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Starbucks Has History of Making Bad Deals — All 379 Teavana Stores to Now Vanish

Starbucks (SBUX) has a mixed track record on acquisitions, something that came to forefront once again when the coffee king reported its latest results on Thursday.

After missing Wall Street's sales estimates for the third quarter, Starbucks announced that it would be closing up shop at Teavana, the tea chain it acquired for an astronomical price of $620 million in 2012.

"As reported on the Q2 call, many of the company's principally mall-based Teavana retail stores have been persistently underperforming," Starbucks said in a statement. "As a result, Starbucks will close all 379 Teavana stores over the coming year, with the majority closing by Spring 2018."

On its previous earnings call with analysts in April, Starbucks CEO Kevin Johnson, who took over from longtime leader Howard Schultz earlier that month...


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