Starbucks announced on Tuesday that it is replacing CEO Laxman Narasimhan with Chipotle chief Brian Niccol, marking the coffee giant’s fourth chief executive in two years.
Niccol will take over as CEO of the coffee chain starting Sept. 9 following his six-year stint at Chipotle.
Narasimhan, who was tapped to take over for interim CEO Howard Schultz in March 2023, is also stepping down from Starbucks’ board effective immediately.
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Starbucks Chief Financial Officer Rachel Ruggeri will serve as interim CEO during the transition period. Mellody Hobson, Starbucks board chair, will also become lead independent director, Starbucks said.
Hobson commended Niccol, who took over as Chipotle’s CEO in 2018, for being a “culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth.”
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“Like all of us at Starbucks, he understands that a remarkable customer experience is rooted in an exceptional partner experience,” Hobson said. “Our board believes he will be a transformative leader for our company, our people, and everyone we serve around the world.”
Under Niccol’s leadership, Chipotle’s revenue nearly doubled, profits increased nearly sevenfold and the stock price has increased by nearly 800%, according to Starbucks.
Shares of Starbucks rose 10% in premarket trading on Tuesday after news broke about the leadership change.
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