Years of conservative boycotts have finally taken their toll on Starbucks.
The Seattle-based coffee giant says it will accelerate its store closings in the U.S. next year as it tries to boost sluggish sales.
Starbucks announced Tuesday that it will close a staggering 150 underperforming stores in heavily penetrated markets, up from the usual rate of 50 closings a year.
The company also said it expects a smaller-than-expected 1 percent growth in global sales for the third quarter, a period that encompassed an uproar over the arrest of two black men at a Philadelphia Starbucks.
Starbucks closed its U.S. stores on May 29 to conduct anti-bias training for its employees. The company has been struggling for years with it’s image after regularly inserting itself into political issues under former CEO Howard Schultz.
New CEO Kevin Johnson told investors the company halted its marketing campaign for cold beverages while it addressed the controversies, which further hurt sales.
Starbucks’ stock hit a new 52-week low on Wednesday after investor backlash over news.