Starbucks Names Chipotle CEO Brian Niccol as New Chairman and CEO

Starbucks (SBUX) It was announced Aramex announced on Tuesday the appointment of Brian Nichol as its new Chairman and Chief Executive Officer.

Niccol, who has been CEO of Chipotle (CMG) since 2018, is set to join Starbucks on September 9. Current Starbucks CEO Lakshman Narasimhan, who took the helm in late March 2023, will step down from his position effective immediately.

Rachel Ruggieri, Starbucks’ CFO, who has held the position since 2021, will serve as interim CEO.

Starbucks shares rose about 13% in premarket trading following the announcement, while Chipotle shares fell about 10%.

The company told Yahoo Finance that the board of directors made the decision recently, describing it as an opportunity that could not be missed, given Nicole’s proven track record.

Former CEO Howard Schultz stepped down from his board seat in September. Starbucks claims he was not part of the initial hiring process but met with Nicole toward the end of the hiring process.

“Having followed Brian’s leadership and transformation journey at Chipotle, I have long been a fan of his leadership impact,” Schultz said in a statement.

“I believe he is the leader Starbucks needs at this pivotal moment in its history. He has my full respect and support.”

This comes after Schultz called for a complete overhaul of Starbucks’ strategy in a LinkedIn post in May.

Starbucks also announced Tuesday that Mellody Hobson, its board chair, will now serve as its lead independent director.

“Brian is a culture champion who brings a wealth of experience and a proven track record of driving innovation and growth,” Hobson said in a statement. “Our board believes he will be a transformational leader for our company, our people and all those we serve around the world.”

News of Nicole’s appointment comes as Starbucks has been courting activist investors, including Elliott Investment Management and Right value.

“We believe his appointment will be welcomed by all of our shareholders,” the company said in a statement to Yahoo Finance.

Elliott described the change as a “transformational step” in ReleaseThe statement indicated that it had been communicating with “the Starbucks Board of Directors over the past two months regarding our views on the key issues facing the company.”

Late last month, the coffee chain reported another challenging quarter, with same-store sales down 3% — the second straight quarter of declines — while traffic fell 5%. Starbucks’ U.S. sales fell 2% during the quarter. Starbucks shares are down 23% over the past year.

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