Retail coffee chain Starbucks (SBUX) has hired two former executives from Taco Bell as the company continues to shake-up its senior leadership team under CEO Brian Niccol.
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“As we focus on our ‘Back to Starbucks’ plan, we need a new operating model for our retail team, with clear ownership and accountability and an appropriate scope for each role,” wrote Niccol in a memo to employees that was also posted to the company’s external website.
Before spending six years at the helm of Chipotle Mexican Grill (CMG), Niccol served as CEO of Taco Bell. Since assuming the CEO role at Starbucks last September, Niccol has hired several former colleagues from Taco Bell to help him transform the struggling coffee chain. Last Fall, he hired Taco Bell alumnus Tressie Lieberman to serve as Starbucks’ new global chief brand officer.
Reviving the Starbucks Brand
The latest executive hires come on the same day that Starbucks is scheduled to report its financial results for the fourth quarter of 2024 after the U.S. stock market closes. Analysts are bracing for another difficult print from the company as Niccol works to turnaround the company that has struggled with slowing sales and a troubled overseas expansion, notably in China.
In addition to hiring a new senior leadership team, Niccol has also split the role of North American president into two jobs, increased the company’s advertising and marketing budgets, put a freeze on price increases, and launched new ceramic mugs and free refills for patrons.
New Executives
The new hires from Taco Bell are Meredith Sandland, who will hold the role of chief store development officer. Sandland previously served as Taco Bell’s chief development officer. Also, Mike Grams will join Starbucks as the company’s North America chief stores officer. Grams had been with Taco Bell for more than 30 years, most recently as that chain’s global chief operating officer.
Both Sandland and Grams will be tasked with implementing Niccol’s vision to go “back to Starbucks.” The strategy includes decreasing service times to four minutes per order, making its stores more welcoming, and reducing the number of menu items. SBUX stock has increased 9% over the past 12 months.
Is SBUX Stock a Buy?
Starbucks’ stock has a consensus Moderate Buy rating among 22 Wall Street analysts. That rating is based on 13 Buy, six Hold, and three Sell recommendations issued in the last three months. The average SBUX price target of $106.40 implies 7.03% upside from current levels.
