Starbucks has announced a significant leadership change, with Chipotle CEO Brian Niccol set to replace Laxman Narasimhan as the new CEO. Narasimhan, who had taken over the role just a year ago, is stepping down immediately.
Key Details
- New Leadership at Starbucks: Brian Niccol, the current CEO of Chipotle Mexican Grill, will officially begin his new role at Starbucks on September 9. Until then, Starbucks CFO Rachel Ruggeri will serve as the interim CEO.
- Narasimhan’s Departure: Laxman Narasimhan, who became Starbucks CEO in September 2022, has resigned from his position and will no longer be a member of the Starbucks board. This sudden leadership change follows Narasimhan’s succession of Howard Schultz, the long-time Starbucks leader who had returned temporarily to guide the company.
- Stock Market Reaction: The news of this leadership transition had an immediate impact on the stock market. Starbucks shares surged by 12% in premarket trading, while Chipotle’s shares fell by 10%.
Activist Investors and Strategic Shifts
- Investor Influence: Reports suggest that activist investors, including Elliott Investment Management and Starboard Value, have recently acquired stakes in Starbucks. This may have influenced the leadership change. Starbucks was reportedly in discussions with Elliott to add Jesse Cohn, a managing partner at the firm, to its board. The company is also considering forming committees to focus on capital allocation and operational improvements.
- Chipotle’s Interim CEO: In response to Niccol’s departure, Chipotle’s board has appointed Scott Boatwright, the company’s chief operating officer, as interim CEO.
TOPICS:
Starbucks