(Boursier.com) — Starbucks stumbled last night by 3.7% on Wall Street on $88, after Howard Schultz, the former managing director of the chain who is taking over the controls, announced in a letter to shareholders a suspension of the buyback program. actions for the benefit of investments in the group, the stores and in favor of its employees. Schultz believes that the group’s cash will be better used this way.
The Starbucks CEO said he wasn’t focusing on the company’s stock price. The Wall Street Journal reports that Schultz promised employees he would focus on coffee shops, customers and employees: “I’m not in business, as a shareholder of Starbucks, to make every decision based on price. of action for the quarter”.
Starbucks announced last month the departure of Kevin Johnson, chairman and chief executive, after 13 years with the company, including the last five years as CEO. Johnson is stepping down and will continue as a Starbucks partner and special consultant to the company and board until September. The Starbucks Board of Directors has engaged in ongoing CEO succession planning since 2021, and expects to select a new leader by the fall. To ensure smooth management until a permanent successor is appointed, the board has appointed Howard Schultz as interim CEO. Schultz also joins the board.
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