Updated from 5:11 p.m. EST
SAN FRANCISCO --
(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
(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.