Starbucks is ubiquitous in the U.S. today -- especially in New York where you can find a store on nearly every street corner. Yet its success still seems to be understated.
Schultz became CEO in 1987 and oversaw Starbucks' massive first wave of growth -- including taking the company public -- until he "retired" in 2000 to become chairman and "chief global strategist."During that first wave of growth under Schultz's leadership, Starbucks went from 17 stores to 3,501. The stock price rose 800%, from today's equivalent of 67 cents to $6. Between 2000 and 2008, Starbucks went through two CEOs: Orin Smith and Jim Donald. 10 Dow Dogs That Are Barking for Gains The company's growth continued unabated over that period, from 3,501 stores to 16,680. And its shares grew by 232%, far in excess of the market's growth. But Starbucks saw its stock top out at $40 in 2006, and shares finished 2007 closer to $20. There was a feeling that Starbucks had overexpanded and lost its soul. Schultz took back the reins on Jan. 8, 2008. At the time, he was only 54. When he returned, Schultz communicated that his plan was to slow U.S. growth, close underperforming stores, restructure the management structure and step on the gas in terms of international growth. He followed through on that pledge. In 2009, the number of Starbucks stores dropped by 250. As of today, the store count is 17,244 -- its highest ever. Since then, Schultz has revamped the drink and food lineup, launched the Via "instant coffee" brand, launched the sale of K-Cups in-store, expanded grocer distribution of coffee, and greatly expanded international business. Just a few days ago, the company said China would be its largest international market by 2014. If you think that Schultz just got lucky by being CEO during good times, think again. The stock is now at all-time highs near $57, representing a market cap of $43 billion. 7 Companies That Keep on Growing Since Schultz took over again, Starbucks' stock is up 213% vs. a return for the Dow Jones Industrial Average of 3.6%. It's remarkable outperformance for a mature chain.
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