Company CEO Orin Smith, 62, plans to retire next year and will be replaced by Jim Donald, the president of the company's North American operations. Additionally, the company is promoting Jim Alling, its executive vice president of U.S. business operations, to president of the company's U.S. business.
"It is with both deep admiration and gratitude that we accept Orin's decision to retire," said Starbucks Chairman Howard Schultz in a statement. "Jim
Donald's promotion in March ... demonstrates the strength and depth of the senior leadership team."
Smith's retirement and Donald's promotion will be effective March 31. Alling's promotion is effective immediately.
Smith has served as Starbucks president and CEO since June 2000. Previously, he served as the company's chief operating officer, and before that as its chief financial officer. He joined Starbucks in 1990.
The company did not immediately say if Smith will also give up his seat on its board, where he has served since 1996.
"I am honored to have been part of this journey, proud of what we have accomplished, and excited about the opportunities that lie ahead," Smith said in the statement. The company did not elaborate on what Smith would do next.
Donald has been with the coffee chain since 2002. He previously served as chairman and CEO of supermarket chain
, and as an executive at
Meanwhile, Alling joined Starbucks in 1997, and has overseen the company's grocery business and specialty sales at various times since then.
The announcement came after the bell on Tuesday. In after-hours trading, Starbucks shares were off 78 cents, or 1.6%, to $47.26. Earlier in the day, the company's stock closed regular trading up 23 cents, or 0.5%, to $48.04.