Starbucks Closes Underperforming Stores; Eli Lilly Gets FDA Approval for New Insulin
Stocks were mixed on Thursday as Treasury yields surged and expectations rose for another Federal Reserve rate hike. However, optimism around a potential U.S.-Iran deal helped major averages recover from morning lows. Starbucks announced the closure of approximately 250 underperforming North American cafes—about 1% of its regional footprint—as part of CEO Brian Niccol's ongoing turnaround strategy. The closures are expected to result in $300 million in restructuring charges and a revised store opening forecast for fiscal 2026. Analysts view the move positively, noting that these stores were generally less profitable and expecting some sales to shift to nearby locations. Meanwhile, Eli Lilly received FDA approval for its once-weekly insulin Onswik for adults with type 2 diabetes, offering an alternative to daily injections. While analysts do not expect Onswik to significantly impact Lilly's long-term revenue—projected to be less than 1% of sales in 2030—the approval strengthens the company’s diabetes portfolio. The broader pharmaceutical industry is increasingly looking toward China for new drug candidates, as seen through a $3.35 billion licensing deal between Lilly and InnoCare Pharma.
Topics: Federal Reserve rate hike expectations oil prices Starbucks restructuring Treasury yields U.S.-Iran deal speculation