martinrlee
Starbucks Corporation (NASDAQ:SBUX) is being evaluated by investors and analysts after announcing a new organizational structure that includes new leadership for North America and international businesses.
TD Cowen analyst Andrew Charles sees the new organizational structure as a modest positive for the company as it gives two +10 year Starbucks veterans more oversight. The top management’s moves are also believed to help ensure that Starbucks (SEX) will reach its goal of 55,000 Starbucks locations worldwide by 2030.
Specifically, Starbucks (SBUX) announced the promotion of Michael Conway to CEO, North America after serving as Group President, International and Channel Development for approximately three years. Additionally, Brady Brewer was promoted to CEO of Starbucks International after serving as Chief Marketing Office for four years.
“In our view, the new roles involve increased oversight of the company by two proven Starbucks executives,” Charles noted. “Although Conway has had a predominantly international focus in recent years, we are optimistic that he will bring new energy to improve U.S. performance,” he added. Charles also noted that while Brewer has focused on the US in his most recent role, he has also held historic roles in China, Japan and the Asia Pacific region which he should be able to leverage to the company’s headquartered advantage in Seattle. Meanwhile, Starbucks (SBUX) will continue to implement a co-CEO model for the important China business. Both Chinese co-CEOs will report to overall company CEO Laxman Narasimhan.
Starbucks (SBUX) shares are down 5.2% year-over-year.