Tuesday, January 08, 2008

Starbucks dumps CEO, shares blast off

Original Starbucks© logo.
Considered too sexy.

This is the most complete story I ran into.

There always has to be a scapegoat doesn't there?

Why can't Jim Donald make these changes. They're so simple a ten year old could pull it off. He was only in office a couple years just as the current economic downturn hit and he's taking the fall?

The fucking weasels.

No specific reason was given in the story as to why he needs replacing.
Starbucks Corp. said Monday it is returning its chairman, Howard Schultz, to the chief executive's job to lead a major restructuring initiative, replacing CEO Jim Donald.

The move, coupled with plans to open new U.S. stores at a slower pace, comes as the world's largest chain of coffee houses has seen its stock plummet 50 percent over the last year amid declining traffic in its domestic stores.

Starbucks' announcement after regular markets closed sent the company's shares up $1.67, or 9 percent, in after-hours trading. The shares had gained 27 cents to $18.38 in the regular session.

Starbucks (SBUX, Fortune 500) said the leadership shuffle is part of a series of other initiatives include closing U.S. stores that aren't performing well, introducing new products and store designs, and improving training for baristas.

The company said it plans to take some of the capital originally intended for U.S. store growth and use it to accelerate its international expansion.

Schultz said he is returning to the CEO role "for the long term" and that his agenda will also include streamlining the company's management.

Schultz previously served as CEO from 1987 to 2000.

Donald had been CEO since March 2005, when he was promoted from president of the company's North American division to replace Orin Smith, who retired.

The world's largest chain of coffee houses has struggled in recent months as consumers have cut back on spending amid declining home values and higher fuel prices. Meanwhile, competitors like Dunkin' Donuts and McDonald's Corp (MCD, Fortune 500). have cut into Starbucks' customer base by launching their own lines of gourmet coffee.

Jim Donald could always put "Mc" in front of his name and go to the competition.

And as for McDonald's and Dunkin' Donuts, its gonna be difficult for anyone to compete if their gourmet coffees are just as good as Starbucks©, considering the volume of customers those two get. And they gots fries and donuts! Mmmm.

Personally, I like coffee black and strong enough to melt a spoon. And definitely without cinimmon, foam, whip cream and whatever fucking else Starbucks©, puts into it.

Via CNN Money.



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