Coffee-chain Starbucks (SBUX) is shaking up its leadership after announcing that CFO Rachel Ruggeri will be leaving the company. Ruggeri is a 20-year veteran of Starbucks and will stay on for a short time in order to ensure a smooth transition. It is worth noting that her exit is the latest in a series of C-suite changes since CEO Brian Niccol took over the company in September.
Ruggeri will be replaced by Cathy Smith, who is a seasoned retail executive with CFO experience at Nordstrom (JWN), Target (TGT), and Walmart International (WMT). The leadership changes are part of Niccol’s efforts to revamp the company, which has so far included appointing new executives and launching a “Back to Starbucks” plan that is focused on core coffee products and customer experience.
The plan appears to be showing some signs of progress after Niccol reported a positive response from customers across all age groups. However, the company’s latest quarterly results were mixed, with flat revenue and a decline in earnings per share. Same-store sales and foot traffic also declined globally, although average ticket size grew.
Is Starbucks a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 15 Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 27% rally in its share price over the past year, the average SBUX price target of $111.20 per share implies 2% downside risk.
