Starbucks (SBUX) has appointed a new global brand chief as incoming CEO Brian Niccol shakes up the retail coffee chain.
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Starbucks has named Tressie Lieberman as its new global chief brand officer, a newly created position under Niccol, who assumed the helm of the coffee company in September of this year. Lieberman will start at Starbucks on November 4 and report directly to Niccol.
Lieberman most recently was chief marketing officer at Yahoo. However, she previously worked with Niccol at Chipotle Mexican Grill (CMG), where she was vice president of digital marketing from 2018 to 2023. Lieberman and Niccol also worked together earlier in their careers at Yum Brands (YUM), which owns the Pizza Hut and Taco Bell restaurant chains.
Reviving the Starbucks Brand
Niccol is moving quickly to put his stamp on Starbucks and right the ship at the struggling coffee chain. A month into his tenure, the new CEO has said that his main focus is to turnaround the company’s declining sales in the U.S. Starbucks has reported same-store sales declines in its home market for three consecutive quarters as customers buy fewer of its pricey lattes and macchiatos.
Another top priority for Niccol is improving the company’s branding, both in the U.S. and abroad. In a statement announcing Lieberman’s hiring, Niccol said, “Starbucks is a brand people love. It’s time to tell our story again and reintroduce Starbucks to the world.”
Niccol has also ended discount pricing at the coffee chain since taking over and plans to use advertising to promote the company and drive sales of its beverages. Starbucks next reports quarterly earnings on October 30. The company’s stock is up only 2% this year amid a bull rally that has the benchmark S&P 500 index (SPY) trading at an all-time high.
Is SBUX Stock a Buy?
Starbucks stock has a consensus Moderate Buy rating among 24 Wall Street analysts. That rating is based on 15 Buy, seven Hold, and two Sell recommendations issued in the last three months. The average SBUX price target of $100.75 implies 4.05% upside from current levels.
