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Brian Niccol, Chipotle’s CEO, to replace Laxman Narasimhan as Starbucks CEO.
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Niccol to start on September 9, with CFO Rachel Ruggeri as interim CEO until then.
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Narasimhan steps down after just a year, amid pressure from activist investors.
Starbucks has announced a surprise leadership change, with Brian Niccol, the current CEO of Chipotle Mexican Grill, taking over as CEO and chairman. Niccol will begin his new role on September 9, replacing Laxman Narasimhan, who has stepped down after just a year in the position. Starbucks CFO Rachel Ruggeri will serve as interim CEO until Niccol’s start date.
The sudden change comes as Starbucks faces pressure from activist investors due to stagnant sales and a declining stock price. Niccol, who has led Chipotle since 2018, is expected to bring a fresh perspective to the coffee chain. Starbucks shares rose 12% in premarket trading following the announcement, while Chipotle shares dropped 10%.
Narasimhan’s departure is effective immediately, and he will also step down from the company’s board. Mellody Hobson, Starbucks’ board chair, will take on the role of lead independent director. Chipotle has announced that Chief Operating Officer Scott Boatwright will serve as interim CEO.
