Starbucks has announced a significant leadership change as Chipotle CEO Brian Niccol will take over as the new Chief Executive Officer, replacing Laxman Narasimhan. The coffee giant aims to revitalize its business after experiencing a decline in sales, particularly in key markets like the U.S. and China.
Niccol, who successfully led Chipotle through a period of growth, will officially step into his new role on September 9th. Until then, Starbucks CFO Rachel Ruggeri will serve as interim CEO. The leadership change has already had a positive impact on Starbucks’ stock, which surged by over 20% following the news. Meanwhile, Chipotle’s stock saw a 10% decline as investors reacted to Niccol’s departure.
Under Narasimhan, who took the reins in March 2023, Starbucks faced challenges, including declining same-store sales and pressure from activist investors. The board’s decision to bring in Niccol, known for his strong track record at both Chipotle and Taco Bell, reflects a strategic move to steer Starbucks toward renewed growth and stability.
