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<div><span class="fr-img-caption fr-fic fr-dib" style="width:900px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1723599682384athar-khan-Y9D4hZWB4kI-unsplash.jpg" style="width:900px" class="fr-fic fr-dib"/><span class="fr-inner" style="text-align:left"><span id="isPasted" style="white-space:pre-wrap">Athar Khan, Unsplash</span></span></span></span></div><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">Starbucks said Tuesday that Brian Niccol, chief executive at Chipotle, would be the coffee chain&#x27;s new CEO -- just over a year after current boss Laxman Narasimhan took over the role.</p><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">Narasimhan steps down as chief executive and as a member of the Starbucks board &quot;with immediate effect,&quot; said the company in a statement.</p><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">Starbucks shares were around 21 percent higher in early afternoon trading, while Chipotle Mexican Grill shares fell by about eight percent.</p><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">The leadership shifts come as Starbucks pushes to turn around its business, while contending with broad-based sales declines in its most recent financial results.</p><div><a href="https://news.abs-cbn.com/business/2024/4/30/starbucks-points-to-weaker-consumer-as-profit-falls-624">Starbucks points to weaker consumer as profit falls</a><br/><a href="https://news.abs-cbn.com/business/2024/7/30/starbucks-profits-fall-again-but-ceo-says-turnaround-underway-719">Starbucks profits fall again but CEO says turnaround underway</a></div><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">The company also saw a bruising April earnings report, battering its shares and prompting Narasimhan to promise a reset.</p><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">Starbucks previously cited weakening consumer sentiment and tough market conditions in China as factors in its troubles.</p><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">The company has also been contending with pressure from activist fund Elliott Investment Management, which took a stake in the chain and had been seeking ways to boost the share price.</p><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">The coffee giant is working meanwhile to finalize contracts with unionized stores.</p><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">Lynne Fox, president of the Workers United union, said in a statement Tuesday: &quot;We look forward to continuing to work with Starbucks to resolve massive outstanding litigation and reach fair collective bargaining agreements in the coming months.&quot;</p><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">&quot;The replacement of Laxman Narasimhan as Starbucks CEO is the result of growing dissatisfaction, particularly from activist investors, over the way the chain has been run,&quot; said Neil Saunders, managing director at GlobalData, in a statement.</p><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">&quot;While some of the slowdown can be attributed to a more sluggish consumer cutting back, much is also the result of a worsening store experience and a lack of innovation in areas like food,&quot; he added.</p><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">Investors could be hoping for improvements in day-to-day operations by bringing Niccol on board.</p><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">&quot;Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth,&quot; said Starbucks board chair Mellody Hobson in a statement as the company announced the leadership changes.</p><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">Niccol has served as Chipotle&#x27;s CEO since 2018.</p><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">In naming him Starbucks&#x27; new CEO, the company noted that his work at Chipotle had &quot;driven significant growth and value creation,&quot; citing revenue that has nearly doubled and higher profit.</p><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">Narasimhan, a veteran of PepsiCo and other consumer brands, had taken over the top spot in 2023 after a period working with longtime Starbucks CEO and interim boss Howard Schultz.</p><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">The statement noted that Narasimhan, during his tenure, drove innovation in the brand&#x27;s supply chains and boosted its store operations.</p><p style="margin-top:1em;margin-bottom:1em;padding:0px;border:0px;-webkit- line-height:1.3;color:rgb(0, 0, 0);orphans:2;widows:2">Niccol will start in his new role on September 9, with Starbucks chief financial officer Rachel Ruggeri serving as interim CEO until then.</p><div><a href="https://news.abs-cbn.com/business/06/17/22/how-starbucks-philippines-seeks-to-reduce-environmental-footprint">Starbucks Philippines aims to &#x27;go greener&#x27;, operator says</a></div><div><strong>© Agence France-Presse</strong></div><div><br/></div><div><br/></div>

<p>Starbucks said Tuesday that Brian Niccol, chief executive at Chipotle, would be the coffee chain's new CEO -- just over a year after current boss Laxman Narasimhan took over the role.</p>

Starbucks said Tuesday that Brian Niccol, chief executive at Chipotle, would be the coffee chain's new CEO -- just over a year after current boss Laxman Narasimhan took over the role.

Starbucks names Chipotle boss Brian Niccol as new CEO

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Starbucks names Chipotle boss Brian Niccol as new CEO

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Published Aug 14, 2024 10:13 AM PHT

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