Anika Begay
Brian Niccol, CEO of Chipotle.
Source: Chipotle
The star announced on Tuesday that it will replace CEO Laxman Narasimhan with Chipotle CEO Brian Niccol.
Starbucks shares rose 10% in premarket trading on the news, while Chipotle shares fell 10%.
Narasimhan took over as CEO in March 2023. The coffee giant’s performance has suffered this year, hurt by weak sales in the U.S. and China, its two largest markets. Former CEO Howard Schultz, who handpicked Narasimhan as his successor, wrote an open letter in May, speaking out about the company’s problems and offering advice, but never addressing Narasimhan by name. Activist investor Elliott Management took a stake in the company in recent weeks.
Narasimhan’s departure is effective immediately. Starbucks CFO Rachel Ruggeri will step in as interim CEO until Sept. 9, when Niccol will officially assume the top job.
Niccol has been CEO of Chipotle since 2018. Previously, he led Yum Marches Taco Bell. As CEO of Chipotle, he helped the chain recover from a foodborne illness scandal and guided its restaurants through the pandemic. In recent quarters, while other restaurants have reported sharp declines in consumer spending, Chipotle has seen its traffic and sales rise, bucking the trend.
Chipotle COO Scott Boatwright will serve as interim CEO of the burrito chain. Chipotle CFO Jack Hartung, who was planning to retire next year, will now stay on as president of strategy, finance and supply chain.
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