Starbucks (NASDAQ: SBUX) revealed Thursday that Rachel Ruggeri, senior vice president of finance for the Americas division, will become Chief Financial Officer after the current CFO, Pat Grismer, retires on February 1. Additionally, the company showcased its 2021 forecast. Grismer is set stay with the company as an advisor to Chief Executive Kevin Johnson and Ms. Ruggeri until approximately May 2.
“It gives me great confidence to know that Rachel, a long-time Starbucks colleague and a seasoned financial executive, is stepping into this role,” Mr. Johnson said.
A restaurant industry analyst at Robert W. Baird & Co., David Tarantino, expressed his disappointment regarding Mr. Grismer’s leave, however he believes Ms. Ruggeri will fill the role wonderfully.
“We are surprised by the fairly sudden nature of this transition,” Mr. Tarantino wrote in an analyst note.
The coffee franchise reaffirmed its guidance for both the current quarter and the 2021 fiscal year. Its previous earnings per share forecast was between USD2.34 to USD2.54.
Ruggeri is anticipated to aid the company in building itself back up and paying for new expenses, which include growing staff compensation. Starbucks has experienced a plummet in sales amid the ongoing coronavirus pandemic that has led to restrictions and remote work.
Starbucks has a market value of USD122 Billion and its stock has grown 18% within the last year.