Starbucks will close all of its La Boulange cafes by the end of September.
It bought the bakery chain in 2012 to address customer complaints about an uninspiring menu.
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The company said there has been strong growth in food sales since the $100 acquisition three years ago, but that running the 23 La Boulange restaurants, which are mostly found in San Francisco, is no longer sustainable.
Starbucks will also shutter two manufacturing plants that supplied La Boulange and an Evolution Fresh retail store in San Francisco.
La Boulange food will still be available at Starbucks in the U.S. and Canada.
Shares of Starbucks Corp. reached an all-time high of $53.14 on Tuesday and edged higher before the opening bell Wednesday.