Cathy Smith is Starbucks’ new chief financial officer (CFO). Since Brian Niccol took over as CEO of the company on September 9, 2024, the company has experienced a series of changes in its executive team. Niccol, known for his role as CEO at Taco Bell, has implemented a restructuring strategy with the aim of strengthening the brand and improving its financial performance.
His strategy, “Back to Starbucks,” focuses on the company’s core products, enhancing service efficiency, and adjusting prices to navigate a complex economic landscape. As part of this plan, the company has made new appointments to its leadership team, bringing in key figures from the retail and food industry.
Who is Cathy Smith, the new CFO of Starbucks?
One of the most recent and significant changes is the departure of Rachel Ruggeri, who served as Chief Financial Officer (CFO) of Starbucks for nearly 20 years. In her place, the company has appointed Cathy Smith, an experienced executive with an extensive background in the retail sector. Smith has held the same position at Nordstrom since 2023 and previously served as CFO at Target and Walmart International.
Cathy Smith will be based at Starbucks’ headquarters in Seattle, the same city where Nordstrom’s main offices are located. Her arrival reinforces Niccol’s commitment to assembling an executive team with experience in major retail corporations, with the goal of optimizing Starbucks’ financial operations during this restructuring period.
With the announcement of Rachel Ruggeri’s departure and Cathy Smith’s arrival, Brian Niccol sent an internal message to Starbucks employees, thanking Ruggeri for her contributions to the company and welcoming the new CFO. In his statement, Niccol emphasized that “Rachel has led with integrity and has always placed customers and partners at the center.”
He also noted that her experience was crucial during Starbucks’ most challenging times and that her legacy will remain part of the company’s culture. Regarding Cathy Smith, Niccol highlighted that “she has exceptional knowledge in retail, global operations, and recovery strategies.”
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Changes at Starbucks in the Brian Niccol era
Ruggeri’s departure is not the only modification Starbucks has recently implemented. As part of its leadership team redesign, the company has also brought in other former Taco Bell executives, reflecting Brian Niccol’s influence in the reorganization.
Notable appointments include:
- Mike Grams as Chief Stores Officer, following a long career at Taco Bell.
- Meredith Sandland as Chief Store Development Officer. Before joining Starbucks, Sandland was CEO of Empower Delivery, a food delivery service company.
- Tressie Lieberman, who was appointed Global Chief Brand Officer last fall.
These changes have also led to the departure of several long-time Starbucks executives. Among them, Sara Trilling, who was President of Starbucks North America, and Arthur Valdez, who held the position of Chief Supply and Customer Solutions Officer.
How has Starbucks’ restructuring impacted the company?
Brian Niccol’s “Back to Starbucks” plan has received mixed reactions from investors and customers. In the company’s first-quarter 2025 earnings report, Niccol stated that “the results met our expectations and show signs of progress, but there is still much work to be done.”
Financial data revealed that Starbucks’ revenue remained at $9.4 billion, in line with analysts’ estimates. However, earnings per share fell by 23% compared to the previous year, settling at $0.69, although it exceeded the forecast of $0.66. According to the company, this decline is due to “elevated investments” to support Niccol’s transformation plan.
In terms of sales, Starbucks reported a 4% drop in global comparable store sales and a 6% decline in customer traffic. In North America, sales fell by 4%, while traffic decreased by 8%, with a slight 4% increase in average ticket size.
