Starbucks (SBUX) will close about 250 North American coffeehouses, or about 1% of its more than 18,000 locations, because they "do not deliver the coffeehouse experience and financial performance expected of the brand," the company said in a regulatory filing submitted Thursday.

The closures, the majority of which are expected to be completed by the end of fiscal 2026, are part of a strategy to revitalize the chain, the company said.

The company expects fiscal 2026 net new global coffeehouse openings will be around 440, down from its previous guidance of 600 to 650, it said.

Starbucks expects approximately $300 million in restructuring charges, including about $200 million in cash charges primarily related to lease exits and employee separation benefits, and about $100 million in non-cash charges related to asset disposals and impairments.