Monday's announcement that Howard Schultz is leaving Starbucks (SBUX) has important political and company-wide ramifications.

From a business standpoint, Starbucks faces continued operating margin degradation and a maturing domestic store base. For some time I have felt that these factors would contribute to disappointing EPS results - and that has proven to be the case.

The loss of Schultz's management expertise (he already once turned the company around) is a negative for the company (and represents a further risk to the company's ability to execute through its challenges and headwinds) and I remain short Starbucks.

Starbucks profit margins: 3-year look $SBUX pic.twitter.com/SQ7EltyRMS

— Brian Sozzi (@BrianSozzi) June 4, 2018

I initially placed Starbucks on my Best Ideas List (short) in January, 2016 at $60.60. (Starbucks closed at $57.07 yesterday).

As to Howard Schultz, a potential political candidate - he has been a catalyst for social change in his role at Starbucks and away from the company.

Schultz's family foundation has been committed to the support of two successful programs: Onward Youth (aimed at promoting employment for young people between the ages of 16 and 24 who are not in school and not working) and Onward Veterans (which support post 9/11 military to successfully transition into civilian life).

For over two years I have suggested that Schultz would be among the leading candidates for the Democratic presidential nomination in 2020.

I still believe this to be the case.

And if this sounds like a personal endorsement... it is.

Read more of Doug Kass on Real Money Pro here.

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