Seattle-based coffee chain Starbucks has tapped Chipotle’s CEO, Brian Niccol, to lead the coffee giant amid pressure from activist investors and declining sales in the U.S. and China.
Laxman Narasimhan is departing from his role immediately, the company revealed in a statement. The embattled coffee retailer has appointed Chipotle’s CEO and corporate turnaround expert, Brian Niccol, as its new chairman and chief executive officer, effective September 9.
Who is Brian Niccol?
Niccol, who will be Starbucks’ fourth CEO in just two years, has served as CEO of Chipotle since 2018, leading a remarkable turnaround for the burrito chain. Prior to Chipotle, he held the CEO role at Taco Bell and had previously worked at Pizza Hut and Procter & Gamble. Niccol also serves on the boards of Walmart, KB Home, and Harley-Davidson, and holds an MBA from the University of Chicago Booth School of Business.
How did Niccol revitalize Chipotle Mexican Grill?Â
During Niccol’s tenure, Chipotle’s sales doubled to around $10 billion in fiscal 2023, while the company’s stock has more than tripled in value over the last five years. He was also responsible for turning around Chipotle’s reputation after a series of food safety lapses in 2018, with steps such as re-training restaurant employees on safety and wellness protocols.
Read more: Starbucks endorsement of NFT is a big win for Web3
How did the market react to this?Â
Analysts are viewing Niccol’s move to Starbucks as a “significant victory” for the coffee giant. Niccol is said to have earned the respect and confidence of the investment community and will be given the much-needed leeway to make investments and turn around Starbucks. The news sparked a surge in Starbucks’ share price, with the stock jumping 25 percent and adding $21.4 billion in market capitalization. On the other hand, Chipotle shares slid 7.5 percent on the announcement, representing a $5.7 billion drop in the company’s market value.
For more miscellaneous news, click here.
