Management Shuffle at Starbucks - Analyst Blog
01 February 2014 - 9:55AM
Zacks
Coffee giant, Starbucks Corporation (SBUX),
recently changed its management positions to derive maximum
benefits out of the retail, consumer, mobile and digital shifts
that are currently underway by leveraging its resources and
operations.
Starbucks chief financial officer and group president of Global
Business Services, Troy Alstead will be promoted to the position of
chief operating officer (COO). Scott Maw will be promoted to the
position of Global Technology and Global Supply Chain Organizations
president and new chief financial officer. Craig Russell will be
the executive vice president of Global Coffee
Together with the new leadership team, Howard Schultz, Starbucks
chairman, president and CEO, will focus on innovation in coffee,
tea and next generation retailing and payment initiatives to
position Starbucks for its future global growth.
Alstead will be responsible for regular operations of the
enterprise, which include allotting investments across business
units. Alstead will head Group presidents including Cliff Burrows
(U.S., Americas and Teavana), John Culver (China and Asia Pacific,
Channel Development and Emerging Brands), EMEA president Kris
Engskov and Global Technology and Global Supply Chain Organizations
president and new chief financial officer Scott Maw.
Craig Russell will be the executive vice president of Global Coffee
and overlook Starbucks Farmer Support Centers and supply chain
operations, which involve all aspects of the coffee business,
including quality, innovation, purchase, education and
engagement.
During first-quarter fiscal 2014, Starbucks saw a major shift in
consumer shopping behavior from store purchases to online purchase.
Also, Schultz said that consumers preferred to gift shopping cards
instead of a particular item this holiday season.
Dollars loaded on the loyalty cards increased an impressive 24%
to $1.4 billion in the quarter, suggesting that millions of
customers will be visiting Starbucks stores in the future quarters
thereby boosting the top line. Also, the company processed more
than 40 million new Starbucks card activations, valued at over $610
million in the U.S. and Canada alone in the first quarter.
Schultz believes that Starbucks’ strong digital, card, loyalty and
mobile capabilities make it one of the very few retailers to
benefit from this shift in consumer shopping behavior. With the
recent managerial changes, Schultz intends to focus on growth
strategies and integration of retail and e-commerce, digital, card
and mobile assets across the world.
Starbucks currently carries a Zacks Rank #3 (Hold). Other companies
in the restaurant sector that warrant investor attention includes
Fiesta Restaurant Group, Inc. (FRGI),
Brinker International, Inc. (EAT), and
Buffalo Wild Wings Inc. (BWLD). Fiesta Restaurant
Group carries a Zacks Rank #1 (Strong Buy), whereas Brinker
International and Buffalo Wild carry a Zacks Rank #2 (Buy).
BUFFALO WLD WNG (BWLD): Free Stock Analysis Report
BRINKER INTL (EAT): Free Stock Analysis Report
FIESTA RESTRNT (FRGI): Free Stock Analysis Report
STARBUCKS CORP (SBUX): Free Stock Analysis Report
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