12-02-2016, 02:41 AM
Starbucks Corporation’s (NASDAQ:SBUX) Howard Schultz announced he’s stepping down from leading the coffee giant, sending shares of SBUX stock plunging in after-hours trading.
In a statement on Thursday, the Seattle-based company announced Schultz will step down from his Chief Executive role next year, handing the reins to Chief Operating Officer Kevin Johnson. Johnson, a former technology executive who has served on the executive team for two years, will take the CEO job on April 3.
Regardless, new CEO Johnson will face a number of challenges when he takes over SBUX stock. The chain is facing new competition from specialty roasters like Stumptown and Intelligentsia, as well as from mass coffee purveyors like Dunkin’ Donuts. Lower mall foot traffic from online shopping has also taken a bite out of sales. Johnson will have to lay out a plan to address these threats if he wants to maintain investor confidence post-Schultz.
This will turn out different for Starbucks.
In a statement on Thursday, the Seattle-based company announced Schultz will step down from his Chief Executive role next year, handing the reins to Chief Operating Officer Kevin Johnson. Johnson, a former technology executive who has served on the executive team for two years, will take the CEO job on April 3.
Regardless, new CEO Johnson will face a number of challenges when he takes over SBUX stock. The chain is facing new competition from specialty roasters like Stumptown and Intelligentsia, as well as from mass coffee purveyors like Dunkin’ Donuts. Lower mall foot traffic from online shopping has also taken a bite out of sales. Johnson will have to lay out a plan to address these threats if he wants to maintain investor confidence post-Schultz.
This will turn out different for Starbucks.