Diedrich Coffee Chief Steps Down
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J. Michael Jenkins, who helped shore up Diedrich Coffee Inc.’s sagging bottom line, has resigned as chief executive to concentrate on his treatment for gastric cancer, the Irvine company said Wednesday.
Jenkins, who publicly announced his illness in August, will serve as an advisor to the company. Philip G. Hirsch, who recently served as president of CUE Digital Radio Corp. after a 16-year career at PricewaterhouseCoopers, has been named interim CEO.
In his 18 months at Diedrich, Jenkins put the brakes on a costly expansion plan, cut labor and other costs, and helped boost the company’s more-lucrative wholesale coffee business.
Hirsch said he plans to serve three to four months in the position, expanding the wholesale operations as well as adding new franchise coffeehouses.
In the quarter ended Dec. 12, Diedrich earned $1.3 million, or 26 cents a share, versus $164,000, or 5 cents a share, a year earlier. Revenue declined by nearly 18% to $16 million, reflecting the closure of under-performing stores. Sales at stores open more than a year, a key industry barometer, were off 5.2%, however.
Jenkins’ resignation was announced after regular U.S. trading hours.
The stock fell 3 cents to close at $3.50 on Nasdaq.
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