Starbucks Stocks Value Falls as Chairman Resigns

After striving for four decades to bring a small coffee shop becomes a worldwide franchise, Howard Schultz, Executive Chairman of Starbucks Corp., announced his resignation from the company by the end of the month.

Schultz was proven to be a successful leader as Starbucks develops from 11 to more than 28.000 stores in 77 countries. His position in Starbucks Corp. will expire in June 26 according to company management and will be replaced by Myron Ullman, former CEO of JCPenney with Mellody Hobson as vice chairman.

Due to Schultz's resignation from Starbucks Corp., investors are concerned about the company's future. Bill Smead, chief executive officer of Smead Capital Management, which owns 346,113 shares of Starbucks, states that Starbucks has the biggest challenge to figure out how to take care of the customer better. He also questioned about how Starbucks delivers the product to people in a way that they are not considering the rising prices of the product.