fruit on causing everybody to get addicted to their (Starbucks) fantastic products is kind of in the rear-view mirror", said Tony Scherrer, director of research at Smead Capital Management". The company's stock is now down about 7% in 2018, well off the S&P 500.
Meanwhile, sales are expected to grow just 1 percent in the next quarter.
Starbucks Announces Major Store Closings Coming in 2019
The Seattle-based company said it will close about 150 stores in fiscal 2019 in its most densely penetrated markets, 100 more than its historical average. That alliance frees Starbucks to focus on improving its mainstay USA cafe business, where traffic growth had stalled. U.S.net store growth peaked at 6 percent in Starbucks' 2017 fiscal year.
Starbucks' Executive Chairman Howard Schultz stepped away from the company in June surprising investors at time when the company has faced raft of worrying headlines.
Starbucks said it will return an additional $25 billion more to shareholders than initially planned in the form of share buybacks and dividends. That's their lowest quarterly growth since 2009, Bloomberg.com reported.
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. Additionally, it plans to cut general and administrative costs, and has hired a consultant to help in this area. Starbucks said it also will slow the growth of licensed stores in airports, supermarkets and other retail stores, reflecting criticism that the coffee-shop pioneer was expanding too rapidly.
Tech condemns Trump: Apple, Microsoft, Airbnb oppose separating families at the border
In the five weeks from the announcement, more than 2,300 children were taken from their parents and adult relatives. The audio of the 10 children is just a tiny percentage of what is happening at the U.S. border.