Chipotle CEO Takes Over at Starbucks

Starbucks has announced the appointment of Brian Niccol, the current CEO of Chipotle, as its new leader, following a slight dip in sales attributed to reduced customer traffic. Niccol will replace outgoing CEO Laxman Narasimhan, as the coffee chain seeks to revitalize its performance after reporting a 1% decrease in consolidated net revenues for the third financial quarter of 2024. Additionally, global store sales fell by 3%, and the company’s shares have experienced a decline of approximately 18% since the start of the year. In a statement, Niccol expressed his admiration for Starbucks' brand and culture, emphasizing his commitment to enhancing customer experiences and driving growth. His appointment was met with a positive market response, as Starbucks shares surged over 20% to nearly $93 on the day of the announcement. This increase comes after a challenging period for the company, which has faced calls for boycotts linked to the ongoing conflict in Gaza, with some social media users alleging a connection between Starbucks and Israel—a claim the company has firmly denied. Starbucks has previously stated that it has never contributed to any government or military operations. Earlier this year, the chain's Middle East franchisee announced the layoff of 2,000 employees due to declining sales related to these boycotts. Niccol, who previously led Taco Bell and significantly boosted Chipotle's stock price, will officially take over on September 9, with Chief Financial Officer Rachel Ruggeri serving as interim CEO until then.