This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Schultz Back as Starbucks CEO

Updated from 5:11 p.m. EST

SAN FRANCISCO -- Starbucks (SBUX - Get Report) is hoping to return to its glory days by bringing back the man who created the company and brewed it to success.

Howard Schultz will add to his current position as chairman to also become chief executive of the java giant, replacing Jim Donald, who is leaving the company.

Schultz had served as CEO from 1987 to 2000, helping to grow the company from a humble chain of 100 coffee shops to about 15,000 stores today.

Schultz Facelift May Reheat Starbucks

But with more stores came shrinking demand, especially with increased competition from McDonald's (MCD - Get Report) and Dunkin' Donuts.

And now overexpansion is the central focus of Starbucks' problems.

As CEO, Schultz said he plans to reform the chain by scaling back the number of new locations in the U.S. while shuttering underperforming stores.

"Just as we created this problem, we will fix it," he said in a conference call with analysts after the closing bell on Monday.

At the same time, Schultz said he will push ahead with international expansion, shifting capital from domestic growth and putting it where he sees greater potential.

Shares for Starbucks were jumping 9%, or $1.66, to $20.04 in after-hours trading.

The coffee chain behemoth has been struggling with a slowing economy that has hurt many other retailers, as well as higher commodities prices, which Starbucks has offset by hiking prices on its beverages.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MCD $114.23 0.00%
SBUX $62.18 0.00%
AAPL $117.81 0.00%
FB $105.45 0.00%
GOOG $750.26 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs