(AP) – Amid struggles from weak demand and disgruntled investors, Starbucks said Tuesday that its chief executive, Laxman Narasimhan, would step down after just over a year.
The Seattle coffee giant said Brian Niccol, president and CEO of Chipotle, will become Starbucks’ new president and CEO, effective Sept. 9.
Starbucks shares rose more than 13% in premarket trading.
Narasimhan, a longtime PepsiCo executive who also served as CEO of Reckitt, a British healthcare company, became Starbucks CEO in March 2023. He replaced Howard Schultz, Starbucks’ longtime leader and chairman emeritus, and came out of retirement in 2022 to serve as the company’s interim CEO.
However, investors quickly grew unhappy with Narasimhan as the company’s sales weakened and it faced a range of problems, including competition from lower-cost rivals in China and boycotts in the Middle East and elsewhere over its perceived support for Israel.
Starbucks board chair Mellody Hobson said Niccol has transformed Chipotle since becoming CEO in 2018 by focusing on menu innovation, operational excellence and digital transformation.
“Brian is a culture-changer who brings a wealth of experience and a proven track record of innovation and growth,” Hobson said in a statement. “Like all of us at Starbucks, he understands that an extraordinary customer experience is built on an exceptional partner experience.”
Schultz said he had long admired Niccol.
“I believe he is the leader Starbucks needs at a pivotal moment in its history. He has my full support and respect,” Schultz said in a statement.
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2024-08-16 09:28:23