Business News
Starbucks founder Schultz returns to daily grind
Jan 8, 2008, 1:05 GMT
Seattle, Washington - The world's largest coffee-shop chain, Starbucks Corp, announced Monday that founder and Chairman Howard Schultz would retake the reins of the company.
Chief executive Jim Donald is quitting after nearly three years, Starbucks announced in a statement issued late Monday after the close of trading on the New York Stock Exchange.
The management shakeup comes with the Starbucks share price down sharply, including a 42-per-cent drop during 2007.
Schultz previously held the chief executive portfolio from 1987 to 2000.
The firm, which enjoyed years of galloping expansion worldwide, is planning to begin closing underperforming stores and slowing its growth into new locations.
After helping to spur the US market for premium coffee, Starbucks is now facing rising competition from other retailers including McDonald's.
Starbucks has 14,000 coffee houses in 43 countries, including 2,571 shops opened in 2007 alone. Its growth is now faster outside the United States.
© 2008 dpa - Deutsche Presse-AgenturCOMMENT
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