Starbucks on Wednesday provided a major business update and perhaps most noteworthy to the Dunkin’ community is that new store development in the Americas will be virtually halted immediately, with the closure of some 400 Starbucks company units in the US over the next 18 months as well as an additional 200 in Canada. New store development will still be positive for the year, but far below the original target. This is part of the earlier expressed Starbucks strategy of portfolio repurposing and optimization, in that older, mainly café stores are closed in favor of drive-thru pods or a neighborhood cluster strategy of consolation to fewer better locations with drive-thru. What is newsworthy is that this has accelerated very quickly. Starbucks noted that America revenue would be “moderately negative through the next fiscal year (2021)”, meaning this real estate strategy takes time to work. A third Starbucks Pickup test store is being added to Grand Central Station in NYC and will highly figure in their real estate transformation plans going forward. Starbucks announced huge Q2 2020 revenue and operating negative impacts due to COVID-19 factors that will impact earnings—a $3.0 billion revenue decline and $2.2 billion operating income decline. These numbers were so large in absolute dollar terms – and because Starbucks is seen as a bellwether – that almost all restaurant stocks dropped Wednesday morning in reaction. Although still negative, Starbucks’ same store sales continued to improve week by week. Same store sales were minus 32% in the US in the last week of May. However, it was nice to see that Dunkin same-store sales were considerably more favorable at minus 17% in that same time frame.