Starbucks' (SBUX) Laxman Narasimhan is officially CEO of the Seattle-based coffee giant.
On Monday, founder and interim CEO Howard Schultz stepped down for the third time, though he will continue to be a member of the Starbucks' board of directors. In September, Starbucks named Laxman Narasimhan as incoming CEO. He joined the company October 1 with plans to officially begin his role and join the Starbucks' Board of Directors on April 1, 2023, making this announcement earlier than initially planned.
Narasimhan will lead the annual shareholders meeting this Thursday. The company noted that for the last five months, he's travelled to more than 30 stores, as well as manufacturing plants and support centers around the world.
This "intensive immersion into the business coupled with his extensive experience as a proven brand builder, innovator and operator have uniquely prepared him to lead Starbucks into its next phase of growth," Mellody Hobson, independent Starbucks board of directors chair, said in a press release.
Narasimhan formerly served as the CEO of Lysol-maker Reckitt Benckiser, at which he was credited with boosting sales of health and hygiene products at the British household goods maker during the pandemic as well as leading the company through the baby formula crisis in the U.S. Prior to that, he held various roles, including global chief commercial officer at PepsiCo, where he oversaw the company's long-term strategy and digital capabilities.
Along with this transition, it's a busy few weeks for the coffee giant. On Thursday the company plans to hold its annual meeting virtually.
And on Wednesday, March 29, Schultz is scheduled to testify before the Senate HELP (Health, Education, Labor, and Pensions) Committee in response to accusations that Starbucks has not allowed its workers to "organize unions," nor engaged "in collective bargaining to improve their wages and working conditions," according to a statement from Vermont Senator Bernie Sanders.
It's been nearly one year since Schultz returned to the helm as interim CEO on April 4, 2022, following the announced retirement of CEO Kevin Johnson, who held the position for five years.
From the Q2 of FY22 earnings call through the Q1 FY23 earnings call, the company's stock price saw a roughly 47% increase and market cap growth of approximately $40 billion, per the company.
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Brooke DiPalma is a reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at [email protected].
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