Starbucks’ (NASDAQ:SBUX) CEO change was hardly a closely-held secret. Most knew that Howard Schultz was poised for departure and that Laxman Narasimhan was set to take over soon. Soon, however, ultimately came about two weeks ahead of schedule. Nonetheless, the move did not faze investors, who sent Starbucks up slightly in Monday afternoon’s trading.
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The move to bring Narasimhan in had been set since September 2022. That started a six-month journey insiders call an “immersion experience” to get him properly brought up to speed on how Starbucks actually works. This is probably for the best, as Starbucks is not what it was just a few months ago. Labor unrest, new renovations, and an uncertain global economy are all bringing change to Starbucks.
Yet apparently, Narasimhan skipped the last couple weeks of the immersion and took the position formally. He’ll be leading the annual shareholder’s meeting this Thursday. Narasimhan will have big shoes to fill, as Starbucks is up around 8% under Schultz’s newest tenure.
Wall Street, meanwhile, doesn’t seem to have much problem with Narasimhan’s sped-up timetable. Analyst consensus currently calls Starbucks stock a Moderate Buy, almost evenly split between Buy and Hold recommendations. Meanwhile, Starbucks stock offers 15.2% upside potential thanks to its average price target of $114.68.
