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No Missteps Expected As Starbucks CEO Schultz Passes The Baton

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No Missteps Expected As Starbucks CEO Schultz Passes The Baton

Oppenheimer said in a note on Friday that the CEO transition at Starbucks Corporation (NASDAQ: SBUX) is unlikely to lead to any unexpected missteps, as chief operating officer Kevin Johnson, who is set to take over from Howard Schultz, was already involved in running the business on a daily basis. Johnson is set to become the CEO on April 3, 2017.

Giving some background on CEO-destined Johnson, analyst Brian Bittner said he has been a board member for the last seven years and ran the company's global business with Schultz over the last two years.

Oppenheimer noted Schultz is to transition to the role of executive chairman and focus on Starbucks Reserve Roasteries, globally. With Schultz's focus shifting to growing Reserve Roasteries globally, the firm believes he will remain an invaluable resource.

Although disappointed to see Schultz, whom the firm termed as a visionary, stepping back from day-to-day operations, it said it believes the company is left in capable hands. The firm maintains its Outperform rating and $65 price target for the shares of the company.

At last check, Starbucks was losing 2.43 percent to $57.08.

Latest Ratings for SBUX

DateFirmActionFromTo
Nov 2019MaintainsBuy
Oct 2019MaintainsBuy
Jul 2019MaintainsNeutral

View More Analyst Ratings for SBUX
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Posted-In: Brian BittnerAnalyst Color News Restaurants Management Analyst Ratings Movers General Best of Benzinga

 

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