After years of denying McDonalds (MCD) and Dunkin Donuts were the competition, Starbucks, (SBUX) in an SEC filing finally admitted they were.
The Seattle Times Reports:
“Starbucks’ former chief executive, Jim Donald, agreed not to work for McDonald’s or Dunkin’ Donuts as part of a noncompetition agreement he signed after being pushed out of the coffee company in January.
He can work for a grocery chain and other fast-food chains, including Wendy’s and Burger King, according to a securities filing by Starbucks today. But McDonald’s and Dunkin’ Donuts “directly compete with Starbucks field of business.”
In return for signing the noncompetition and confidentiality agreements, Donald will receive $1.25 million this year, an amount that Starbucks made public in January.”
He also has to be nice and not say bad things about Starbucks.
This is stunning. First you have CEO Howard Schultz denying the above companies are the competition, Donald himself denied it when he was CEO and now the finally admit it in an SEC filing. For how long have I been saying they just are not honest with shareholders?
I guess this is the question that needs to be asked. What makes Starbucks think either McDonalds or Dunkin would even want him? I mean really. They spent two years kicking him in the teeth to the point they got him fired, now they want him? Why?
This just goes to show the arrogance in Seattle. To actually think either company would be beating down his door just because he was their CEO is absurd. If anything, folks in Seattle ought to be trying to poach the management ranks of MCD or Dunkin.
Since they have officially put it in writing, we can now stop the “competition” games and just perhaps folks in Seattle can actually get down to improving the customer experience rather than just preaching it?
Alas, seeing as how this was slipped in the filing rather than just disclosed, it sadly appears to be more of the same.
Pathetic……….
Disclosure (“none” means no position): Long MCD, None
