Starbucks Appoints Chipotle's Brian Niccol as CEO Amid Activist Pressure; Shares Surge 10%

Aug 13, 2024, 12:13 PM

Starbucks has announced the appointment of Brian Niccol, the former CEO of Chipotle Mexican Grill, as its new Chairman and Chief Executive Officer, effective September 9, 2024. This leadership change comes as Starbucks faces pressure from activist investors and follows the immediate departure of Laxman Narasimhan, who had been CEO since September 2022. Narasimhan's exit is attributed to Starbucks experiencing two consecutive quarterly declines in revenue, a first since the pandemic in 2020. The announcement led to a significant market reaction, with Starbucks shares rising over 10% in pre-market trading, while Chipotle shares fell by approximately 10%. Niccol, who previously transformed Taco Bell and Chipotle, is expected to bring his expertise to revitalize Starbucks. Until Niccol assumes his role, Rachel Ruggeri, Starbucks' Chief Financial Officer, will serve as interim CEO. Mellody Hobson will become the lead independent director, and Howard Schultz has endorsed Niccol's appointment.