Brian Niccol appointed new CEO of Starbucks, investors optimistic about his ability to rejuvenate company.

From CNBC: 2024-08-13 16:41:04

Starbucks appointed Chipotle CEO Brian Niccol as its new chief executive and chair, hoping he can revive the chain after recent sales declines. Wall Street analysts view Niccol’s appointment as a crucial step towards a new era for Starbucks, with shares climbing 20% on the news. Niccol’s experience leading Chipotle has investors confident in his ability to rejuvenate demand for Starbucks coffee.

Niccol’s hiring may signal the end of Howard Schultz’s influence on Starbucks, after multiple stints as CEO from 1986 to 2000, 2008 to 2017, and 2022 to 2023. Schultz’s involvement in Starbucks as a shareholder and influential figure has been a lingering issue for analysts, but Niccol’s leadership may finally mark a new chapter for the company.

Despite investors’ optimism, some analysts caution that running Starbucks is a more complex challenge than leading Chipotle. Starbucks has a significant international presence and faces challenges in markets like China, which Niccol will need to navigate. His success in reinvigorating Starbucks will depend on his ability to understand the complexities of the larger coffee chain compared to his previous work at Chipotle.



Read more at CNBC: Wall Street cheers Brian Niccol appointment