SEATTLE — Starbucks Corp. fired Chief Executive Jim Donald yesterday, handing the reins back to Chairman Howard Schultz as part of a restructuring.

The move, coupled with plans to close some U.S. stores and slow down opening new ones, comes as the world's largest chain of coffee houses has seen its stock plummet 50 percent over the last year amid declining traffic in its domestic stores.

Starbucks wouldn't say how many stores would close and declined to detail its revised growth plans until it reports first-quarter earnings on Jan. 30.

Starbucks said the leadership shuffle is part of a series of other initiatives, including closing U.S. stores that aren't performing well, introducing new products and store designs, and improving training for baristas.

The company said it plans to take some of the capital originally intended for U.S. store growth and use it to accelerate its international expansion.

Schultz, who served as CEO from 1987 to 2000, said he plans to remain the company's top executive "for the long term" and that his agenda will also include streamlining the company's management.

Donald had been CEO since March 2005, when he was promoted from president of the company's North American division to replace Orin Smith, who retired.

Starbucks has struggled in recent months as consumers have cut back on spending because of declining home values and higher fuel prices. Meanwhile, competitors such as Dunkin' Donuts and McDonald's have launched their own lines of gourmet coffee.

The Wall Street Journal, citing internal McDonald's documents, reported yesterday that the fast-food chain plans to add coffee bars with baristas serving cappuccinos and iced coffees at its nearly 14,000 locations.

Schultz argued that competition, rising dairy prices and a faltering economy aren't the company's main problems. He said Starbucks has spent the last several years "trying to invest ahead of the growth curve — in people, process, infrastructure, roasting plants, coffee buying," and that has taken attention away from the experience customers are having in its stores.

"This is a problem that I think we've created, and, as a result of that, that we can fix," Schultz said.