Starbucks has ousted its CEO and announced store closings in the U.S. not long after McDonald's announced its plans to bring its premium coffee service to its nearly 14,000 U.S. outlets.
The Jan. 7 ouster of CEO Jim Donald, coupled with plans to close some U.S. stores and slow down opening new ones, comes as the world's largest chain of coffeehouses has seen its stock plummet 50% over the last year amid declining traffic in its domestic stores.
Starbucks wouldn't say how many stores would close and declined to detail its revised growth plans until it reports fiscal first-quarter earnings on Jan. 30.
The company's announcement after regular markets closed Jan. 7 sent its shares up 9% in after-hours trading. The shares finished the regular session at $18.38, just above their 52-week low of $18.