Starbucks (SBUX) Loses “Founder Premium”
Sack the CEO and bring back the founder. The market likes it. And, it worked at Starbucks (SBUX) for all of four days. The shares have fallen as low as $18.92 in today’s trading. The shares should not have moved…
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Sack the CEO and bring back the founder. The market likes it. And, it worked at Starbucks (SBUX) for all of four days. The shares have fallen as low as $18.92 in today’s trading.
The shares should not have moved up in the first place. Howard Schultz may be the best person to run the coffee chain, but the problems of a tarnished image and too many stores in the US may take a year or more to solve.
Schultz will have to contend with high milk prices and the fact that a recession will even hurt people with enough money to spend $4 on a cup of coffee.
Starbucks made the right move changing management, but it may not be reflected before 2009.
Douglas A. McIntyre
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.