Investors who follow Starbucks (NASDAQ:SBUX) closely probably knew the company was set to have a new chief executive this year. However, they may be surprised to learn that Starbucks officially welcomed its new CEO today. This transition is happening earlier than anticipated, although SBUX stock investors don’t seem to be too bothered.
Last year, when Howard Schultz was the interim CEO, the company was going through a difficult period. Starbucks was dealing with sticky inflation, unionization efforts and other issues.
Perhaps Starbucks named Laxman Narasimhan as its new CEO early in an effort to start a new chapter. The original plan was to have Schultz stay on board as interim CEO until April 1, 2023, when Narasimhan would take over the role. Narasimhan was also to join Starbucks’ Board of Directors on that day.
However, the company just announced that Schultz is stepping down now. Furthermore, Narasimhan is officially taking on the CEO position and joining the board today.
What’s Happening With SBUX Stock?
So far, Starbucks’ investors seem to be taking this unexpected announcement in stride. As of this writing, SBUX stock is up 1% and staying fairly close to the $100 level.
Sometimes, surprising announcements prompt selloffs in stocks. Starbucks investors are evidently staying calm today, though. This may be a sign that shareholders are confident in Narasimhan’s ability to lead the company.
In a related development, Starbucks disclosed that Narasimhan will lead Starbucks’ annual shareholder meeting, which is scheduled to take place this Thursday, March 23. Clearly, the new CEO is ready and eager to take the helm.
Thus, the upcoming shareholder meeting will probably be watched closely by stakeholders. They will surely want to hear what the new chief executive has in store.
It will be interesting to see where SBUX stock goes during Narasimhan’s time as CEO. For better or for worse, this could mark a new, eventful era in the history of the coffee company.
On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.