The Starbucks CEO’s revolving door keeps spinning as the company struggles with sinking sales.
The Business said on Tuesday that Laxman Narasimhan is leaving immediately after just one year in the position. With effect from September 9, the beleaguered coffee chain has appointed Brian Niccol, the CEO of Chipotle and a seasoned business fixer, as both chairman and CEO.
In less than two years, Niccol will become Starbucks’ fourth CEO, having taken the helm of the Mexican-inspired food business since 2018. Citing its revenue growth of roughly 800% during his tenure, Starbucks claimed he has “driven significant growth and value creation” and set “new standards in the industry.”
“Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth,” said Mellody Hobson, Starbucks’ lead independent director, in a release. “Our board believes he will be a transformative leader for our company, people, and everyone we serve worldwide.”
Starbucks’ (SBUX) stock soared nearly 19% at the open, while Chipotle’s (CMG) dipped 9%. Tuesday’s announcement wiped away Starbucks’s year-to-date losses, and the stock is on track for the biggest one-day percentage gain since it went public in 1992.
Narasimhan left Starbucks due to a combination of factors, including slumping sales, loss of market share to competitors, and dissatisfaction with his leadership from investors and former CEO Howard Schultz. His failure to effectively address challenges in the U.S. market, such as a declining store experience and lack of innovation, also contributed to his departure.
Stay tuned to the business world with BuzyFeed!
