Starbucks replaces its CEO with Chipotle Chief

STarbucks, struggling with weak demand and dissatisfied investors, said on Tuesday that CEO Laxman Narasimhan is stepping down after just over a year in the role.

The Seattle coffee giant said Brian Niccol, president and CEO of Chipotle, will become president and CEO of Starbucks on September 9.

Starbucks shares jumped more than 13% before the market opened.

Narasimhan, a longtime PepsiCo executive who also served as CEO of Reckitt, a U.K.-based consumer health company, became CEO of Starbucks in March 2023. He succeeded Howard Schultz, the longtime leader and chairman Starbucks emeritus who came out of retirement in 2022 to serve as the company’s interim CEO.

But investors quickly grew irritated with Narasimhan as the company’s sales weakened and it dealt with several problems, including competition from lower-cost rivals in China and boycotts in the Middle East and elsewhere over its apparent support for Israel.

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Mellody Hobson, chairman of Starbucks, said Niccol has transformed Chipotle since becoming its CEO in 2018, focusing on menu innovation, operational excellence and digital transformation.

“Brian is a culture bearer who brings a wealth of experience and a proven track record of driving innovation and growth,” Hobson said in a statement. “Like all of us at Starbucks, he understands that a remarkable customer experience is rooted in an exceptional partner experience.”

Schultz said he has long admired Niccol.

“I believe he is the leader Starbucks needs at a crucial time in its history. He has my respect and full support,” Schultz said in a statement.