Topline
Starbucks founder Howard Schultz is returning as the coffee giant’s interim CEO when Kevin Johnson steps down next month after leading the company for five years, Starbucks said in a statement Wednesday, a rare second return for a top executive at a major company.
Key Facts
Schultz, 68–who served as Starbucks’ chief executive from 1986 to 2000 and returned from 2008 to 2017—will lead the company until the board finds a new leader, the company said.
Johnson, 61, will retire April 4 after five years as CEO and 13 years with Starbucks, and he will serve as a special consultant to the company and its board through September, the company said.
Starbucks shares were up 7.52% to $89.34 as of 11:30 a.m. ET Wednesday, but its shares are still off 23% this year due to higher costs and sluggish sales in China.
Schultz—a billionaire several times over thanks to Starbucks—will be paid $1 in salary, the company said.
Big Number
$4 billion. That’s Schultz’s estimated net worth, according to Forbes.
Key Background
Under Schultz’s leadership, Starbucks became a global brand with more than 3,000 stores worldwide from just 11. In the fourth quarter, Starbucks’ net income rose 349% to $1.76 billion on a 31% rise in sales to $8.1 billion. But its performance in China, the company’s second-biggest market, has lagged, with same-store sales falling 7% in the fourth quarter.
Tangent
The Seattle-based coffee giant’s leadership transition comes as a growing number of Starbucks stores in the U.S. are moving to form a union after about two decades of unsuccessful union efforts to organize.
Further Reading
Starbucks CEO Kevin Johnson is retiring, and Howard Schultz is returning as interim chief (CNBC)
