Howard Schultz is back at Starbucks (SBUX). Recently people were leaving the company for dead as their last CEO - Jim Donald - kept destroying its values. A sign of their despair was that they had never bought TV ads, until their same store sales kept going down for the first time in their history. Previously a leaked letter revealed how Schultz pleaded Donald not to forget Starbucks' roots.
On January 2008 David was "fired" and Schultz came back to replace him. The question is: Will Schultz be able to recover Starbucks' former glory?
McDonald's (MCD) had a similar story on 2002-2003. Their stock kept going down until Jim Cantalupo came back to the CEO post. He had retired on 2002, but he came back on 2003 as the company kept destroying its value. After his comeback McDonald's experienced an amazing recovery.
Will people come back to Starbucks now that Schultz is back?
On 2003 my question was if people would go back to eat junk food. They did thanks to Cantalupo. Will they go back to drink coffee thanks to Schultz?
Maybe a key difference is that's not the same going back to buy cheap food as going back to buy expensive coffee. Especially in the current crisis enviroment.
Wednesday, January 16, 2008
should people invest in the old new Starbucks?
Posted by
Fh
at
11:02 PM
Subscribe to:
Post Comments (Atom)

0 comments:
Post a Comment