Starbucks shares (SBUX), rose more than 7 percent Wednesday after Howard Schultz, the coffee giant, announced that he would be returning to the company as interim chief executive.
Schultz will succeed Kevin Johnson, a former tech executive who was appointed Starbucks CEO (from Schultz). Schultz will be his third time leading Starbucks. From 1987 to 2000, he was the CEO. In 2008, at the peak of the Great Recession, he was again the CEO. This was at a time many investors believed that the company was losing its way because it had been overexpanded.
Schultz will have to deal with many other challenges, including increased pressure from some Starbucks workers to unionize. As interest rates rise and oil prices go up, there are concerns about consumers being tapped out. Despite Wednesday’s rally Starbucks stock is down almost 25% this year.