I have said before that SBUX's shareholders are paying dearly for the ill-conceived capital allocation decisions over the past three years. In the coming quarters, SBUX shareholders will be richly rewarded as the company corrects the excesses of the past and makes smarter capital allocation decisions for the future.
I love the shrink to grow stories, as the benefits to the P&L are immediate. First, by closing 600 stores that are losing money, EBITDA will improve. Second, 10% of the store base should see improved sales and profits due to the excess capacity taken out of the system.
This is a significant inflection point for the company.