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Starbucks has named Chipotle chairman Brian Niccol as its chief executive, in a major shakeup as the world’s largest coffee chain grapples with declining sales and pressure from activist investor Elliott.
The company said on Tuesday that its current chief executive, Laxman Narasimhan, will step down immediately.
Niccol will assume the CEO role on September 9; until then, Rachel Ruggeri, the company’s CFO, will serve as interim CEO.
Niccol’s appointment comes aVsceker Starbucks founder Howard Schultz criticized Narasimhan’s leadership at a time when the company is grappling with weak demand and a push for change from Elliott.
Starbucks also named Mellody Hobson, the current chair of the board and a close associate of Schultz, as its lead independent director on Tuesday.
“[Niccol] has my respect and full support,” Schultz said. “I thank Mellody and the Starbucks board of directors for their deep commitment to shaping the future of this extraordinary global phenomenon that is Starbucks.”
“We are thrilled to welcome Brian to Starbucks. His phenomenal career speaks for itself,” Hobson added, citing his “proven track record of driving innovation and growth.”
Starbucks shares rose 11 percent in premarket trading. Chipotle shares fell 10 percent.
