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

business people have a meeting about company statistics

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 chief stores officer and former Taco Bell executive Meredith Sandland as 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 the company's 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.

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

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

Niccol said he planned to split "Sara’s role in two" and that 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 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 by 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 in the same quarter a year ago. 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.

BrookeDiPalma

OK