Starbucks CEO Brian Niccol is making changes in his leadership team as he implements his “Back to Starbucks” plan. CFO Rachel Ruggeri, who has been with the company for 20 years, announced her departure in a letter to employees. She will remain on board for the near term to assist with the transition.
Cathy Smith, a retail veteran, has taken over as the new CFO and will report directly to Niccol at the Seattle headquarters. This move comes just weeks after Niccol took the helm on September 9th, succeeding Laxman Narasimhan.
The changes mark the latest in a series of executive departures under Niccol’s leadership. Earlier this year, Mike Grams was named chief stores officer and Meredith Sandland became chief store development officer. Sandland had previously served as CEO of delivery meal company Empower Delivery.
Despite facing challenges, including revenue flatlines and declining sales, Niccol expressed optimism about his plan in the latest quarter results. The “Back to Starbucks” strategy focuses on core coffee products, better pricing, and faster service, with a positive response across all ages seen in early tests. However, earnings per share dropped 23% year over year.
The company reported global same-store sales and foot traffic declined by 4% and 6%, respectively, but average ticket size grew 3%. The performance has raised concerns about Niccol’s turnaround plan, with “heightened investments” cited as a reason for the decline.
Source: https://finance.yahoo.com/news/starbucks-cfo-rachel-ruggeri-leaves-as-the-chain-continues-to-attempt-a-turnaround-143112935.html