Starbucks Taps Chipotle's Brian Niccol as New CEO, Replacing Laxman Narasimhan Niccol will begin his new role on September 9, while Starbucks CFO Rachel Ruggeri will serve as interim CEO until then.
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Starbucks announced a major leadership shift, revealing that Brian Niccol, the head of Chipotle Mexican Grill, will replace Laxman Narasimhan as chairman and CEO.
Niccol is slated to begin his new role on September 9, while Starbucks CFO Rachel Ruggeri will serve as interim CEO until then.
"Our board believes he will be a transformative leader for our company, our people, and everyone we serve around the world," the coffee chain said in a blog post.
Narasimhan, who assumed the role in September 2022, is stepping down from both his CEO position and the Starbucks board immediately.
The company reported its first sales decline since late 2020 and cut its guidance for the third consecutive quarter in May 2024.
Narasimhan had succeeded longtime Starbucks leader Howard Schultz, who came out of retirement last spring to serve as interim CEO while the company searched for a new chief executive. Starbucks had announced in September 2022 that Narasimhan would become the CEO.
Narasimhan, who previously led Reckitt, a UK-based consumer health and nutrition company, and held senior roles at Pepsico, was expected to steer Starbucks through a period of change.
The abrupt leadership shakeup comes after activist investors Elliott Investment Management and Starboard Value reportedly amassed stakes in the company. Starbucks and Elliott were in talks to add Jesse Cohn, a managing partner at the activist investor, to its board of directors. The coffee chain was also considering setting up committees to review capital allocation and operational improvements.
Meanwhile, Chipotle has appointed Scott Boatwright, the company's chief operating officer, as interim CEO. This shift has impacted the stock markets, with Starbucks shares rising by 12 percent in premarket trading while Chipotle's shares fell by 10 percent.
Niccol's career includes notable achievements as CEO of Chipotle since 2018 and chair of its board since 2020. Prior to Chipotle, he led Taco Bell as CEO and held various senior positions there, including Chief Marketing and Innovation Officer and President.
His experience also spans roles at Pizza Hut and brand management at Procter & Gamble. Niccol, who holds an MBA from the University of Chicago Booth School of Business, is currently a board member of Walmart Inc. and has served on the boards of KB Home and Harley-Davidson.
