In April 2022, Starbucks (SBUX) brought back founder Howard Schultz as interim CEO. However, the coffee chain is searching for a permanent CEO as Schultz plans to step down by March 2023. Starbucks is considering external candidates for the top job as it seeks fresh blood that would bring new talent and skills.
“For the future of the company, we need a domain of experience and expertise in a number of disciplines that we don’t have now…It requires a different type of leader,” the Wall Street Journal quoted Schultz.
Meanwhile, as Starbucks favors external candidates in the CEO hunt, several veteran executives are leaving the coffee chain. According to WSJ, the departing Starbucks executives include, senior vice president of public policy; executive vice president of public affairs; and chief human-resources officer.
The coffee chain aims to name its new CEO by the fall. The company has talked to a number of promising candidates for the job. Starbucks’ CEO search comes at a time when the company is also trying to dissuade its store workers from joining labor unions.
Wall Street’s Take
The Street is cautiously optimistic about Starbucks with a Moderate Buy consensus rating, based on 13 Buys and nine Holds. The average Starbucks price forecast of $95.05 implies 20% upside potential to current levels. Shares have declined 31% year-to-date.
Stock Investors
TipRanks’ Stock Investors tool shows that investor sentiment is currently Positive on Starbucks, with 2.2% of portfolios tracked by TipRanks increasing their exposure to SBUX stock over the past 30 days.
Key Takeaway for Investors
Schultz turned Starbucks into a global coffee brand from a local coffee-shop chain in Seattle, which means he knows how to best run the chain. As someone who led the business for many years and understands what it needs to do to succeed, Schultz seems to have identified what is ailing Starbucks and believes the solution is bringing on a leader from outside. Meanwhile, Schultz has been buying more Starbucks shares during the market dip.
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