Howard Schultz, who made Starbucks a global name, steps down as chairman

Starbucks Corp Executive Chairman Howard Schultz is stepping away from the coffee chain he built into a global powerhouse, putting management firmly into the hands of Chief Executive Kevin Johnson, who had an office connected to the co-founder's and regularly turned to Schultz in times of crisis.

Johnson faces a raft of challenges on the horizon. He is facing cooler growth in Starbucks' dominant U.S. market and intense competition from rivals - ranging from high-end coffee shops to more affordable fast-food chains - as the company undertakes a massive expansion project in China.

While Johnson, a former technology executive, can turn to new Starbucks Chairman Myron Ullman and his decades of retail experience, the news left some investors questioning how the iconic coffee brand will evolve after the June 26 departure of Schultz, who has been a near-constant presence for nearly four decades and crafted the company's inclusive culture.

"It removes a perceived leadership 'safety net' and creates a degree of uncertainty at a time when Starbucks faces a number of challenges," said BMO Capital Markets analyst Andrew Strelzik.