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The company anticipates 1 percent growth in global sales for the third quarter. Last month, Starbucks closed about 8,000 cafes so its employees could undergo racial-bias training, which did hurt sales in the quarter, Johnson said.

Competition from rivals like McDonald's and Dunkin' Donuts is heating up, said Bernstein analyst Sara Senatore in a research note. Stock for the company dropped as much as 5 percent in after-hours trading.

According to Bloomberg, the nationwide chain plans to reduce its amount of stores in "densely populated markets" across America, with the newly announced CEO saying "our shareholders deserve better".

It has missed analysts' estimates for same-store sales in the US -dominated Americas region in five of the last six quarters.

"The company's streamlining initiatives will enable greater agility in adapting more quickly to changes in consumer preferences, " the company stated. Schultz, who had already transitioned away from running the coffee chain's day-to-day operations, announced earlier this month he'd be leaving the company, fueling speculation he could be gearing up for a political career.

Starbucks fans may be in for some bad news.

The Seattle-based company announced Tuesday that it will close approximately 150 underperforming stores in its most densely populated US markets amid sluggish sales - up from its usual rate of 50 per year. The company said the closures will result in a slightly lower growth rate in company-operated stores. China is the company's biggest growth driver with same-store sales rising 4 percent in the last reported quarter.

The company also said it would look to cut general and administrative expenses with plans to partner with an external consultant to speed up the process.

In May, Starbucks revealed it's selling Nestlé the rights to market, sell and distribute its packaged coffee and tea globally for more than $7 billion. The overall number of stores will continue to increase, but that growth will be focused.


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