Starbucks has named Chipotle Mexican Grill Chief Executive Officer Brian Niccol because the coffee chain's latest CEO and chairman, replacing Laxman Narasimhan, who had served within the role for just over a 12 months.
Chief Financial Officer Rachel Ruggeri will function interim CEO until Niccol begins his latest role on Sept. 9, the corporate said in an announcement. Mellody Hobson, Starbucks' chief executive officer, will turn out to be lead independent director. Narasimhan can even step down from his seat on the board.
Starbucks shares rose greater than 13% before the market opened.
Nicholas, previously at Taco Bell in Irvinebrought Chipotle's headquarters in Newport Beach from Denver, just months after being named head of the fast-food chain.
Narasimhan, a longtime PepsiCo executive who also served as CEO of Reckitt, a British consumer health company, became CEO of Starbucks in March 2023. He succeeds Howard Schultz, Starbucks' longtime leader and chairman emeritus, who returned from retirement in 2022 to function the corporate's interim CEO.
But investors quickly became offended with Narasimhan as the corporate's sales declined and it struggled with quite a few problems, including competition from low-cost suppliers in China and Boycotts within the Middle East and elsewhere on account of perceived support for Israel.
Mellody Hobson, chair of Starbucks' board of directors, said Niccol has transformed Chipotle since taking up as CEO in 2018 by specializing in menu innovation, operational excellence and digital transformation.
“Brian is a culture leader who brings a wealth of experience and a proven track record of driving innovation and growth,” Hobson said in an announcement. “Like all of us at Starbucks, he understands that a remarkable customer experience is built on an exceptional partner experience.”
Schultz said he has long admired Niccol.
“I believe he is the leader Starbucks needs at a pivotal moment in its history. He has my respect and full support,” Schultz said in an announcement.
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