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Starbucks Names New COO, Paving the Way for Mobile Payment Giant

Strategic Insights

— 2 min read

Starbucks has announced the hiring of Kevin Johnson, a former CEO of Juniper Networks and a veteran of Microsoft and IBM, as its new Chief Operating Officer. This move signals the company's seriousness about becoming a major player in the mobile payment industry, competing with the likes of Apple, PayPal, and Google. Johnson's expertise in mobile and digital technologies has been praised by CEO Howard Schultz, who also emphasized that Johnson's addition is not part of an unannounced succession arrangement. However, the timing of Johnson's appointment, following the announcement of Troy Alstead's leave of absence, has sparked speculation about his potential future role at the company.

Key Takeaways:

  • Kevin Johnson, a former CEO of Juniper Networks and a veteran of Microsoft and IBM, has been appointed as Starbucks' new Chief Operating Officer.
  • Johnson's expertise in mobile and digital technologies is expected to help Starbucks compete with major players in the mobile payment industry.
  • The hiring of Johnson may potentially pave the way for him to become the CEO of Starbucks in the future.
  • The company has been expanding its mobile payment capabilities, and Johnson's appointment is seen as a step towards achieving this goal.
  • Starbucks reported a 13% increase in sales and an 82% surge in earnings during its latest quarter, leading to a 6% surge in shares to an all-time high.
  • The company's focus on mobile and digital technologies, led by Johnson, is expected to drive future growth and success.
  • Howard Schultz has emphasized that Johnson's addition is not part of an unannounced succession arrangement, but the timing of the appointment has sparked speculation about Johnson's potential future role.

Statistics:

  • 34: The number of times the word "mobile" was mentioned during the conference call, identical to the number of references for the word "coffee."
  • 13%: The increase in sales reported by Starbucks during its latest quarter.
  • 82%: The surge in earnings reported by Starbucks during its latest quarter.
  • 6%: The surge in shares of Starbucks to an all-time high after the company reported its quarterly results.

Sources:

  • "Starbucks wants you to think of it as a technology company, not a coffee retailer." - CNNMoney
  • "Starbucks hired Kevin Johnson, the former CEO of Juniper Networks and a veteran of Microsoft and IBM, to be its new chief operating officer" - CNNMoney
  • "Shares surged 6% Friday to an all-time high after the company reported a 13% increase in sales and an 82% surge in earnings during its latest quarter." - CNNMoney
  • "In fact, the word 'mobile' was mentioned 34 times during the conference call -- identical to the number of references for the word 'coffee.'" - CNNMoney

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