Shares of the American coffee company giant is now in danger of declining as the famous coffeehouse chain has just recently announced that their current chief executive is to step down from his post.
This raised investor concern as Starbucks CEO, Howard Schultz, have stepped down before as CEO back in 2000 after being the chief executive for eighteen years and returned in 2008 in aid of the declining company. Shares then declined to as much as 3.6% leading investors to worry over the effects of the most recent news to what happened before.
Although shares seemed unaffected this time as Schultz would not be leaving the company completely. Schultz is to become the executive chairman starting April next year. This would allow him to focus on the brand’s ultra premium reserve stores and focusing on the brand’s social agenda. Along with these purposes is that Schultz is also tasked to show the company’s Roastery and Tasting Rooms all over the globe. He is set to overlook the launch of special reserve coffee shops which serve higher-end coffee worldwide. The position is to be replaced by the company’s current Chief Operating Officer Kevin Johnson.
Schultz leadership has saved the company
SBUX Shares In The Coming Months
On the announcement of Howard Schultz’s decision to step down and focus on the company’s high-end shops, shares dropped down by 3.3% at around $56.78 in Thursday’s trading.
Although the announcement was yet to be effective until April 3 next year, investors are now shaken to the company’s performance in the months to follow as Schultz was responsible for the company’s success for the past eight years and was responsible for the company’s growth despite the losses it suffered during the recession back in 2007.
SBUX shares which declined by 4% on Wednesday is now facing a potential decline in the following months as investors are taking a closer look at the company’s next steps in the following months as many acknowledge the impact of Schultz’s leadership over the past years. Investors are also keeping their eyes trained on Schultz’s successor Kevin Johnson.