CEO change at Starbucks

Investment Analysis Clubs Macro Economic Trends and Risks
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It is too late for Starbucks. Their pricing is downright hostile. The company wants only App customers. The store remodels are crap for business.

Now most people have tried the local coffee brewers.

NYT Dealbook column by Andrew Ross Sorkin

Starbucks makes a change at the top

This just in: Laxman Narasimhan is out as the C.E.O. of Starbucks, the company announced this morning, a year and a half since he succeeded Howard Schultz at the coffee chain.

Narasimhan will be replaced by Brian Niccol, a fast-food industry veteran who executed a turnaround as C.E.O. of Chipotle. The 50-year-old executive will also assume the role of chairman at Starbucks.

Further…

The struggles at Starbucks have attracted the attention of Elliott Management and Starboard Value. The hedge funds have purchased big stakes in the company and had been pushing for changes, including getting board seats.

Note at one time my family was married into the Elliots. Nutty family.

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If people treat you like a god, just because you are rich, after a while, you think you are a god.

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When those guys come to town your company can go to crap in a hurry. They either want to juice the stock price or rip up the company. Trying to juice the stock price is how Starbucks got in this mess in the first place.

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Yep the pricing is downright hostile.