Shares in Chipotle Mexican Grill took a dive on Tuesday after company CEO Brian Niccol accepted a new position as the chairman and chief executive of Starbucks. Niccol, who has headed the burrito chain since 2018, will replace outgoing Starbucks CEO Laxman Narasimhan in early September, overseeing the coffee giant’s efforts to handle declining sales and disgruntled activist investors.
Following the leadership shakeup, shares of Starbucks Corp. shot up by 22% during morning trading. At the same time, Chipotle stock slid by roughly 12%.
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“We are thrilled to welcome Brian to Starbucks. His phenomenal career speaks for itself. Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth. Like all of us at Starbucks, he understands that a remarkable customer experience is rooted in an exceptional partner experience,” said a statement from Starbucks. “Our board believes he will be a transformative leader for our company, our people, and everyone we serve around the world.”
“I am excited to join Starbucks and grateful for the opportunity to help steward this incredible company, alongside hundreds of thousands of devoted partners,” said Niccol in the same press release. “I have long-admired Starbucks iconic brand, unique culture and commitment to enhancing human connections around the globe. As I embark upon this journey, I am energized by the tremendous potential to drive growth and further enhance the Starbucks experience for our customers and partners, while staying true to our mission and values.”
Related: Analysis Finds Chipotle Portion Sizes Can Vary Up to 87% Between Restaurants
Niccol will start his new role at Starbucks on September 9. Starbucks board chair Molly Hobson will serve as interim CEO following Narasimhan’s immediate departure. Narasimhan became CEO of the company in March 2023 and was the first executive hired from outside the company, but investors quickly soured on his leadership as store sales declined and the coffee franchise was hit with boycotts over the Israel-Hamas war.
In a separate statement, Chipotle confirmed that Niccol’s last day as CEO will be August 31, at which point Chief Operating Officer Scott Boatwright will step in as interim CEO.
Connor Walcott is a staff writer for Valuetainment.com. Follow Connor on X and look for him on VT’s “The Unusual Suspects.”
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