Hotline: 1800 102 2007
X
Search Business Opportunities
Jun, 29 2018

Starbucks worries biz after CFO Scott Maw announces exit

Schultz, who already had transitioned away from running the chain's day-to-day operations and passed the reins to Chief Executive Kevin Johnson, announced this month that he would be leaving his post as executive chairman effective June 26.

Starbucks Corp.'s chief financial officer will retire this year, sparking investor pessimism as the coffee giant already braces for a future without visionary leader Howard Schultz.

 retirement comes as Starbucks grapples with slowing sales in the United States, a tricky expansion in the key Chinese market and the departure of longtime executive Schultz, who built the chain into a powerhouse. The news sent the company’s shares to their lowest point in almost three years amid uncertainty about the company's future leadership.

Schultz, who already had transitioned away from running the chain's day-to-day operations and passed the reins to Chief Executive Kevin Johnson, announced this month that he would be leaving his post as executive chairman effective June 26.

Starbucks shares fell 2.6% to $48.54. The stock is down 15.5% so far this year.

Wall Street may be wondering whether Starbucks' management bench is deep enough. Troy Alstead, once seen as a possible successor to Schultz, left the company in 2015 after more than two decades. He had served as chief financial officer before taking over as operations chief.

Maw, 50, is departing after the company said last week that it was closing some stores in the United States. Starbucks also said it expects comparable sales to rise just 1% globally in its current quarter — its worst performance in about nine years. The world's biggest coffee chain is struggling with slower afternoon sales and a decline in its signature Frappuccino line.

"The sudden nature of this announcement and Maw's relatively young age and tenure in his role suggest the decision [to] leave was perhaps not entirely voluntary," Sanford C. Bernstein & Co. analyst Sara Senatore said in a note. "While the fundamental deterioration may have tested the ability of any CFO to provide accurate guidance, we think Maw may be viewed at least partly to blame for the damage to Starbucks credibility that has resulted."

Starbucks said Maw will exit Nov. 30 after seven years with the company, which he originally joined as global controller. The chain, which has launched an external search for a new CFO, said Maw will stay on as a senior consultant through March.

Comment
Related opportunities
  • Real Estate Sub
    About Us: RE/MAX is one of the World’s largest and most..
    Locations looking for expansion New Delhi
    Establishment year 1973
    Franchising Launch Date 2009
    Investment size Rs. 10000 - 50 K
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater South Delhi New Delhi
  • HR & Recruitment
    About Us: Jobjabs is the pioneer of organized recruitment services in..
    Locations looking for expansion Uttar pradesh
    Establishment year 2010
    Franchising Launch Date 2016
    Investment size Rs. 50 K - 2lac
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Noida Uttar pradesh
  • Competitive Exam Coaching Institute
    About Us: Chennai RACE Coaching is an education industry in the..
    Locations looking for expansion Tamil nadu
    Establishment year 2012
    Franchising Launch Date 2015
    Investment size Rs. 30lac - 50lac
    Space required 5000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Chennai Tamil nadu
  • Souvenir Shops
    About Us: Established in Hong Kong, Coko is the brainchild of..
    Locations looking for expansion Delhi
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 50lac - 1 Cr.
    Space required 800
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities