A few minutes ago, as part of its continuing transformation agenda Starbucks (SBUX) announced that they will be closing 600 underperforming US stores. In addition, they said they will be opening less than 200 US stores in fiscal 2009, down from less than 400 in their most recent guidance (SBUX Press Release).
As I said back in January, I think Schultz will do as well as can be done in turning Starbucks business around. This is a bold move that only gets made by visionary CEO/Founders like Schultz who see the big picture and have total confidence in their own judgment. I expect many other businesses to make this kind of decision in time.
But it’s still a process. Starbucks stock is still in the penalty box for at least another year or two.
Disclosure: Top Gun has no position in Starbucks (SBUX) shares.