Starbucks (NASDAQ:SBUX) has announced the final exit of its former CEO, Howard Schultz, from the company as part of a planned transition. He will now hold the honorary title of “chairman emeritus.” Schultz is stepping down from his position on SBUX’s board for the second time.
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It is worth mentioning that Schultz had several stints in the company since he took over the reins of SBUX in 1986. He continued to serve as the company’s CEO until 2000, only to return to the post from 2008 to 2017. Additionally, he took the top job for another eleven months, ending March 2023, to finally leave the leadership in the hands of the current CEO Laxman Narasimhan.
Under Schultz’s leadership, Starbucks transformed from a mere coffee bean seller to a renowned coffeehouse chain with more than 36,000 stores worldwide. Regarding his departure, the company said it was planned from before. Furthermore, Starbucks mentioned that he would hold no operational or fiduciary roles going forward.
Who is Replacing Schultz?
Starbucks has elected Wei Zhang to its board, effective October 1. Zhang has been associated with Alibaba Group (BABA) as a senior advisor and formerly led Alibaba Pictures Group as President.
It would be reasonable to expect that Zhang’s experience in China’s market could be valuable for Starbucks as the company seeks to bolster its position in this key market.
Is Starbucks Stock a Buy, Sell, or Hold?
On TipRanks, SBUX stock has a Moderate Buy consensus rating based on seven Buys and eleven Holds. The average Starbucks stock price target of $115.33 implies about 19% upside potential. The stock is down more than 2% year-to-date.
