Starbucks up after 40,000% gain since IPO, despite $400M charge

On May 15, Starbucks announced it would cut 300 U.S. corporate roles and record a $400 million restructuring charge. The company also reported stronger-than-expected results for its second quarter of fiscal 2026, and shares moved higher following the announcements.

Starbucks reported Q2 revenue of $9.53 billion, up 9% from a year earlier. Global same-store sales increased 6.2%, with North America same-store sales up 7.1% and transactions rising 4.4%. It was the first quarter in more than two years in which both revenue and earnings expanded. Management raised full-year same-store sales guidance to at least 5%, up from a prior target of 3%, and reaffirmed plans to add 600 to 650 net new stores in fiscal 2026. The company now operates more than 41,000 locations worldwide.

The job reductions affect corporate functions including marketing, human resources and supply chain and will include the closure of some regional support offices. Starbucks said coffeehouse staff will not be affected. The $400 million restructuring charge includes a $280 million write-down on long-term assets and about $120 million in cash severance payments.

Shares closed near $106.79, giving Starbucks a market value of about $121.7 billion. The company went public on June 26, 1992, at $17 a share; after six 2-for-1 splits the IPO price adjusts to roughly $0.26. An initial $10,000 investment at the IPO would be worth close to $4 million today, a gain of approximately 40,000%. Year to date in 2026 the stock is up about 26%, and the company is trading at an elevated price-to-earnings multiple near 81 times.

Company leaders described the corporate cuts and asset transactions as part of the “Back to Starbucks” plan to improve margins and operational efficiency. Television commentator Jim Cramer called the cuts an effort to “right-size” the company.

The company also noted that a recent sale of its China joint venture freed about $3.1 billion in cash.