Starbucks stirs up more changes as new CEO remakes the executive ranks

Starbucks’ (SBUX) is brewing up Taco Bell (YUM) vibes under CEO Brian Niccol.

On Tuesday morning, Starbucks named longtime Taco Bell executive Mike Grams as EVP, chief stores officer, and former Taco Bell executive Meredith Sandland as EVP, chief store development officer. Most recently, Sandland served as CEO of delivery meal company Empower Delivery.

Both executives will relocate to Seattle and begin in February. They’ll be playing a role in Niccol’s “Back to Starbucks” plan. The new operating model for its retail team needs “clear ownership and accountability and an appropriate scope for each role,” Niccol wrote in a letter to employees on Tuesday, viewed by Yahoo Finance.

Per Starbucks, Grams will be responsible for its retail teams and store performance. The customer solutions group will move to his team.

Sandland will be responsible for store development strategy and store design, “all intended to deliver the community coffeehouses our customers and partners expect,” per Niccol.

Sara Trilling, who served as EVP and president of Starbucks North America is leaving the company. She oversaw growth plans and the rollout of the Siren retail system, and supported employees across the US and Canada.

Niccol said he planned to split “Sara’s role in two,” and she believed “neither new role was right for her.” She said the plan was “the right decision for the company.”

Arthur Valdez, who served as EVP and chief supply and customer solutions officer, is also stepping down. The company plans to announce a successor in the coming weeks.

Niccol said “Arthur agrees that integrating the customer solutions team with the stores team is the right approach.”

Valdez joined Starbucks two years ago, after a long stint at Target (TGT

Both Trilling and Valdez will stay to “assist with the transition” over the next few months. Niccol ended the letter saying, “I understand this is a lot of change.”

The coffee giant is expected to post its first quarter fiscal year 2025 results on Tuesday after market close. This will be the first full quarter under CEO Brian Niccol, who took the helm on Sept. 9.

Wall Street expects revenue to come in at $9.32 billion, compared to $9.43 billion from the year-ago quarter. Same-store sales and foot traffic are projected to decline 5.30% and 7.28%, respectively, year over year.

Analysts expect a slight improvement in foot traffic from a quarter ago, offset by lower ticket growth.

In the past year, Starbucks stock has gained 5%, far lagging the S&P 500’s (^GSPC) 24% rise. But the shares have risen 32% in the past six months after Niccol was announced as the new CEO in August.

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