Starbucks Corporation (NASDAQ:SBUX) announced that it would streamline the company, closing underperforming locations and scaling back its store growth.
"We must move faster to address the more rapidly changing preferences and needs of our customers," said CEO Kevin Johnson in a statement.
The company usually closes around 50 stores every year. However, it will triple the amount to 150 closures in 2019.
Starbucks is focusing on actively growing its app users, planning a redesign of the Starbucks Rewards program which includes more personalization features. Since April, the company has welcomed 5 million new digital members.
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The company expects to return around US$25bn in cash to shareholders through stock repurchases and dividends through fiscal 2020, a US$10bn increase from the 2017 cash return target.
Its board of directors gave the okay to 20% increase in the quarterly dividend, declaring a cash dividend of US$0.36 per share payable on August 24, 2018 to shareholders of record as of August 9, 2018.
Starbucks plans to discuss the changes in further detail at the Oppenheimer 18th Annual Consumer Conference in Boston on July 25.
The coffee chain also announced a new Instagram-worthy Mango Dragonfruit Refreshers drink on Tuesday. The bright pink tea drink is made with real pieces of dragon fruit.
Shares of the Seattle-based company were recently 3.9% lower to US$55.20 in extended trading.
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