Starbucks CEO Laxman Narasimhan steps down after one year, replaced by Chipotle's Brian Niccol, sending Starbucks stock soaring and Chipotle shares dipping.
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Another year. Another CEO for Starbucks, Laxman Narasimhan is stepping down immediately after taking the role as Starbucks CEO just 1 year in the position. Who will be taking his place? You would never have guessed it. Chipotle CEO Brian Niccol will be the new chairman and CEO, effective September 9th. After the announcement, Starbucks stock ($SBUX) soared 19% at the opening bell, while Chipotle stock ($CMG) dipped 9% at open. This shows the strength and belief of the market that Brian can bring sales back. “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’ new lead independent director, in a release. Starbucks over the past couple years has been losing market share due to independent coffee shops and rivals picking up steam. Niccol has a diverse background in fast food, including being the CEO of Taco Bell in 2015-2018, then joining the rival company Chipotle. He has also held positions at Pizza Hut before joining Taco Bell. Keep an eye on the markets as the news settles this week and is digested by investors on the future of Starbucks and Chipotle.
