Brian Niccol has led Chipotle since 2018 and helped its stock rise by over 800%|LinkedIn
Starbucks is hoping to reverse its global sales slowdown by appointing a new CEO, the current head of Chipotle, Brian Niccol. His role begins September 9 and follows the resignation of Laxman Narasimhan, who led the coffee chain for over a year.
Under Narasimhan’s leadership since March 2023, Starbucks’ sales dropped 3% globally, including a 2% decline in North America and 14% in China (its second-largest market) last quarter.
The drop in sales is mostly attributed to consumer fatigue with high prices and shifts in the coffee hangout’s business model.
Additionally, activist investors like Elliott Investment Management and Starboard Value have been pressuring Starbucks to address its declining performance. Elliott called Niccol’s appointment a “transformational step forward.”
After the announcement, Starbucks shares surged by 25%, while Chipotle shares dropped nearly 8%.
Who is the new CEO?
Niccol has led Chipotle since 2018 and helped its stock rise by over 800%. He successfully increased the company’s market value from $8.9 billion in 2018 to $76.5 billion as of Monday.
He is Starbucks’ fourth CEO in two years. The coffeehouse giant faces challenges, including declining sales in America, competition from low-cost rivals, and operational inefficiencies.