The affected stores are located in mostly urban areas that are densely populated with Starbucks locations.
Coffee retail giant Starbucks announced Tuesday its plan to close approximately 150 stores across the United States as a result of "slow growth", sending the Seattle-based corporation's stock prices down almost 7%.
Competition from rivals like McDonald's and Dunkin' Donuts is heating up, said Bernstein analyst Sara Senatore in a research note.
Watch Starbucks trade in real time here.
The company anticipates lower net new store growth in the United States for fiscal 2019 and said it would address rapidly changing consumer preferences by introducing new cold drinks like a mango dragon fruit beverage and focusing on growing health and wellness trends.
"Our recent performance dos not reflect the potential of our exceptional brand and is not acceptable", he said.
"In this last quarter, we had an unplanned initiative related to the incident in Philadelphia that culminated in closing stores", Johnson said on a call from the Oppenheimer Consumer Conference, according to CNN.
Starbucks' Executive Chairman and co-founder Howard Schultz said earlier this month that he is stepping away from the company on June 26, ending an era.
"We have a line that we'd love to share with our customers later this year, so it is in our plans", she said. Schultz had operated Starbucks at a growth rate that has made many people a lot of money, as stock prices have increased in eight of the last 10 years. The overall number of stores will continue to increase, but that growth will be focused.
The company said global comparable store sales were on pace to rise 1% in the current third fiscal quarter, far below the 3% jump Wall Street was expecting.