A shake-up in the retail coffee industry: Starbucks (NASDAQ:SBUX) CEO Kevin Johnson is retiring after five years on the job.
Meantime, Howard Schultz will return as interim CEO, once again taking the helm of the company he elevated into a global brand while the company searches for a long-term successor. This will be his third tenure as the coffee giant’s chief executive.
Shares of the company rose $5.05, or 6.1%, in early Wednesday trading on the news to $88.17. The company announced the leadership transition ahead of its annual shareholder meeting on Wednesday.
"A year ago, I signaled to the Board that as the global pandemic neared an end, I would be considering retirement from Starbucks. I feel this is a natural bookend to my 13 years with the company," Johnson said in a statement.
Johnson joined the board in 2009 while working as CEO of Juniper Networks, and became a member of the leadership team in 2015 as president and COO. In 2017, Johnson was named President and CEO, succeeding Schultz. Wednesday’s annual shareholder meeting marks his 14th with the company, he wrote in his final letter to employees.
In addition to steering the company through the pandemic, Johnson used his expertise as a former tech executive throughout his tenure to push Starbucks into the digital age, revamping its loyalty program and updating its store footprint to reflect the different ways consumers want to buy their coffee. He also accelerated the chain’s expansion in China, now its second-largest market.
In his time as head of the company, shares of Starbucks rose more than 50%, including Wednesday’s gains.
