Starbucks replaces CEO Laxman Narasimhan with Chipotle CEO Brian Niccol

From CNBC: 2024-08-13 09:14:49

Starbucks replaces CEO Laxman Narasimhan with Chipotle CEO Brian Niccol amid sales slump. Starbucks shares rose 15%, while Chipotle’s fell 8% in premarket trading. Narasimhan’s departure effective immediately. Starbucks CFO will be interim chief until Niccol officially takes over on Sept. 9. Starbucks reported a 3% decline in same-store sales. Howard Schultz handpicked Narasimhan as his successor.

Niccol, who led Chipotle through a rebound post-foodborne illness scandal, will be the new CEO of Starbucks. Chipotle’s stock soared 773% during his tenure. Starbucks chair Mellody Hobson acknowledged the board’s decision to replace Narasimhan was made months ago. Niccol has extensive experience in fast-food industry, known for successful turnarounds.

One of Chipotle’s strengths has been its app, aiding in strong performance. Starbucks’ app, in contrast, has been criticized for slowing down service due to a glut in mobile orders. Starbucks’ board shakeup indicates lack of interest in deal with activist investors. Elliott Management met with Starbucks last week to discuss a possible settlement offer.

This is breaking news. Stay tuned for updates as the story develops.



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