Starbucks announced Tuesday it will be replacing current CEO Laxman Narasimhan with Chipotle leader Brian Niccol after months of slowing sales, according to reports.
The company said Niccol — who has been widely praised for a turnaround at Chipotle that has boosted the burrito chain’s stock by more than 50% over the past year — will assume the executive position on Sept. 9, according to The Wall Street Journal.
The sudden change in leadership follows a 20% stock drop for Starbucks since Narasimhan took the reins of the company a year and a half ago, succeeding former CEO Howard Schultz.
Schultz, who built the chain into a global behemoth in the 1990s, slammed Narasimhan’s management style on LinkedIn in May.
“Having followed Brian’s leadership and transformation journey at Chipotle, I’ve long admired his leadership impact,” Schultz said of Niccol in a statement. “His retail excellence and track record in delivering extraordinary shareholder value recognizes the critical human element it takes to lead a culture and values driven enterprise.
“I believe he is the leader Starbucks needs at a pivotal moment in its history. He has my respect and full support.”
Starbucks has been implementing changes to its service protocols as it tries to placate activist investor firms Elliott Investment Management and Starboard.
Narasimhan will be stepping down from his CEO and board director positions immediately, the report said.
Mellody Hobson — the company’s executive chairwoman since 2021 — will become the lead independent director.
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